Only 14.9% of real estate investors have a favorable view of institutional landlords, according to a new survey.
Wall Street’s Growing Role in the Housing Market Frustrates Small Landlords
On a national level, institutional home buyers—firms owning at least 1,000 homes—aren’t massive players yet. They only own around 1% of the U.S. single-family stock, according to Parcl Labs. When it comes to investor ownership, smaller landlords with two to nine homes in their total portfolios are still the biggest players in the national housing market.
That said, in a handful of regional pockets, institutional homebuyers have a greater presence. In fact, just six markets (Atlanta, Charlotte, Dallas, Houston, Phoenix, and Tampa) are home to 36.8% of all the nation’s institutionally owned single-family homes.
How do midsized and mom-and-pop landlords feel about these institutional landlords?
To find out, ResiClub teamed up with Flock Homes to poll 284 real estate investors. It revealed that 85% of those surveyed own between 2 and 20 investment/rental properties.
Among the real estate investors who own investment/rental properties polled in the Flock Homes-ResiClub Real Estate Investor Survey conducted this month, 54.4% said that they have a “somewhat unfavorable” (30.9%) or “very unfavorable” (23.5%) view of institutional landlords.
Only 14.9% of real estate investors have a “somewhat favorable” (12.4%) or “very favorable” (2.5%) view of institutional landlords.
Interestingly, while real estate investors aren’t fans of institutional landlords, they’re far more split about whether stricter regulations for the big dogs would actually benefit smaller landlords.
Among real estate investors surveyed, 54.2% say stricter regulations targeting corporate landlords would be “somewhat positive” (46.3%) or “very positive” (7.9%) for mom-and-pop landlords.
On the flip side, 45.8% of real estate investors say stricter regulations targeting corporate landlords would be “somewhat negative” (32.1%) or “very negative” (13.8%) for mom-and-pop landlords.
According to Parcl Labs, institutional operators (those owning at least 1,000 single-family homes) have the highest percentage of ownership in these five markets:
- Atlanta (4.33%)
- Jacksonville (3.77%)
- Charlotte (3.23%)
- Memphis (3.11%)
- Tampa (2.85%)
Even within housing markets that percentage can vary a great deal. As previously reported, when institutions push into a market, they often concentrate in the same neighborhoods.
Source: Fast Company
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