What's Hot

    Experts Share on the Latest Industrial Trends at BEX Panel

    August 15, 2025

    Pinal BoS Discusses Another New Data Center and Energy Campus

    August 15, 2025

    Ritz-Carlton Paradise Valley Fight Could End in Foreclosure

    August 15, 2025
    Facebook Twitter Instagram
    AZBEX
    NEWS TICKER
    • [August 15, 2025] - Experts Share on the Latest Industrial Trends at BEX Panel
    • [August 15, 2025] - Pinal BoS Discusses Another New Data Center and Energy Campus
    • [August 15, 2025] - Ritz-Carlton Paradise Valley Fight Could End in Foreclosure
    • [August 15, 2025] - RTA Funding Proposal Stirs Controversy
    • [August 15, 2025] - Arizona Projects 08-15-25
    • [August 13, 2025] - Banner Announces Ironwood Medical Center Expansion
    • [August 13, 2025] - Gilbert Planning Approves Entitlements for The Ranch Mixed-Use
    • [August 12, 2025] - Sedona Parish Plans Major Expansion with New Facilities and Affordable Housing
    Facebook Twitter YouTube LinkedIn
    • Home
    • News
      1. View Latest
      2. Planning & Development
      3. Local News
      4. Classifieds
      5. Editorial Analysis
      6. Budgets & Funding
      7. Commercial Real Estate
      8. People on the Move
      9. Arizona Projects
      10. Legislation & Regulations
      11. Trends

      Pinal BoS Discusses Another New Data Center and Energy Campus

      August 15, 2025

      Banner Announces Ironwood Medical Center Expansion

      August 13, 2025

      Gilbert Planning Approves Entitlements for The Ranch Mixed-Use

      August 13, 2025

      Sedona Parish Plans Major Expansion with New Facilities and Affordable Housing

      August 12, 2025

      Experts Share on the Latest Industrial Trends at BEX Panel

      August 15, 2025

      Ritz-Carlton Paradise Valley Fight Could End in Foreclosure

      August 15, 2025

      Applied Materials Announces New Partnership, Ariz.

      August 12, 2025

      Mohave County May Remove Data Centers as Economic Development Goal

      July 23, 2025

      Scottsdale Hospitals War May Heat Up with New Banner Request

      July 29, 2025

      Glendale Voters to Determine VAI Resort’s Fate

      May 16, 2025

      Legislation Would Effectively Strip NIMBYs of Referendum Tool

      February 11, 2025

      2025 Forecast Tries to Clarify an Uncertain Market

      February 7, 2025

      RTA Funding Proposal Stirs Controversy

      August 15, 2025

      Ariz. LIHTC to Sunset Under New Budget

      July 8, 2025

      State Government Shutdown Averted as Hobbs Signs Budget

      July 1, 2025

      Arterial Life Cycle Program Covers 20 Years of Street Development

      June 27, 2025

      Commercial Real Estate 08-12-25

      August 12, 2025

      Commercial Real Estate 08-05-25

      August 5, 2025

      Commercial Real Estate 07-29-25

      July 29, 2025

      Commercial Real Estate 07-22-25

      July 22, 2025

      Industry Professionals 08-12-25

      August 12, 2025

      Industry Professionals 08-05-25

      August 5, 2025

      Industry Professionals 07-29-25

      July 29, 2025

      Industry Professionals 07-22-25

      July 22, 2025

      Arizona Projects 08-15-25

      August 15, 2025

      Arizona Projects 08-08-25

      August 8, 2025

      Arizona Projects 08-01-25

      August 1, 2025

      Arizona Projects 07-25-25

      July 25, 2025

      Ritz-Carlton Paradise Valley Fight Could End in Foreclosure

      August 15, 2025

      Ariz. Supreme Court Upholds Citizens’ Right to Halt Local Projects

      August 8, 2025

      Proposed Legislation Aims to Increase Housing Supply

      August 5, 2025

      Mohave County May Remove Data Centers as Economic Development Goal

      July 23, 2025

      Experts Share on the Latest Industrial Trends at BEX Panel

      August 15, 2025

      Multifamily Developer Confidence Up in Q2

      August 12, 2025

      Ariz. Construction Gained 600 Jobs in June

      July 22, 2025

      BEX Updates Construction Sector Projections in Annual Mid-Year Update

      July 18, 2025

      Experts Share on the Latest Industrial Trends at BEX Panel

      August 15, 2025

      Pinal BoS Discusses Another New Data Center and Energy Campus

      August 15, 2025

      Ritz-Carlton Paradise Valley Fight Could End in Foreclosure

      August 15, 2025

      RTA Funding Proposal Stirs Controversy

      August 15, 2025
    • AZBEX
      • Subscribe
      • Classifieds
      • Advertising
    • DATABEX
      • DATABEX Log-In
      • Webinars
      • Monthly Snapshot
    • Events
      • 2025 Hospitality LMS
      • 2025 Public Works Conference
    • About Us
      • Meet the Company
      • Meet the Sales Team
      • Meet the Editorial Team
      • Meet the BEXperts
    • CIP Special Report
    AZBEX
    Home » Economic Development » Backlash Grows Against Institutional Housing Investors
    Economic Development

    Backlash Grows Against Institutional Housing Investors

    BEX StaffBy BEX StaffFebruary 18, 2022No Comments3 Mins Read
    Aerial view of a desert community in Arizona during the golden hour at sunset.
    Share
    Facebook Twitter LinkedIn Pinterest Email

    By Roland Murphy for AZBEX

    Backlash is growing over the rising number of institutional investors entering the housing market as they search for yield in an inflationary economy awash in capital.

