Private Equity Now Owns 1 in 8 Apartment Units, a 50 Percent Increase Since 2021

Private equity firms now own almost 3 million apartment units in the United States, about one in eight units and roughly 13 percent of the national total. About half of these units were purchased since 2021, reflecting a shift toward housing amid a broader housing crisis. Private equity uses investment capital from pension funds and endowments to buy properties for profit. In housing, firms seek unregulated rents and capped property taxes to maximize returns, then aim to raise building value and sell quickly at higher prices. A report by the Private Equity Stakeholder Project links this expansion to worsened affordability, community displacement, large rent increases, aggressive evictions, and reduced tenant quality of life. Texas leads in private equity-owned units, likely due to lenient zoning, weak tenant protections, and lack of state income tax.

"A new report by the Private Equity Stakeholder Project (PESP) shows that private equity firms now own almost 3 million apartment units in the U.S., which amounts to one in eight apartment units, some 13 percent of apartment units in the country. Approximately half of these units were bought since 2021, highlighting private equity's turn to the housing market even as the U.S. suffers from a housing crisis."

"Private equity firms invest money from pension funds and endowments to buy assets in order to make significant profit. In the housing market, private equity firms look for rents that are unregulated, with capped property taxes, in order to maximize their profits. According to the private equity business model, firms aim to increase the value of buildings before quickly selling them for a higher profit."

"PESP's report found that private equity's expanded presence in the housing market "has exacerbated housing affordability issues, displacing local communities through large rent hikes and aggressive evictions, and diminishing tenants' quality of life.""

"Texas has the largest number of apartments owned by private equity in the country, with almost 580,000 units - and this is likely due to the state's lenient zoning regulations, weak tenant protections, and lack of state income tax. Though there is a high level of private equity ownership"

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