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fakedang 2 days ago

Would be nice if Blackrock weren't outbidding first time homebuyers to purchase residential properties to rent out at inflated rates.

Esophagus4 2 days ago | parent | next [-]

I know this is a classic boogeyman, but while large institutional investors are highly visible, they don’t own much of the residential real estate market or contribute to price changes in any meaningful way.

Large institutional investors own < 1% of single family homes and < 3% of single family rentals.

20% of US single family homes are investor owned at all, and 85% of those are held by mom‑and‑pop with <= 5 properties.

It’s retail investors that are pushing up the market for other retail buyers.

https://thedailyrecord.com/2025/07/08/investor-homebuying-hi...

https://www.aei.org/research-products/report/institutional-i...

fleventynine 2 days ago | parent | prev [-]

You've got them mixed up with Blackstone.

fakedang 2 days ago | parent [-]

While Blackstone and other PE firms are involved in buying those assets directly (part of my old job), Blackrock is also indirectly involved by buying up massive portions of the REITs listed by these firms, which validated the business in the first place. Without the extremely insane amounts of money pumped by Blackrock, Vanguard and State Street into these structures, all for some measly 4-5% return (laughable for most sophisticated investors but apparently good enough for these guys), they were able to put the accelerant to the fire. Neither BX nor any other PE firm would be doing this model if a market didn't exist for it.

While I'm obviously biased here, imo Blackstone is much better still because you don't see Steve Schwarzman go around pontificating while using the voting rights of passive investors to force certain behaviors upon the boards of nearly every company.