Washington, D.C. (March 22, 2022) – An independent study, published in The Review of
Financial Studies, found the presence of large single-family rental home companies in local
communities led to a meaningful reduction in neighborhood criminal activity with only a
negligible corresponding increase in rental rates.
In a paper entitled, “Do Wall Street Landlords Undermine Renters’ Welfare?” researchers from
the University of Texas at Dallas and the University of Oregon analyzed whether, and to what
extent, the presence of large single-family rental home companies impacted incidents of criminal
activity in local neighborhoods. The research determined the presence of large single-family
rental home companies resulted in rent increases of 0.51% and a decrease of 5.23% in the
number of criminal incidents. Specific areas experiencing a reduction in criminal activity
include:
- Thefts, down 4.64%
- Vandalism, down 3.43%
- Burglaries, down 3.03%
The paper attributes the reduction in criminal activity to the fact that “higher scale and market
share allow institutional landlords to internalize the cost of neighborhood safety.”
The authors conclude, “gains in scale and market share result in an economically moderate rise in rent. At the same time, neighborhoods also witness a significant reduction in the crime rate, suggesting that large institutional landlords play a beneficial role in enhancing neighborhood safety.”
About NRHC
The National Rental Home Council (NRHC) is the nonprofit trade association representing the single-family rental home industry. NRHC members provide families and individuals with access to high-quality, single-family rental homes that contribute to the vitality and vibrancy of neighborhoods and
communities. For more information on NRHC or the single-family rental home industry visit
www.rentalhomecouncil.org
Contact: David Howard, [email protected]