Miller Samuel CEO Jonathan Miller Talks Institutional Investors in Real Estate Market

Summary

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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

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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.

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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]

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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]

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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

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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.

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Transcript

[A]

Bloomberg Audio Studios Podcasts Radio news President Trump says he wants to ban institutional investors from buying single family homes. In a Truth Social post yesterday, he said that housing should be for people and not corporations. His proposal sparked market reaction, of course, on homebuilder stocks and landlords of single family homes. Let's bring in Jonathan Miller. He is president, CEO and co founder of the real estate appraisal and consulting firm Miller Samuel. And Jonathan, you and other experts in this space have made the point that institutional investors are not a big player in the single family rental market, yet they make for a convenient scapegoat. Why is that?

[B]

Well, I think that, you know, they're very much in the public eye, very visible. They only account for about 1% of the single family housing stock and it's so banning them from purchasing. I think the perception with the public is that they dominate inventory. They, they basically, you know, one of the challenging aspects of housing and why we're in an affordability crisis is because there's been inadequate supply. However, there are very tiny, they're, you know, a 1% sort of number. And then on top of it, the highest concentration of institutional investors, Wall street per se, is in the south, the Sun Belt, which has excess supply right now. So it, it. I'm having a hard time connecting the dots on how this will help improve affordability. I think it's a non issue generally for solving that problem.

[A]

Well, you make a lot of important points and it's a reminder of how at the end of the day, real estate is very local. Housing supply and housing demand is very local to each specific market. Yet when it comes to perceptions, there is this sense that these institutional investors, Wall street type of firms like a Blackstone, play this outsized role. And part of it is because they came during the financial crisis, in the wake of the financial crisis and did swoop in and buy a lot of single family homes at a time when Americans were losing their homes. So that looms large in the public consciousness.

[B]

Absolutely. The perception, you know, perception is value. And, and so they were, you know, highly visible coming in and sort of, you know, scooping up 2012, 2013, a tremendous volume of foreclosed homes after the financial and have made it work and some of the firms have even sold off part of their portfolios. As you know, the market has peaked in the last couple of years. So 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?

[A]

Well, to be fair, President Trump is not the only one who has suggested something like this. Elizabeth Warren, the Massachusetts senator, has also said something similar. So this is a bipartisan kind of approach to trying to tackle affordability in the housing market. You say the solution is to build more housing, but this, that, that, that takes a long time. That's not something that happens overnight. What kind of timeline are we talking about? Even if you could open this and just allow builders to start building more homes.

[B]

Yeah. And also, too, you know, a lot of the housing that we're building is skewing to the higher end because of land costs, because of product costs, because of labor costs. All those things make it very difficult. But if you create oversupply or modest oversupply, you place pressure on housing prices and, and that sort of melts into the next layer below that and then below that. It is not a surefire solution, but it's just one of those things. The other thing is, you know, a lot of the challenge of single family affordability has been zoning. And cities like Minneapolis have banned single family zoning. New, new construction within the municipality and trying to move towards multifamily in high density areas. There's many things that can be done. I think, to your point, that both sides of the aisle are disconnected from the actual problem in this idea that, you know, inventory is, Inventory is very local, very regional. And when we look at markets like the Northeast or the Midwest, very tight in terms of supply, we look at Sun Belt very soft because they were able to create and build more housing during the migration pattern that we saw during COVID where people left the Northeast and the west coast to go to more affordable housing. And that soon ended because the demand was so high. You have to remember that mortgage rates are double what they were.

[A]

Yeah.

[B]

And still housing prices are rising. Right. So it is all about supply.