Does Blackrock Buy Houses? (2024)

FAQs

Does Blackrock Buy Houses? ›

We want to make perfectly clear: BlackRock is not buying individual houses in the U.S. A number of other large asset managers and private equity firms are very active today in purchasing single-family residences.

We manage the properties ourselves and where required, draw in best-in-class operating partners to supplement our in-house expertise. It's central to how we operate. BlackRock was founded as a risk management business and clients come to us in times of need and as a source of reliable risk-adjusted returns.

Homeowner rates by race and ethnicity

Homeownership statistics by race show that White households have the highest rates of homeownership, at 74.3 percent. The homeownership rate for Asian homeowners is the second highest at 62.3 percent, followed by American Indian or Alaskan native homeowners at 51.6 percent.

They're especially active in fast-growing Sun Belt markets like Phoenix and Atlanta, where more than a third of homes on the market are now being purchased by private equity firms like Blackstone or dedicated single-family rental companies. Even Amazon founder Jeff Bezos has entered the single-family housing market.

All over America, hedge funds (in the form of corporations, partnerships, and real estate investment trusts that manage funds pooled from investors) have bought up modestly priced houses, frequently in neighborhoods with large Black and Latino populations, and converted the properties to rentals.

As a fiduciary asset manager, we invest and manage capital on behalf of our clients in a vast array of public and private U.S. real estate markets – but buying individual homes is not one of them. Below are facts on how we DO participate in the U.S. real estate market.

What company owns the most single-family homes? Invitation Homes is the largest single owner of single-family rental homes in the United States, managing more than 80,000 homes as of 2021.

While it is true that Blackrock does not own houses or own companies that own houses, they do invest in companies that own houses. Blackrock owns 6.7% of American Homes for Rent, which owns 59,000 homes in the United States.

Institutional investors are able to outbid working families for single-family homes by tapping into their wealth, buying these properties in cash. Further, they have been buying smaller, more modest homes — properties that would usually be purchased by first-time homebuyers.

In some states, the share of homes being purchased by investors is through the roof. California ranked the highest at approximately 35%. However, there are eight other states with home investor shares of 30% or more for 2023, according CoreLogic's analysis: California (35%)

How many US homes are owned by hedge funds? ›

Institutional investors — such as hedge funds, private equity firms, and endowments — owned an estimated 574,000 properties as of June 2022, according to the Urban Institute.

Less than 2% of single-family homes are owned by investors with 10 properties or more, statewide, according to the California Research Bureau. What institutional investor-friendly markets have in common: Rapidly growing populations and relatively low real estate prices compared to rents.

Potential homebuyers are indeed facing a tough market, but that doesn't seem to be deterring some: Sales of previously owned homes in the US are up from the decades lows in the fall and only edged lower by 0.7% in May to a seasonally adjusted annual rate of 4.11 million.

Does BlackRock invest in companies that own housing? While it is true that Blackrock does not own houses or own companies that own houses, they do invest in companies that own houses.

BlackRock is one of the world's leading providers of investment, advisory and risk management solutions. We are a fiduciary to our clients. We're investing for the future on behalf of our clients, inspiring our employees, and supporting our local communities. Watch the video to learn more.

After the housing crash of 2008, Blackstone began buying up large numbers of single-family homes that banks had foreclosed upon and turning them into rentals. Other Wall Street firms followed suit, and investors big and small continue to scoop up an increasing number of homes across the country.

Business Focus: BlackRock focuses on asset management and investment advisory services, whereas Blackstone specializes in private equity, real estate, and alternative investments. AUM: BlackRock manages a significantly larger amount of assets compared to Blackstone.