The Federal Trade Commission (FTC) has issued a request for public comment regarding potential orders aimed at understanding the impact of large-scale single-family rental owner operators, referred to as mega investors, on home prices and rents within the single-family rental market.

The FTC's decision involves authorizing staff to publish a Federal Register Notice seeking public input on potential 6(b) orders. These orders would inform an FTC study focused on mega single-family rental investors, defined as entities owning more than 1,000 single-family rental homes.

The proposed 6(b) orders aim to gather information from over 30 mega investors about their corporate structure, housing inventory details, rental income, business strategies, competition, pricing, and expenses.

"As Americans face a housing shortage and pay soaring rents, it’s vital to understand the role played by large institutional investors," stated FTC Chair Lina M. Khan. "This proposed study would shed much-needed light on the mega-investors that have amassed huge portfolios of single-family rental units and potentially contributed to the housing challenges that Americans face."

Hannah Garden-Monheit, Director of the Office of Policy Planning, expressed concerns: "The rise in mega corporate landlords has deeply troubling implications for renters. The FTC is committed to uncovering the scope of these large corporations’ holdings and their effects on housing costs."

Public comments are sought on various aspects of the potential orders directed at mega investors. This includes feedback on which entities qualify as mega investors and suggestions for improving data collection while minimizing burdens on recipients.

Should these 6(b) orders be issued, the FTC plans to release a comprehensive property list linking individual properties with their owner entities based on collected data. The findings will help assess how mega investors influence house prices and rent rates amid industry consolidation.

Comments will be reviewed before submitting a request for review by the Office of Management and Budget under the Paperwork Reduction Act.

The shift in market dynamics post-2007-2008 financial crisis saw large-scale investors acquiring significant regional inventories in the single-family rental home sector. Researchers estimate that such investors own approximately 446,000 homes nationwide.

This initiative follows growing concern among policymakers about mega investor growth in local markets. Public feedback highlighted issues related to large investor acquisitions affecting local housing markets across the U.S., following an earlier FTC and DOJ inquiry into serial acquisitions.

During an FTC listening session in June 2024 in Atlanta, participants voiced concerns about expanding mega investor presence. Members of Congress have also urged using existing authority under the Hart-Scott-Rodino Act for residential real estate transaction reporting.

Public comments can be submitted within 60 days via Regulations.gov and will be posted there once received.

The Commission's vote authorizing this notice was unanimous at 5-0. Commissioner Andrew N. Ferguson provided a statement supported by Commissioner Melissa Holyoak.

The Federal Trade Commission promotes competition while protecting consumers through education efforts. It advises against monetary demands or threats from its communications and offers resources online at ReportFraud.ftc.gov for reporting scams or frauds.