Private Equity Firms Own Nearly One-Third of Atlanta Area Apartments
New data shows private equity firms control over 30% of Atlanta metro apartments as part of a nationwide buying spree affecting housing costs.
ATLANTA, GEORGIA — Private equity firms own nearly 3 million apartment units across the United States, representing about 13% of all apartments nationwide. The Atlanta metropolitan area ranks among the top markets for such ownership, according to a new analysis released Tuesday.
The Private Equity Stakeholder Project found that private equity companies control more than 30% of apartment units in the Atlanta metro area, placing it alongside Austin, Texas; Charlotte, North Carolina; Dallas-Fort Worth; and Orlando, Florida, as markets with the highest concentration of private equity ownership.
The data reveals an accelerating trend, with most purchases occurring recently. Private equity firms acquired more than 1.7 million units, or 57% of their total holdings, since 2018. About 45% of all private equity-owned apartments were purchased since 2021.
Georgia Among Top States for Private Equity Ownership
Georgia ranks as one of 10 states where more than two-thirds of all private equity-owned apartments are located. Private equity firms own nearly one in three apartment units statewide in Georgia, according to the analysis.
The complete list of top states includes Texas, Florida, California, Georgia, North Carolina, Colorado, New York, Arizona, Virginia and Washington. Texas leads with the highest number of private equity-owned apartments, featuring more than 1,900 properties and nearly 580,000 units.
Connection to Rising Housing Costs
The report identified a correlation between private equity ownership and increasing numbers of cost-burdened renters. Many states with the highest private equity ownership have experienced significant increases in renters who spend at least 30% of their income on rent and utilities.
Arizona, Nevada, Georgia, Texas and Florida were among the six states with the largest increases in cost-burdened renters, the analysis found. This pattern suggests a potential connection between private equity ownership and rising housing affordability challenges.
Private equity firms operate by using pooled investments from funds, endowments and wealthy individuals to buy controlling stakes in companies. Their typical strategy involves maximizing property value through cost-cutting measures before selling at a profit.
The Private Equity Stakeholder Project’s analysis provides insight into how financial firms have increasingly dominated the rental housing market, particularly in growing metropolitan areas like Atlanta where demand for apartments remains strong.
