A new report from the Lincoln Institute of Land Policy and the Center for Geospatial Solutions (CGS) has determined that corporate entities and investors now own 8.9% of residential parcels in 500 counties, or roughly one in 11 parcels. The report is full of data so worth a read if you are interested.
According to an article on WRE New, " Corporate ownership is defined by the report as spanning the spectrum from smaller limited liability corporations to large institutional investors such as private equity firms, pension funds, and real estate investment trusts." Below is a graph from the report showing the areas in the country where corporate owners have a significant foothold. Note, California doesn't have any areas on the list. I think this is primarily because property is so expensive here and it is hard for a corporate investor to make the kind of return they can make in other areas. Today President Trump announced he is going to take on the issue of corporate ownership of residential real estate in hopes of addressing the housing shortage for those hoping to buy. If anything comes out of his comments I will blog on it too.
