Su 2021; Goodman et al. 2023; Raymond et al. 2018). 1 Concentrations of IISFR holdings in majority-Black neighborhoods could be problematic for several reasons, including the possibility of further limiting the starter home stock for Black purchasers and exacerbating existing racial disparities in homeownership.

There are open questions as to whether IISFR units contribute to the continued undersupply of affordable single-family homes (Lambie-Hanson, Li, and Slonkosky 2019). Anecdotal evidence suggests that institutional investors add competition to the homebuying market, pushing owner-occupant buyers out (Charles 2020; Chilton et al. 2018). On the other hand, given the tightening of the credit box since the Great Recession, many households that rent from institutional owners would likely not qualify for a mortgage. Amherst Residential estimates that 85 percent of its SFR residents would not qualify for a mortgage given their current credit scores, incomes, and wealth (Amherst Capital Management 2021). Another recent study of a legal ban on buy-to-let investments in the Netherlands found that while institutional investment decreased and the share of first-time homebuyers rose, the subsequent reduction in the rental housing stock resulted in rental price increases (Francke et al. 2023).