Lessors of Residential Buildings NAICS 531110

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Industry Summary
The 54,300 lessors of residential buildings and dwellings in the US lease single-family homes, apartment buildings, and town homes. The industry includes owner-lessors and firms that rent real estate and subsequently sublet property to others.
Vulnerability to Trends in the Housing Market and Economy
The housing market is cyclical, and market conditions affect property income and values and the ability to collect rent.
Capital-Intensity of Operations
The residential owner-lessor business is extremely capital intensive.
Recent Developments
Aug 18, 2025 - Renters Drive Household Formations
- Renters were the sole driver of the rise in household formations in the second quarter of 2025, according to the Census Bureau’s most recent Housing Vacancy Survey (HVS) and the National Association of Home Builders (NAHB). In Q2 2025, the total number of US households increased to 132.5 million, up by 1.2 million compared to 131.3 million in the second quarter of 2024. The increase in new households was entirely driven by renters, amid the lowest homeownership rate since 2019. US homeownership fell to 65% of total households in Q2 2025 and was 4.2 percentage points below the 25-year average of 66.3%. High home prices, elevated mortgage rates, and low inventories have pushed housing affordability to the lowest level in decades.
- So far in 2025, small investors are playing an outsized role in the U.S. single-family housing market, according to The Wall Street Journal. In the first half of 2025, small investors accounted for about 25% of home purchases, outpacing large institutional buyers, according to property analytics firm Cotality. While traditional home buyers remain sidelined by high home prices and interest rates, small investors are capitalizing on seller incentives. Unlike large firms constrained by institutional reporting, smaller investors can take greater risks and are increasingly targeting mid-priced homes to renovate and rent. An uptick in the percentage of homes sold to small investors could boost demand for residential remodeling as investors buy and fix up homes for flipping or renting.
- National rent trends showed modest growth in July, according to Yardi Matrix and reporting by Multifamily Dive. The average U.S. rent rose by $2 to $1,754 in July, while year-over-year rent growth held steady at 0.7%, continuing a 20-month streak of subdued gains. Rent changes were evenly split across the top 30 metros, with the Midwest and Northeast leading in increases—though previously strong performers like Indianapolis and Kansas City, Missouri, began to cool. Meanwhile, markets like San Francisco and Austin are rebounding from prolonged declines, with Austin still posting the lowest YOY growth at -4.6% despite a slight monthly uptick. Strong demand and absorption of new units are supporting rent growth nationally, though high lease-up inventory and ongoing construction—about 1 million units—are tempering upward rent trends.
- The Trump administration’s proposed $27 billion cut to federal rental assistance programs—amounting to a 43% reduction—has triggered concern across the affordable housing sector, stalling projects and shaking lender confidence, according to The Wall Street Journal. Some developers have halted construction due to postponed Section 8 subsidies, while lenders cite uncertainty over HUD funding as a significant deterrent. Although the House Appropriations Committee rejected the overhaul, HUD continues lobbying for the cuts, which would slash its budget by 44%. Critics warn that the move could destabilize the housing system, jeopardizing billions in multifamily loans and undermining gains from recent tax law changes that expanded the Low-Income Housing Tax Credit. Despite these incentives, developers argue that new affordable units may lack the operating revenue to remain viable without voucher programs.
Industry Revenue
Lessors of Residential Buildings

Industry Structure
Industry size & Structure
The average residential lessor operates out of a single location, employs about 7 workers, and generates $2.8 million in annual revenue.
- The residential lessor industry consists of about 54,300 firms that employ 369,300 workers and generate over $153.5 billion annually.
- The industry has a low level of concentration; the top 50 companies account for about 30% of industry revenue.
- Large firms with residential lessor operations include Essex Property Trust, AvalonBay Communities, Equity Residential, and Mid-America Apartment Communities. Some large firms are vertically integrated and operate as residential real estate developers.
- Despite the size of the industry, many large firms operate regionally.
Industry Forecast
Industry Forecast
Lessors of Residential Buildings Industry Growth

Source: Vertical IQ and Inforum
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