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> Institutional investors own the vast majority of rental units This is what I mean about left-wing science denialism. Try even reading your own article 1. "A

> Institutional investors own the vast majority of rental units This is what I mean about left-wing science denialism. Try even reading your own article 1. "According to the RHFS, individual investors were the biggest group in the rental housing market in 2015, accounting for 74.4 percent, or 16.7 million rental properties, followed by limited liability partnerships (LLPs), limited partnerships (LPs), or limited liability companies (LLCs) (14.8 percent);" This is literally the exact opposite of your claim. But let's pretend that your claim was correct: 2. They're price takers. 3. Why is this a bad thing? If this were true (it isn't), then they're basically the only people who will rent at all anymore. The alternative is net worse for affordability - places without institutional investors have far fewer shares of people renting because there is literally nobody offering places for rent. e: And of course I'm downvoted simply for pointing out that the article linked says the opposite of the claim.

mcphage 3y ago
> "According to the RHFS, individual investors were the biggest group in the rental housing market in 2015, accounting for 74.4 percent, or 16.7 million rental properties, followed by limited liability partnerships (LLPs), limited partnerships (LPs), or limited liability companies (LLCs) (14.8 percent);" Isn't the very next sentence "However, because the share of rental properties owned by individual investors tends to decrease with the property size, individual investors owned less than half (47.8 percent) of rental units, followed by LLPs, LPs, or LLCs (33.2 percent), trustees for estates (3.3 percent), real estate corporations (3.3 percent), and nonprofit organizations (3.2 percent)." Which makes it seem like the article is claiming the number is 52.2%—somewhere in between your original claim of 3%, and the GP's claim of 74.4%.
- whimsicalism 3y ago
  Their claim: > Institutional investors own the vast majority of rental units False - individual investors + trustees own the majority. Institutional investors are nowhere close to the size of a 'vast majority', especially when you consider that many individual investors choose to work through LLCs. My claim: > Institutional investors own less than 3% of rental homes This is referring to single-family homes - I could probably have been more explicit when using the term 'home' above, but I was also replying to a comment specifically about SFH so I thought it was obvious from context. Probably most of the discrepancy comes from 'institutional investor' not being a well defined term. If we are discussing megacorp, it is closer to the 3% number I have mentioned. If we are discussing mom & pop operating behind LLC, it is likely higher.
  - Guvante 3y ago
    Irvine Company LLC is owned by David Bren who is worth $15.3 billion. It is not as easy as "only C Corps are big"...
Guvante 3y ago
You were down voted for everything except that. Especially since the linked article says it is >50% per unit which supports my point. So big investors are good for housing because they increase demand for housing driving up the price because they offer rentals? You are pretending that the investors are providing the housing here while ignoring that they are taking away housing that would be available. Investors building units provide housing. Investors buying housing and renting it out do not.
- whimsicalism 3y ago
  > Especially since the linked article says it is >50% per unit which supports my point. I don't think it's productive so I'm not going to continue responding to you but I encourage anyone looking at this thread to actually read the article as this person is just blatantly mis-stating it repeatedly. It says that institutional investors are 14.8% of properties and ~36% of units or less. Neither of these are '>50% per unit', nor are they '77.4% of rental units', nor are they a 'vast majority of rental units', all of which have been stated at various times by this commentator.
  - Guvante 3y ago
    You exclude LLC but Irvine Company LLC is a multi billion dollar company (wholly owned by someone worth $15.8b) that has hundreds of buildings and tens of thousands of units (maybe over a hundred thousand, counting is hard).
  - tzs 3y ago
    > I'm not going to continue responding but I encourage anyone looking at this thread to actually read the article as this person is just blatantly mis-stating it repeatedly. You are each failing to actually read what the other is writing. One of you is talking about properties and one of you is talking about units. Individual investors account for 74.4% of properties, according to the article you two are both citing: > According to the RHFS, individual investors were the biggest group in the rental housing market in 2015, accounting for 74.4 percent, or 16.7 million rental properties but institutional investors own a majority of the units: > Institutional investors own a growing share of the nation’s 22.5 million rental properties and a majority of the 47.5 million units contained in those properties In addition, you are using a different definition of "institutional investor" than the article.

mcphage 3y ago

> "According to the RHFS, individual investors were the biggest group in the rental housing market in 2015, accounting for 74.4 percent, or 16.7 million rental properties, followed by limited liability partnerships (LLPs), limited partnerships (LPs), or limited liability companies (LLCs) (14.8 percent);" Isn't the very next sentence "However, because the share of rental properties owned by individual investors tends to decrease with the property size, individual investors owned less than half (47.8 percent) of rental units, followed by LLPs, LPs, or LLCs (33.2 percent), trustees for estates (3.3 percent), real estate corporations (3.3 percent), and nonprofit organizations (3.2 percent)." Which makes it seem like the article is claiming the number is 52.2%—somewhere in between your original claim of 3%, and the GP's claim of 74.4%.

whimsicalism 3y ago
Their claim: > Institutional investors own the vast majority of rental units False - individual investors + trustees own the majority. Institutional investors are nowhere close to the size of a 'vast majority', especially when you consider that many individual investors choose to work through LLCs. My claim: > Institutional investors own less than 3% of rental homes This is referring to single-family homes - I could probably have been more explicit when using the term 'home' above, but I was also replying to a comment specifically about SFH so I thought it was obvious from context. Probably most of the discrepancy comes from 'institutional investor' not being a well defined term. If we are discussing megacorp, it is closer to the 3% number I have mentioned. If we are discussing mom & pop operating behind LLC, it is likely higher.
- Guvante 3y ago
  Irvine Company LLC is owned by David Bren who is worth $15.3 billion. It is not as easy as "only C Corps are big"...

Guvante 3y ago

You were down voted for everything except that. Especially since the linked article says it is >50% per unit which supports my point. So big investors are good for housing because they increase demand for housing driving up the price because they offer rentals? You are pretending that the investors are providing the housing here while ignoring that they are taking away housing that would be available. Investors building units provide housing. Investors buying housing and renting it out do not.

whimsicalism 3y ago
> Especially since the linked article says it is >50% per unit which supports my point. I don't think it's productive so I'm not going to continue responding to you but I encourage anyone looking at this thread to actually read the article as this person is just blatantly mis-stating it repeatedly. It says that institutional investors are 14.8% of properties and ~36% of units or less. Neither of these are '>50% per unit', nor are they '77.4% of rental units', nor are they a 'vast majority of rental units', all of which have been stated at various times by this commentator.
- Guvante 3y ago
  You exclude LLC but Irvine Company LLC is a multi billion dollar company (wholly owned by someone worth $15.8b) that has hundreds of buildings and tens of thousands of units (maybe over a hundred thousand, counting is hard).
- tzs 3y ago
  > I'm not going to continue responding but I encourage anyone looking at this thread to actually read the article as this person is just blatantly mis-stating it repeatedly. You are each failing to actually read what the other is writing. One of you is talking about properties and one of you is talking about units. Individual investors account for 74.4% of properties, according to the article you two are both citing: > According to the RHFS, individual investors were the biggest group in the rental housing market in 2015, accounting for 74.4 percent, or 16.7 million rental properties but institutional investors own a majority of the units: > Institutional investors own a growing share of the nation’s 22.5 million rental properties and a majority of the 47.5 million units contained in those properties In addition, you are using a different definition of "institutional investor" than the article.