"Goodman noted that investor ownership of single-family homes often viewed as a major driver of scarcity is currently limited at the national level. Institutional investors own a very small percentage of the total single-family market. They own about 4%, so let's just start there, said Goodman. They own a lot more in some markets. I believe it's 27% in Atlanta or something like that. But overall, nationwide, it's 4%."
"We built around 500,000 units a year when the demand was between a million to 1.5 million, so we really got behind. That underbuilding compounded by the pandemic, inflation and supply chain shocks created years of pent-up demand. Once you get behind, then you get a situation where you've got too little supply, and then supply and demand takes over, Colton said."
Institutional investors account for roughly 4% of single-family homes nationwide, with substantially higher shares in some local markets. A proposed law, SB 693, would bar investment firms with $50 million or more in assets from buying homes in one state after investor-driven purchases reached nearly one in five recent transactions in some communities. Housing shortages stem from post-2008 underbuilding—construction fell from about 2 million units annually to roughly 500,000 while demand remained near 1–1.5 million—compounded by the pandemic, inflation, and supply-chain disruptions. Pent-up demand pushed home prices well above wage growth, with land costs driving much of the escalation.
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