Griffin Capital has recently released a report titled, Institutional Ownership of Single-Family Homes, Homeownership Affordability, and the Role of Build-to-Rent, to give an evidence-based perspective on the executive order to restrict institutional purchases of single-family homes and explain why housing affordability is primarily a supply-and-cost-of-ownership problem, not an investor-competition problem.
A few key highlights:
An executive order to ban institutional investors from purchasing single-family homes is politically resonant, but it does not address the core drivers of affordability: a persistent shortage of housing supply and elevated costs of homeownership (home prices, mortgage rates, and maintenance).
Institutional ownership and buying activity in U.S. single-family homes is a small share of the market (less than 1 percent, depending on the definition), and institutional purchases have fallen sharply since 2022.
Because
