And most have been fairly recent purchases. The companies acquired more than 1.7 million of those, or 57%, since 2018, and about 45% of them since 2021, the report found.
More than two-thirds of those units are located in just 10 states: Texas, Florida, California, Georgia, North Carolina, Colorado, New York, Arizona, Virginia and Washington.
Texas has the highest number of private equity-owned apartments, the analysis said, with more than 1,900 properties and nearly 580,000 units.
Private equity firms own nearly 1 in 3 apartment units in Georgia and almost 1 in 4 in North Carolina, the report found.
Private equity firms use pooled investments from funds, endowments and wealthy individuals to buy a controlling stake in a company, try to maximize its value — often by cutting costs — and then sell it at a profit.
The metropolitan areas of Atlanta; Austin, Texas; Charlotte, North Carolina; Dallas-Fort Worth; and Orlando, Florida, have private equity ownership shares above 30%.
Many of the states with the highest private equity ownership also have seen some of the largest increases in “cost-burdened” renters, the report said, meaning they spend at least 30% of their income on rent and utilities. Arizona, Nevada, Georgia, Texas and Florida were among the six states with the biggest increases in such renters.
Stateline reporter Robbie Sequeira can be reached at rsequeira@stateline.org.
This story was originally produced by Stateline, which is part of States Newsroom, a nonprofit news network which includes Virginia Mercury, and is supported by grants and a coalition of donors as a 501c(3) public charity.
