Key Takeaways
- • The Private Equity Stakeholder Project (PESP) released the PESP Housing Policy Primer, the fourth installment of its Tools for Tackling Corporate Landlords policy analysis series, consolidating state, local and federal policy options against corporate landlords in housing.
- • PESP cites more than 1.6 million U.S. housing units owned by private equity, and describes tenant harms including higher rent increases, inflated fees and deferred maintenance.
- • The report acknowledges obstacles including state preemption, conservative legislative majorities and well-funded landlord opposition, while highlighting measures it says can be replicated across government levels.
- • PESP policy director Chris Noble said regulating corporate landlords such as private equity firms is "challenging" but "far from impossible."
Summary
The Private Equity Stakeholder Project released the PESP Housing Policy Primer, the fourth installment of its Tools for Tackling Corporate Landlords series, according to the publication's announcement on pestakeholder.org. The report aims to consolidate emerging policy solutions addressing what it describes as the increasing corporate domination of housing markets, particularly by private equity firms.
According to the report, private equity and other institutional investors have become increasingly active in housing since the years following the 2008 financial crisis. PESP argues that these owners crowd first-time homebuyers out of the market and, because they can gain market power in areas with few rental alternatives, may charge high costs while offering minimal repair and upkeep. PESP cites more than 1.6 million U.S. housing units owned by private equity and points to a 2022 Congressional subcommittee finding that renters in institutionally owned single-family rental homes often experience higher rent increases, inflated fees and diminishing housing quality over time.
The primer surveys legislative and regulatory tools at federal, state and local levels. PESP acknowledges persistent barriers, including state preemption, conservative legislative majorities and well-funded landlord opposition, but says it highlights successful measures that can be replicated. The report follows earlier installments covering landlord licensing and rental inspections (Part 1), state preemption of housing justice measures (Part 2), and pro-competitive housing policy reforms (Part 3).
PESP policy director Chris Noble said, "Private equity's growing grip on the housing market is destabilizing communities and eroding housing security for millions of families." The full report is available at pestakeholder.org.
According to the report, private equity and other institutional investors have become increasingly active in housing since the years following the 2008 financial crisis. PESP argues that these owners crowd first-time homebuyers out of the market and, because they can gain market power in areas with few rental alternatives, may charge high costs while offering minimal repair and upkeep. PESP cites more than 1.6 million U.S. housing units owned by private equity and points to a 2022 Congressional subcommittee finding that renters in institutionally owned single-family rental homes often experience higher rent increases, inflated fees and diminishing housing quality over time.
The primer surveys legislative and regulatory tools at federal, state and local levels. PESP acknowledges persistent barriers, including state preemption, conservative legislative majorities and well-funded landlord opposition, but says it highlights successful measures that can be replicated. The report follows earlier installments covering landlord licensing and rental inspections (Part 1), state preemption of housing justice measures (Part 2), and pro-competitive housing policy reforms (Part 3).
PESP policy director Chris Noble said, "Private equity's growing grip on the housing market is destabilizing communities and eroding housing security for millions of families." The full report is available at pestakeholder.org.
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