    According to a recent article in GlobeSt.com, Ohio Democratic U.S. Senator Sherrod Brown, who chairs the Committee on Banking, Housing and Urban Affairs, said investors and asset management institutions are taking advantage of an allegedly “captive” housing supply situation to increase their returns.

    GlobeSt.com quotes Brown as saying, “Private equity firms, corporate landlords and investors saw a shortage, and they saw a captive market. They see these [single-family houses] as nothing more than annual return on equity,” during a Committee hearing.

    Brown also referred to the growing presence of institutional investors looking to capitalize on the current nationwide market forces of high demand and short supply, fueled by labor shortages, supply chain issues and inflated materials prices as a “land grab.”

    The article noted Blackstone Group left the single-family rental market in 2019 and then reentered with a $6B deal to buy Home Partners of America, which held a portfolio of more than 17,000 units.

    Debt and equity staked in single-family rentals by investors totaled roughly $30B in 2021, and around 100,000 SFR units started construction around the country last year.

    However appealing the specter of an institutional monster standing like some evil capitalist ogre or boogeyman on the flattened backs of the American homebuyer may be, and however much political hay can be made from painting that image, it has already been shown to be more comforting myth than cold market reality.

    An article in Vox last year covered BlackRock’s activity in the sector and the resulting demonization of investors inflating housing prices that has, “yanked the dream of homeownership out of the desperate, clutching hands of millions.”

    Vox then went on to point out the comparatively small role institutional investors play in housing market, particularly in single-family, making up only an estimated 20% of sales. While concerns about cash buyers reducing opportunities for traditional mortgage-based buyers have a basis in reality, the article notes the real issue driving up prices is not “iBuyers” and assest funds.

    Simply stated, “The idea that institutional investors are somehow largely to blame for the current housing market catastrophe is wrong and obscures the real problem. Housing prices have been skyrocketing due to historically low supply, low mortgage rates, and the largest generation in American history entering the market looking for starter homes.”

    It’s easy to rail against heavily capitalized institutions potentially making an already difficult and multifaceted problem more cumbersome. What is not easy is addressing the real underlying issues of monetary policy, inflation, three decades of under-promoted skilled trade education, global supply chain constriction, and bureaucratic impediments to new supply delivery.

    Rather than inventing boogeymen to keep voters afraid and direct their anger and frustration elsewhere, perhaps Sen. Brown and other leaders at the local, state and national levels could better serve their constituents by trying to slay the real monsters in the room.

    analysis Blackstone Group GlobeSt.com Home Partners of America Housing and Urban Affairs institutional investors market disruption Senate Committee on Banking Sherrod Brown trends Vox
    Share. Facebook Twitter Pinterest LinkedIn WhatsApp Reddit Tumblr Email

    Related Posts

    Experts Share on the Latest Industrial Trends at BEX Panel

    August 15, 2025

    Multifamily Developer Confidence Up in Q2

    August 12, 2025

    Mohave County May Remove Data Centers as Economic Development Goal

    July 23, 2025

    Leave A Reply Cancel Reply

    You must be logged in to post a comment.

    Our Picks

    Experts Share on the Latest Industrial Trends at BEX Panel

    August 15, 2025

    Pinal BoS Discusses Another New Data Center and Energy Campus

    August 15, 2025

    Ritz-Carlton Paradise Valley Fight Could End in Foreclosure

    August 15, 2025

    RTA Funding Proposal Stirs Controversy

    August 15, 2025
    Stay In Touch
    • Facebook
    • Twitter
    • LinkedIn
    • YouTube
    Don't Miss
    Local News

    Experts Share on the Latest Industrial Trends at BEX Panel

    August 15, 20250

    By Aaliyah Koelzer for AZBEX On Aug. 12, Industrial sector professionals from across the Valley…

    Pinal BoS Discusses Another New Data Center and Energy Campus

    August 15, 2025

    Ritz-Carlton Paradise Valley Fight Could End in Foreclosure

    August 15, 2025

    RTA Funding Proposal Stirs Controversy

    August 15, 2025

    BEX serves architecture, engineering and construction firms as well as all the ancillary product and service categories that market to them. These include manufacturing representatives, public agencies and private real estate organizations, specialty subcontractors and services providers related to our industry.

    Our Picks

    Experts Share on the Latest Industrial Trends at BEX Panel

    August 15, 2025

    Pinal BoS Discusses Another New Data Center and Energy Campus

    August 15, 2025

    Ritz-Carlton Paradise Valley Fight Could End in Foreclosure

    August 15, 2025
    Contact Us

    Phone: 480-709-4190
    Address: P.O. Box 12196 Tempe, AZ 85284
    Email: sales@azbex.com

    Type above and press Enter to search. Press Esc to cancel.