Monday, May 18, 2026

Private Equity and Affordable Housing

 

Private Equity and Affordable Housing

Private equity, as well as other institutional investors (to a lesser extent), don't actually own that much of the single family rental supply (estimates range from 3-4%). In some Sun Belt markets, estimates range from 10-20%.

A concerning issue is where private equity is buying up mobile home parks. This is a gross example of predatory investing. Recently, all institutional investors accounted for about 1/4 of all mobile home park purchases.

I guess the typical scenario is where investors buy up the properties, then raise the rents for the lots, maybe several times over a period of years, then sell the properties for a profit. Mobile homes are very expensive to relocate, so the owners don't really have options. 

About half of these are financed through government-backed programs. So, one way to remedy this would be to prohibit that. Or, just make it illegal for institutional investors to invest in this type of real estate.




Lobbying and Revolving Door Politics

  In 2021, Biden signed Executive Order 13989, which had several protections against harmful lobbying and revolving door practices. This was...