Such research has found that the vast majority of SFRs are owned by small-scale investors. Properties owned by large-scale investors tend to increase prices of nearby homes,1 while ownership by small-scale investors appears to have the opposite effect.2 Research has also found that investor-owned SFRs expand housing options available to renters3 but may negatively impact renter welfare in terms of eviction filings4 and rent increases.5
Surprise. Large institutional investors want a return on their investment so they tend to put more upgrades into their communities. But this often prices out residents. Mom and pops are the predominate second resident owners. But housing isn’t getting better anywhere. I suspect this has more to do with macro trends than who owns the house.
IE. We used to build homes like gangbusters. Control the supply of housing and the demand presses up prices. I don’t understand why this isn’t more understood. Oh thats right because increasing supply of homes depresses peoples “investment”.
Quote Citation: Charles S. Gascon , Lillian Fu, “Single-Family Rentals and the U.S. Housing Market”, October 31, 2025, https://www.stlouisfed.org/on-the-economy/2025/oct/role-single-family-rentals-us-housing-market