“While institutional mega-investors own only a small fraction of the nation’s single-family rental stock overall, their ownership is heavily concentrated in fast-growing Sun Belt and Southern metros, where they control up to a quarter of the local single-family rental market in key areas like Atlanta and Jacksonville, amid ongoing debates over housing affordability and market power.”
Institutional Dominance in Key Sun Belt Markets
Institutional investors, often referred to as mega-investors when they hold more than 1,000 single-family homes, have built significant positions in specific U.S. metropolitan areas. These large-scale operators, including major players like Invitation Homes, American Homes 4 Rent, and Progress Residential, focus on regions with strong population growth, job expansion, and favorable rental demand.
Nationally, these mega-investors account for roughly 2-3% of the total single-family rental housing stock. However, their influence becomes far more pronounced in select high-growth markets, particularly across the South and Southwest. This concentration stems from strategic decisions to target areas with robust long-term rent appreciation potential and ample supply of suitable properties.
The highest levels of ownership by investors holding over 1,000 homes appear in the following metros (based on the most recent comprehensive estimates):
Atlanta-Sandy Springs-Alpharetta, GA : Approximately 25% of single-family rentals owned by mega-investors, with over 70,000 properties in institutional portfolios.
Jacksonville, FL : Around 21% market share in single-family rentals.
Charlotte-Concord-Gastonia, NC-SC : Nearly 18-20% of the single-family rental stock.
Tampa-St. Petersburg-Clearwater, FL : About 15% share.
Phoenix-Mesa-Chandler, AZ : Significant presence, around 13-14%, with strong institutional holdings.
Other notable areas : Dallas-Fort Worth-Arlington, TX; Houston-The Woodlands-Sugar Land, TX; and Orlando-Kissimmee-Sanford, FL, where shares range from 7-13%.
These Southern and Sun Belt cities account for a large portion of the nationwide holdings by mega-investors. For instance, roughly 45% of the portfolios of the largest operators are clustered in just six key markets: Atlanta, Phoenix, Dallas, Charlotte, Houston, and Tampa.
Why the Sun Belt?
Mega-investors gravitate toward these locations for several reasons:
Population and job growth : Fast-expanding metros attract new residents, supporting steady rental demand.
Affordable entry points post-recession : Many of these areas saw high foreclosure rates after the 2008 crisis, providing bulk purchase opportunities that institutional buyers could scale efficiently.
Newer housing stock : Institutional operators often prefer newer single-family homes, which are more prevalent in these growing regions and require less immediate maintenance.
Rental market dynamics : Higher expected rent growth and lower vacancy risks make these markets attractive for long-term holds.
In contrast, institutional presence remains minimal in many Midwest, Northeast, and other regions, where smaller “mom-and-pop” landlords continue to dominate.
Key Data on Mega-Investor Holdings in Top Metros
Here is a summary table of estimated shares in select major markets (drawn from analyses of institutional ownership patterns):
| Metropolitan Area | Estimated Share of Single-Family Rentals Owned by Mega-Investors (>1,000 homes) | Approximate Institutional Properties |
|---|---|---|
| Atlanta-Sandy Springs-Alpharetta, GA | 25% | 71,000+ |
| Jacksonville, FL | 21% | 17,000+ |
| Charlotte-Concord-Gastonia, NC-SC | 18% | 24,000+ |
| Tampa-St. Petersburg-Clearwater, FL | 15% | 22,000+ |
| Phoenix-Mesa-Chandler, AZ | 14% | 33,000+ |
| Dallas-Fort Worth-Arlington, TX | 7% | 27,000+ |
| Houston-The Woodlands-Sugar Land, TX | 7% | 23,000+ |
These figures highlight how institutional activity, while limited nationally, creates pockets of concentrated ownership that can influence local rental pricing and availability.
Broader Implications
This geographic focus has sparked discussions about market power in localized areas, where a few large landlords could potentially affect rent levels and competition. Recent policy attention, including proposals to limit further purchases by large institutional buyers, underscores ongoing concerns about housing accessibility in these high-demand regions.
Disclaimer: This is a news report based on available market analyses and data. It is for informational purposes only and not investment, legal, or financial advice.
