01/14/2026
In Knoxville and Knox County, how many houses are owned by Hedge Funds/Institutional Investors - 500, 1,000, more than 2,000? You can start with American Homes 4 Rent. They own 300-400. How will President Trump's proposal to stop all future purchases by hedge funds/institutional investors impact the Knoxville Market? If the corporate owners are required to sell and they then provide owner financing, what does that do to the market and how will you compete?
If you know it is coming - it is not a surprise.
Monday, on Bloomberg, Stephen Scherr, Co-President of Pretium Partners (owners of Progress Residential, one of the largest single-family rental operators with over 100,000 homes), shared a compelling analysis on how private capital can transform housing affordability.
Key takeaways:
- Addressing Trump's Proposal: Scherr responded to President Trump's recent push to restrict institutional investors from buying more single-family homes, arguing it could exacerbate supply shortages since institutions own just 1-3% of the market but invest heavily in maintenance and new builds.
- Rent-to-Own as a Game-Changer: He highlighted expanding rent-to-own programs where part of your rent builds equity toward buying the home. This helps renters (like millennials or gig workers) overcome credit barriers and high down payments, potentially boosting homeownership rates from the current ~65%.
- Private Capital's Value: Institutions professionalize rentals in suburban neighborhoods with good schools, using data analytics for better management and securitizing rents to attract more investment. Without them, smaller landlords might struggle to scale, worsening the ~1.5-2M annual home shortage.
Scherr proposed industry-government partnerships, like tax incentives or Fannie Mae/Freddie Mac backing, to scale these models nationally. This could stabilize neighborhoods and convert renters to owners without slashing inventory.
What do you think? Could rent-to-own remake the market, or is a ban on big investors the way? Drop your thoughts below!
wsj.com
(Video link: https://www.bloomberg.com/news/videos/2026-01-12/trump-bid-to-ban-corporate-homebuying-blindsides-wall-st-video )
Stephen Scherr, Pretium Co-President speaks with Tim Stenovec and Emily Graffeo about housing affordability being top 2026 issue for the Trump administration. (Source: Bloomberg)
