The U.S. commercial real estate market, particularly rental housing, is undergoing a significant transformation fueled by the burgeoning renter population. This shift is most pronounced in the multifamily, build-to-rent (BTR), and student housing sectors. 2024 data and forecasts for 2025 and beyond indicate that these asset classes are attracting substantial interest from private equity firms and institutional investors.
“We are witnessing a resurgence of institutional capital flowing into the rental housing market,” observes Harvey Li, CEO of ELIM. “This is evident in their significant investments in multifamily and student housing. These investments include a growing interest in preferred equity as a financing solution to bridge capital gaps, the acquisition of financing platforms, and the formation of new joint ventures to create innovative debt products for acquisitions, refinancing, and new construction.”
Private Equity Firms Fueling Rental Housing Growth
In 2024, several private equity firms made substantial investments in multifamily, BTR, and student housing. Notable examples include Blackstone’s $3.5 billion acquisition of Tricon Residential, Pretium’s $1.5 billion purchase of D.R. Horton’s rental homes, KKR’s $2.1 billion multifamily portfolio acquisition, Scion Group’s $893 million acquisition of a student housing portfolio, Aion Partners and Goldman Sachs’ $1 billion joint venture in multifamily, and Brookfield’s recent $845 million purchase of a portfolio from Blackstone. These companies are strategically expanding their rental property portfolios in key U.S. markets to capitalize on the escalating demand for rental housing.
“Our family office and high-net-worth clients, particularly from Asia, are recognizing the post-election opportunities and the growing demand for rental housing driven by affordability concerns,” says Stanley Kung, Managing Director of ELIM. “They are beginning to allocate capital toward our income and growth portfolio strategy, with a focus on 2025 acquisitions, recapitalizations, and development of rental housing properties. We, along with our business partners, align investor interests with the recognition of the importance of stable, long-term income streams from rental properties.”
