January 09, 2026
America's Housing Crunch Has the Wrong Villain
Institutional investors are often blamed for rising home prices—but the data tells a different story.
Large investors own roughly 1% of U.S. single-family homes, never exceeded 3% of annual purchases, and are highly concentrated in a small number of counties. Meanwhile, housing prices have surged most dramatically in markets with little to no institutional presence.
The real driver? A chronic housing shortage created by decades of restrictive zoning, permitting delays, and regulatory barriers.
Scapegoating investors may be politically convenient, but it distracts from the real issue: we don't build enough homes. Fix supply, and the rest follows.
Source: "America's Housing Crunch Has the Wrong Villain," American Enterprise Institute (AEI)
