Corporations as Landlords

Large private corporations are playing an increasingly direct role in the purchase of affordable housing and rental stock. In 2021 and 2022, the top private equity firms owned more than one million apartments in communities across the nation. The number of "Wall Street–owned" homes is only growing. After purchasing properties, many firms seek to maximize their profits through cost-cutting, additional fees for rental agreements and payments, and aggressive evictions followed by major rent increases. On the other hand, tech companies and major corporations began investing in affordable housing programs in communities near their operations several years ago; these efforts seem to be tapering off, however.

Should the acquisition of housing stock by private corporations continue, communities may see reduced supplies of affordable housing and increased homelessness. Private-sector involvement in housing requires input from planners, who can provide insight into the root causes of displacement and gentrification. Planners should be prepared to recognize these trends at the local level and work to ensure housing accessibility and affordability for all.