Key Takeaways
- BlackRock will not be shopping for all the homes—massive buyers personal solely a small share of single-family leases nationwide, although their presence is bigger in some native markets.
- Rising rents are pushed extra by housing shortages, inflation, and alleged value coordination than by anyone firm’s technique, although concentrated possession can nonetheless affect native affordability.
The viral declare that BlackRock is shopping for up all the homes isn’t correct—however it’s rooted in actual points. Rising rents, restricted housing provide, and Wall Avenue’s rising footprint in the actual property market have fueled confusion about who’s accountable.
Professor Eric Seymour of Rutgers College says the claims have fueled “imprecision across the problem, partly stemming from the confusion between Blackstone and BlackRock, for example.”
Blackstone is a non-public fairness agency that acquired hundreds of properties following the 2008 monetary disaster. BlackRock is an asset supervisor that invests on behalf of purchasers—and owns little or no actual property instantly.
Why This Issues to You
For those who’re renting or making an attempt to purchase a house, understanding what’s actually driving costs—like provide shortages and company pricing ways—may also help you perceive the forces shaping your choices.
The Fable: Why BlackRock Turned the Scapegoat
This rumor persists as a result of it combines two real considerations—rising rents and Wall Avenue’s position in housing—right into a single, simple goal. However the details are extra complicated.
Individuals usually confuse BlackRock with Blackstone. After the 2008 crash, Blackstone acquired a lot of foreclosed properties and spun off Invitation Houses, one of many largest single-family landlords in the USA. BlackRock, in distinction, manages cash for purchasers—primarily by way of index and exchange-traded funds (ETFs)—and doesn’t instantly personal a lot rental property.
That hasn’t stopped the narrative from spreading. In actual fact, Blackstone tried to set the file straight in 2019, stating that Invitation Houses represented solely 0.1% of single-family properties within the U.S.
So, no, BlackRock isn’t shopping for “all the homes.” And whereas Blackstone and friends don’t dominate U.S. housing total, their presence could be very actual in some native markets and subsectors.
What’s Really Driving Lease Will increase?
There is not any single trigger. Seymour highlights a major housing scarcity, with rising labor, materials, and financing prices hindering the event of latest provide.
However even when provide improves, alleged rent-fixing schemes can hold costs excessive. In 2025, New York and different states sued Zillow and Redfin for allegedly colluding to keep away from competitors. And in August 2024, the U.S. Justice Division sued RealPage over claims of algorithm-driven hire fixing.
Renee Tapp, an assistant professor on the College of North Carolina at Chapel Hill, notes that latest hire dynamics additionally replicate “concentrated possession resulting in market energy and the flexibility to exert market energy by way of costs,” as seen within the case of RealPage. Briefly, when a handful of companies management an enormous share of comparable models in the identical submarket—and share pricing intelligence—tenants might face fewer real decisions and stickier costs.
How A lot Do Large Landlords Actually Personal?
Regardless of the headlines, institutional buyers personal solely a small share of the market. A 2022 City Institute research discovered they held about 574,000 single-family leases—simply 3.8% of the 15.1 million nationwide.
The affect is extra seen in particular metro areas. In Atlanta, for instance, massive institutional house owners managed about 25% of single-family leases in 2022.
“Housing is like actual property brokers say—it’s location, location, location,” Seymour says. Even when company landlords maintain solely a small share nationally, their presence will be important in neighborhoods the place first-time patrons as soon as had higher entry.
The Backside Line
BlackRock will not be shopping for up all of the properties in America. Massive buyers personal solely a fraction of single-family leases, though in hotspots like Atlanta, their share is considerably greater. Rising rents have extra to do with housing shortages, inflation, and excessive borrowing prices.
