Bloomberg Talks: Jonathan Miller on Institutional Investors in Real Estate

Date: January 8, 2026
Guest: Jonathan Miller, President, CEO, and Co-founder of Miller Samuel
Host: Bloomberg

Episode Overview

This episode focuses on the recent proposal by former President Trump to ban institutional investors from purchasing single-family homes, situating the conversation within the broader issue of housing affordability in America. Real estate expert Jonathan Miller articulates why institutional investors—often blamed for affordability problems—may play a far smaller role than public perception suggests. The discussion unpacks the actual causes behind the housing affordability crisis, the complexities of supply and demand, and the limitations of political responses from both parties.

Key Discussion Points and Insights

1. The Scale of Institutional Investors in Housing

• Jonathan Miller clarifies that institutional investors represent only about 1% of the single-family housing market despite their high visibility.
• Misconceptions and Visibility:
  • These investors are "very much in the public eye" and are easy targets for political scapegoating.
  • Notable Quote:
    • “They only account for about 1% of the single family housing stock and so banning them from purchasing... I think the perception with the public is that they dominate inventory.” – Jonathan Miller [00:43]
• Regional Differences:
  • The highest concentration of institutional investors is in the Sun Belt, which currently has excess supply, reducing their overall market impact in terms of national affordability.

2. Public Perception vs. Reality

• Historical Context:
  • The public’s strong sentiments stem from the aftermath of the financial crisis, when large firms bought up large numbers of foreclosed homes, which "looms large in the public consciousness." – Host [01:43]
  • Miller notes: Some institutional players have already started selling off parts of their portfolios as the market peaked in recent years.
• Disconnection from the Real Problem:
  • The public and many policymakers misattribute the affordability crisis to institutional investors instead of systemic supply shortages.
  • Quote:
    • "I don't see... I see this as disconnected from what the actual problem is. The problem is to enhance affordability. And I don't think the institutional aspect of the housing market has much to do with it, right?" – Jonathan Miller [02:17]

3. Bipartisan Responses and Policy Limitations

• Beyond Trump:
  • This policy proposal isn’t unique; figures across the political spectrum, like Senator Elizabeth Warren, have advocated similar restrictions.
  • Quote:
    • “This is a bipartisan kind of approach to trying to tackle affordability in the housing market.” – Host [03:07]
• Miller’s Diagnosis:
  • Both parties, he argues, are “disconnected from the actual problem,” namely chronic housing undersupply and local variation in market conditions.

4. True Causes of Housing Affordability Crisis

• Supply and Zoning:
  • The inability to build more, especially affordable or mid-range housing, is central.
  • Supply is constrained by land, labor, and construction costs, pushing new builds toward the high end.
  • Quote:
    • “A lot of the housing that we’re building is skewing to the higher end... If you create oversupply or modest oversupply, you place pressure on housing prices.” – Jonathan Miller [03:35]
• Local vs. National Dynamics:
  • Regions like the Northeast and Midwest suffer from tight supply, while the Sun Belt saw rapid building during COVID migration but now has softer markets.
• Zoning Reform:
  • Changes like Minneapolis banning single-family zoning are attempts to boost density and affordability.
• Interest Rates:
  • Even with mortgage rates doubled from pre-pandemic lows, home prices continue to rise, signaling that supply remains the dominant issue.
  • Quote:
    • “You have to remember that mortgage rates are double what they were... And still housing prices are rising. Right. So it is all about supply.” – Jonathan Miller [05:09]

Notable Quotes and Memorable Moments

• “They only account for about 1% of the single family housing stock and so banning them... I think the perception with the public is that they dominate inventory.” – Jonathan Miller [00:43]
• “Perception is value.” – Jonathan Miller [02:17]
• “Both sides of the aisle are disconnected from the actual problem.” – Jonathan Miller [03:35]
• “A lot of the challenge of single family affordability has been zoning.” – Jonathan Miller [03:47]
• "You have to remember that mortgage rates are double what they were. And still, housing prices are rising. Right. So it is all about supply." – Jonathan Miller [05:09]

Important Segment Timestamps

• [00:43] – Miller addresses the oversized perception of institutional investors
• [01:43] – Host outlines why Wall Street firms are such a visible target
• [02:17] – Miller highlights the disconnection between policy proposals and the real issue
• [03:07] – Bipartisan approaches to policy and housing supply issues
• [03:35] – Discussion of the real drivers of affordability and construction challenges
• [05:09] – The impact of mortgage rates and the primacy of supply

Summary Flow

Throughout the episode, Jonathan Miller consistently challenges the narrative that institutional investors drive the U.S. housing affordability crisis. He supports his arguments with data (the “1%” figure), acknowledges the public backlash rooted in post-financial-crisis memories, and critiques bipartisan policy responses as misdirected. The conversation ultimately pivots to underline the primacy of increasing housing supply—despite complexities of cost, zoning, and regional variation—as the only viable long-term solution.