Blackstone’s Big Bet on Housing

Blackstone, one of the world’s largest private equity firms, has re-entered the housing market with a vengeance. Through its Blackstone Real Estate Income Trust (BREIT), the firm has an ownership interest in at least 274,859 rental housing units as of June 16, 2025, with a focus on high-growth regions like the U.S. Sun Belt and coastal cities. This portfolio, valued at roughly $55 billion, is a slice of Blackstone’s massive $315 billion real estate empire, which it has been building since 1991.

The firm’s strategy is clear: follow job and population growth. “There tends to be a high degree of consistency across our different pools of capital,” said Kathleen McCarthy, global co-head of Blackstone Real Estate, in an interview with CNBC. “Really what we try to follow across the globe is job and population growth.” By targeting areas with booming economies, Blackstone is positioning itself to capitalize on rising demand for rentals.

But this isn’t Blackstone’s first rodeo. After the 2008 financial crisis, the firm became the largest owner of single-family homes through Invitation Homes, only to sell that business later. In 2021, it re-entered the market by acquiring Home Partners of America, and in 2024, it added Tricon Residential, bringing its single-family home portfolio to about 58,000 homes.

Why Now? The Economics of Buying Over Building

Blackstone’s timing is no accident. “Buying is still cheaper than building in many markets, as is typical at the start of a new cycle,” said Will Pattison, head of real estate research at MetLife Investment Management. “This is limiting construction and supporting rent growth.” With construction costs high and new housing starts lagging, purchasing existing homes is a cost-effective way for Blackstone to expand its portfolio. This strategy not only secures assets at a lower cost but also positions the firm to benefit from rising rents in supply-constrained markets.

The firm’s investments aren’t just about single-family homes. Blackstone is also diving into apartments, mobile home parks, student housing, and even affordable housing through its April Housing initiative, which manages about 70,000 government-subsidized units. The goal? To become the largest provider of affordable housing in the U.S. while generating returns for investors.

The Impact on Renters and Homebuyers

For renters, Blackstone’s growing footprint raises concerns about affordability. While the firm owns less than 1% of the 46 million rental homes in the U.S., its influence is significant in certain markets. In the Sun Belt, where housing inflation has outpaced national averages, corporate landlords like Blackstone have been linked to rising rents. A 2023 CNBC report noted that institutional investors, including Blackstone, could control 40% of U.S. single-family rental homes by 2030, potentially giving them significant pricing power.

Critics argue that Blackstone’s practices exacerbate the housing crisis. Posts on X have accused the firm of driving up rents and engaging in aggressive evictions, with some citing a UN report on exploitative practices. In New York City, tenants at Blackstone’s Stuyvesant Town–Peter Cooper Village complex successfully sued in 2021 to keep 6,000 units under rent regulation, highlighting tensions between corporate landlords and renters.

For homebuyers, the picture is equally grim. Institutional investors like Blackstone, with their deep pockets, can outbid individuals in competitive markets. “It’s almost a captive market,” said Jordan Ash of the Private Equity Stakeholder Project. “They’ve been very explicit about how people are shut out of the homebuying market and are going to be perpetual renters.” With only 0.24% of the 147 million residential units in the U.S. owned by firms like Blackstone, their impact is concentrated in key regions, making it harder for first-time buyers to compete.

Blackstone argues that its investments benefit the housing market. By renovating properties, the firm claims it improves quality and adds supply. Its affordable housing initiatives, like April Housing, aim to preserve units for low-income renters through tax credit programs. “In every market where we operate, we own less than 1% of the housing available,” McCarthy told CNBC, downplaying the firm’s market dominance.

Supporters also point out that corporate investment can stabilize markets by injecting capital and addressing supply shortages. Blackstone’s scale allows it to move quickly, acquiring properties that might otherwise sit vacant or deteriorate.

What It Means for the Future

The rise of corporate landlords like Blackstone could reshape the U.S. housing landscape. For renters, it may mean higher costs and less negotiating power, especially in high-demand areas. For homebuyers, the competition from institutional investors could make the dream of ownership even more elusive, particularly if interest rates drop and the market heats up again. One X user noted, “The second interest rates go down below 4% again, it will go crazy,” reflecting widespread concern about a frenzied market.

Policymakers are taking notice. In 2022, lawmakers introduced the Stop Wall Street Landlords Act to curb private equity’s influence in housing. As debates over rent control and affordable housing intensify, Blackstone’s moves will remain under scrutiny.

Conclusion: A Balancing Act

Blackstone’s return to the housing market is a calculated bet on America’s growth regions, driven by economic trends and a constrained supply. While the firm’s investments may improve properties and add some housing stock, they also fuel fears of rising rents and reduced homeownership opportunities. For the average American, the question remains: in a market increasingly dominated by corporate giants, will there be room for the individual to thrive? As Blackstone’s portfolio grows, so does the urgency to address the housing crisis before it locks out an entire generation.