Blackstone, the world’s largest alternative asset manager, is rapidly expanding its footprint in the U.S. housing market. With its recent $3.5 billion acquisition of Tricon Residential, the firm has solidified its position as the third-largest institutional landlord of single-family rental homes in the country. This aggressive expansion comes amid growing concerns from housing advocates, policymakers, and tenants, who argue that Blackstone’s increasing market concentration could worsen housing affordability and displace renters.
Blackstone’s Major Housing Investments
A Return to Single-Family Rentals
Blackstone’s recent acquisitions are a dramatic return to the single-family rental market. After selling its stake in Invitation Homes in 2019, many believed the firm had exited the space for good. However, in 2021, Blackstone made a $6 billion purchase of Home Partners of America, adding 17,000 single-family rental homes to its portfolio. The recent Tricon acquisition, announced in January 2024 and finalised in May, adds approximately 38,000 additional homes, bringing Blackstone’s total single-family rental holdings to nearly 66,000 homes.
According to data from Parcl Labs, Blackstone’s single-family portfolio is concentrated in key Sun Belt markets, where population growth and rental demand have surged in recent years. The firm’s largest holdings are in:
- Atlanta (11,144 homes)
- Dallas (5,172 homes)
- Charlotte (4,710 homes)
- Tampa (3,949 homes)
- Phoenix (3,801 homes)
These markets are particularly attractive to institutional investors due to their strong job growth, relatively low property taxes, and favourable landlord regulations.
Continued Expansion in Commercial Real Estate
Blackstone’s real estate empire extends beyond residential properties. The firm has aggressively expanded its commercial real estate holdings, completing the $4 billion privatisation of Retail Opportunity Investments Corp. (ROIC) in February 2025. ROIC, a major owner of grocery-anchored shopping centres on the West Coast, was delisted from public markets following the acquisition.
Blackstone has also sought to diversify its office real estate holdings, recently securing an $800 million loan for a high-profile New York office tower acquisition. However, analysts warn that Blackstone’s exposure to the struggling office sector—where vacancy rates have risen due to remote work trends—could pose risks to its overall real estate portfolio.
Impacts on the Housing Market
Increased Market Concentration and Fewer Housing Options
With Blackstone controlling nearly 66,000 single-family rental homes, critics worry that the firm’s market power could reduce housing competition, making it harder for individual buyers and smaller landlords to compete. According to data from Parcl Labs, institutional investors own around 1% of the total U.S. single-family housing stock, but in key markets like Atlanta and Charlotte, institutional ownership is significantly higher.
Housing advocates argue that large-scale corporate ownership creates an “anti-competitive” rental market, where tenants have fewer choices and less bargaining power. The Private Equity Stakeholder Project (PESP) has called for greater scrutiny of Blackstone’s acquisitions, warning that consolidation could drive up rent and worsen the nation’s affordability crisis.
Rising Rent and Affordability Concerns
Blackstone has a track record of aggressively raising rent. A 2023 report from PESP found that Blackstone had increased rents in some units by as much as 64% following acquisitions. In San Diego, Blackstone raised rents by 43% to 64% in certain units over two years, according to a report by the Alliance of Californians for Community Empowerment (ACCE).
In North Carolina, Tricon Residential—which Blackstone acquired—had already been raising rents at rates above the local average. Between 2017 and 2022, Tricon raised rents in Charlotte by 28%, compared to a 19% increase for other single-family rentals in the area. Local officials have cited Tricon’s practices as contributing to the region’s affordable housing shortage.
With Blackstone now in control of Tricon’s portfolio, many tenants worry about the possibility of further rent hikes. In Los Angeles, labour and housing advocacy groups, including UNITE HERE Local 11 and AFSCME Local 3299, have urged pension funds to oppose Blackstone’s acquisition of Tricon unless the firm guarantees tenant protections.
Community and Economic Impact
Potential Benefits: Housing Supply and Property Improvements
Despite concerns over affordability, Blackstone argues that its investments will help expand housing supply and improve the quality of rental properties. Following the Tricon acquisition, Blackstone committed to completing a $1 billion development pipeline for new single-family rental homes in the U.S. and a $2.5 billion multifamily development initiative in Canada.
The firm has also pledged to invest $1 billion in capital improvements for existing single-family rental homes, with the goal of upgrading units and improving maintenance services. At Tricon Twelve Bridges, a new development in Sacramento, Blackstone-backed Tricon has introduced solar-powered homes with energy-efficient features such as electric vehicle chargers and tankless water heaters.
In some regions, local leaders have welcomed Blackstone’s expansion. In Lincoln, California, Mayor Dan Karleskint praised the addition of new homes, stating that the development “contributes to the diversity of high-quality housing options” in the area.
Potential Downsides: Displacement and Gentrification
While Blackstone touts its investment in housing supply, critics argue that the firm’s acquisitions have historically displaced long-term renters and working-class families. Advocacy groups have documented cases where tenants were forced out due to rent increases or eviction filings.
A 2022 Blackstone initiated evictions against tenants who were behind on just one month’s rent. In Los Angeles, a local TV report highlighted a case where a tenant’s rent increased by $800 after Blackstone’s Invitation Homes took over the property. Similar reports have surfaced in Charlotte, San Diego, and Phoenix.
In addition, concerns about gentrification have emerged in rapidly growing markets. Blackstone’s focus on high-growth Sun Belt cities means that long-term residents—particularly low- and middle-income renters—may be priced out as rents rise.
Regulatory and Policy Considerations
In response to Blackstone’s growing influence, housing advocates and policymakers are calling for stronger tenant protections and increased regulatory oversight. Proposals include:
- Rent control measures: Some lawmakers are pushing for expanded rent stabilisation policies to prevent excessive rent increases.
- Stronger tenant protections: Advocacy groups are urging Blackstone to adopt fairer leasing practices, including clearer billing policies and improved maintenance services.
- Limits on corporate ownership: Some housing experts have proposed restrictions on institutional investors buying large numbers of single-family homes to preserve homeownership opportunities for individuals.
The Los Angeles County Employees Retirement Association (LACERA) has been urged to use its influence to demand better protections for tenants living in Blackstone-owned properties. The Private Equity Stakeholder Project has similarly called on pension funds to push for responsible landlord practices.
Conclusion
Blackstone’s rapid expansion in the single-family rental market signals a broader trend of institutional investors consolidating their hold over the U.S. housing sector. While the firm argues that its investments will increase housing supply and improve rental properties, its history of rent hikes, evictions, and maintenance issues raises concerns for tenants and housing advocates.
The debate over corporate ownership of housing will only intensify As Blackstone cements its role as a dominant landlord.