Report Release: Trends in Investor Acquisition of Residential Properties in New Jersey
Corporate ownership of single-family homes and other small residential properties has drawn growing concern from housing advocates and policymakers in New Jersey and nationally. While the large rental home companies that sprang up in the aftermath of the foreclosure crisis are virtually absent from New Jersey, prior research has found that corporate owners account for a rising share of property sales in Newark (Trout & Nelson, 2022) and of ownership of small residential properties in multiple jurisdictions across the state (New Jersey Department of Community Affairs, 2022). These trends have raised concerns about investors competing for the state’s already limited stock of moderately priced homes, making homeownership even harder to attain, and about rental conditions, as corporate landlords are often associated with stricter screening, higher rents and fees, and faster resort to eviction.
This report analyzes corporate ownership of 1–4-unit residential properties in New Jersey, excluding condominiums, using parcel-level property tax data from 2012 to 2022. It examines how the share of corporate-owned homes has changed over time, how corporate entities fit within the broader landscape of owner-occupants and non-corporate investors, and how properties have moved into corporate ownership, distinguishing the conversion of existing rentals from the loss of owner-occupied housing. The analysis also assesses portfolio size as a measure of market power and considers whether corporate owners are local, in-state, or out-of-state, raising questions about absentee ownership and accountability to tenants, neighborhoods, and municipalities.
Key Findings
- Although still under 4% of the stock statewide, corporate ownership of 1–4-unit residential properties more than doubled between 2012 and 2022.
- Corporate ownership is most heavily concentrated in urban centers and in some shore communities.
- About half of the properties that became corporate-owned between 2012 and 2022 had previously been owner-occupied, while roughly 30% had been owned by non-corporate investors.
- Among owner-occupied homes in 2012, many transitioned to investor ownership by 2022, with a notable share shifting to corporate ownership.
- Net growth in non-corporate investor ownership was modest, as many of their 2012 holdings converted to owner-occupancy by 2022.
- Not all growth in corporate ownership reflects loss of owner-occupied housing; in many municipalities it also reflects transfers among investors, including consolidation of existing rental stock.
- Corporate ownership grew fastest in municipalities that had lower home values and larger renter shares in 2012.
- Most corporate investors own only one or a few properties, but in some municipalities large portfolio holders account for a significant share of corporate-owned homes.
- Most corporate-owned properties are held by local or in-state owners, though out-of-state ownership is notably higher in shore communities and border areas.
Policy Recommendations
- Improve transparency and accountability: Require disclosure of beneficial owners, expand and standardize landlord registries, and strengthen enforcement so municipalities can identify and hold corporate landlords accountable.
- Protect homeownership opportunities: Give households and nonprofits a first chance to buy, expand down payment and rehab assistance, and support nonprofit intermediaries to keep homes affordable.
- Safeguard renters: Cap excessive fees, strengthen enforcement of rent stabilization and habitability standards, eliminate loopholes that exempt corporate-owned small properties from local protections, and penalize investors that leave properties neglected.
Together, these measures can help ensure that New Jersey’s small residential housing stock serves as a pathway to stable and affordable housing for both homeowners and renters, while avoiding blanket bans on corporate ownership that could unintentionally reduce the supply of well-managed rental housing.
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