Jan. 27, 2026
A new piece from leading rental housing economist Jay Parsons on the “Top 11 Myths on Institutional Investors of Single-Family Homes”:
“I recently saw a survey showing nearly half of Americans blame ‘investors using housing as profit’ as the primary reason for high home prices. It’s a rare topic that unites portions of the left and the right, as President Trump’s proposed ban on institutional homebuying brings together an unlikely alliance of free-market capitalists and pro-diversity progressives. Both sides are seemingly unaware they’re undermining their own causes, likely due to narratives detached from realities. Perhaps the best example of detachment from reality is the fact that many Americans still think BlackRock owns houses (they don’t). However, in fairness, clearly Americans are frustrated about housing affordability. And for good reason!. The pain is real.
“But chasing a boogeyman won’t make housing more affordable. If we’re serious about solving housing affordability and availability, the most compassionate and most serious thing we can do is discard wildly held conspiracy theories — and instead focus on proven solutions that can move the needle. This post is intended to use data and academic research to deflate those myths.”
Key Housing Myths Debunked
Reality: Just 0.5% per John Burns data; small “mom-and-pop” investors outnumber institutions 40-to-1. And institutional investors have been net sellers recently.
Reality: They target undervalued, repair-needing homes at below first-time buyer prices rarely outbidding homebuyers. Freddie Mac research shows that the prime drivers of post-pandemic rising prices are under-building, low mortgage rates, and zoning restrictions.
Reality: Research shows that institutional investors spend $15,000 – $39,000 per home on renovations, compared with the average of $6,300 for typical homeowners.
Reality: U.S. homeownership sits at 65.3%, right at long-term averages. While still down from the housing bubble during the Great Financial Crisis, those higher rates were supported by subprime mortgage lending.
Reality: Institutional investors add supply, renovate rundown and dilapidated houses, stabilize markets, and provide professional management that can improve renter outcomes and neighborhood diversity.
Read the full article with the Top 11 Myths on Institutional Investors of Single-Family Homes here.
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