In cities.The impact of buying single-family homes on Wall Street on rental prices in cities after the Great Recession

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By 2030, institutional investors could control up to 40 percent of single-family rental homes in the U.S., according to MetLife Investment Management. However, a group of lawmakers from Washington, D.C., argues that Wall Street should pull back from the market. "We're saying private equity should not be buying single-family homes," said Rep. Ro Khanna, a Democrat representing California's 17th congressional district.'''Khanna is the lead author of the Stop Wall Street Landlords Act of 2022. "It's unacceptable that your tax dollars are helping Wall Street buy single-family homes," he told CNBC.

The single-family home rental industry received government support after the 2008 financial crisis. "It was a rare opportunity that attracted institutions to build a portfolio of these foreclosed properties," said Steven Xiao, an assistant professor of finance and managerial economics at the University of Texas at Dallas.

Since the early 2010s, Tricon Residential, Progress Residential, American Homes 4 Rent and Invitation Homes have bought thousands of homes. In some cases, they have also increased the housing supply by building rental communities.

Some of these companies''are funded by private equity funds like Blackstone and investment managers like Pretium Partners.

"It's pretty much a closed market," said Jordan Ash, director of labor, jobs and housing at the Private Equity Stakeholder Project. "They've clearly stated that people are being pushed out of the home buying market and will be perpetual renters. "

These appeals followed severe inflation in the housing market in many Sun Belt states, including Texas, Florida and Georgia, according to the National Association of Realtors. Rental prices in some Sun Belt markets have exceeded national rental inflation rates. From January 2020 through January 2023, the cost of renting a two-bedroom detached home increased about 44 percent in Tampa,''Florida, up 43% in Phoenix and 35% in the Atlanta suburbs, which compares to a 24% increase nationwide.

The industry's advocates say they don't have enough market share to dictate prices in any market. By early 2022, large institutions owned about 5% of the nation's 14 million single-family rental homes, according to analysts.

By 2030, institutions could own about 7.6 million homes, or more than 40 percent of all single-family rental homes in the market, according to a 2022 forecast from MetLife Investment Management.

In the near term, however, some companies may pull back on real estate investments because of growing concerns about adjustments. "You'll see us selling," said John Gray, Blackstone's chief operating officer, in''CNBC interview in December 2022.

Watch the video above to learn about the rise and future of corporate landlords in the United States.