Finalization of Blackstone acquisition of Tricon Residential stands to worsen affordable housing crisis

This month, private equity firm Blackstone, the world’s largest landlord, finalized its acquisition of Tricon Residential, expanding its inventory of single-family rental homes to 66,000 properties in the U.S.

Since its announcement in January, the deal has been roundly criticized by advocates who say that Blackstone should commit to robust tenant protections in light of the firm’s shoddy track record as a landlord. A March 2023 report by the Private Equity Stakeholder Project (PESP) highlighted how Blackstone raised rents by as much as 64% in housing units that had been considered affordable when the firm purchased them. Blackstone has also faced media scrutiny for its failure to adequately maintain its units, with residents having to endure mold, pests, and more.

Below is a statement from Jordan Ash, Housing Director at PESP, on Blackstone’s acquisition of Tricon:

“It is disappointing to see Blackstone complete its acquisition of Tricon without a commitment to better its treatment of tenants. Blackstone has directly contributed to the affordable housing crisis across the U.S., and has previously put profits ahead of tenants’ well-being. 

This deal will harm tenants and establish an anti-competitive marketplace. Blackstone’s poor track record as a landlord is well-known and well-documented. Giving this massive firm more of a market share would be disastrous and only accelerate the affordable housing crisis in this nation.

We urge Blackstone’s investors to closely monitor the firm’s treatment of its tenants and advocate for Blackstone to enshrine protections for renters.” 

Pension fund investors in BREP X, the Blackstone fund that completed the acquisition of Tricon, include:

• Arkansas Teacher Retirement System
• CalSTRS (California State Teachers Retirement System)
• City of Tampa General Retirement System
• Colorado Fire and Police Pension
• Contra Costa County Employees Retirement Association
• Cook County Pension Fund
• Employees Retirement System of Hawaii
• Houston Firefighters Relief and Retirement System
• Illinois Municipal Retirement System
• Illinois State Board of Investment
• Indiana Public Retirement System
• Indiana State Teachers Retirement System
• Kentucky Teachers Retirement System
• LACERA (Los Angeles County Employees Retirement Association)
• Michigan Department of Treasury
• Minnesota State Board of Investment (MN SBI)
• New York City Board of Education
• New York City Employees Retirement System (NYCERS)
• New York City Teachers Retirement System
• New York State Common Retirement Fund
• New York State Teachers Retirement System (NYSTRS)
• North Carolina Retirement System (NCRS)
• Oklahoma City Employees Retirement System
• Oregon Public Employees Retirement System (OPERS)
• Pennsylvania State Employees Retirement System (PSERS)
• San Francisco Employees Retirement System (SFERS)
• South Carolina Retirement System
• State Teachers Retirement System of Ohio
• Teachers Retirement System of Illinois
• Teachers Retirement System of Louisiana
• Teachers Retirement System of New York
• Teachers Retirement System of Oklahoma
• Teachers Retirement System of Texas
• Tennessee Consolidated Retirement System
• Texas Municipal Retirement System
• Texas Permanent School Fund
• University of California
• University of Texas Investment Management Company (UTIMCO)
• University of Vermont Endowment
• Virginia Retirement System
• West Virginia Investment Management
• Wisconsin Investment Board