Helter Shelter: How Blackstone Contributes to and Profits from California’s Broken Housing System
August 1, 2024
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Table of Contents
Blackstone Goes on a Buying Spree
Blackstone Hikes Rents in San Diego
Blackstone Ramped Up Evictions
Blackstone Benefits from Affordable Housing Shortage
Blackstone Fights Against Rent Control
Blackstone and RealPage’s Alleged Price Fixing
Appendix A: Blackstone Political Contributions to Fight Rent Control
“San Diego is at the forefront of California’s affordable housing crisis, and California is at the forefront of a national housing shortage.”
– San Diego Magazine, April 4, 2024.
Blackstone has strategically capitalized on the affordable housing crisis to bolster its profits and has been aggressively acquiring residential properties, especially in regions facing acute housing shortages like San Diego. The company’s emphasis on maximizing returns has led to substantial rent hikes, exploiting the scarcity of affordable housing options. On top of this, Blackstone’s opposition to rent control measures further reinforces its ability to dictate rental prices, amplifying its profitability amid the crisis.
Key Points
- Blackstone is by far the nation’s largest landlord,[1] owning almost 350,000 units of rental housing in the U.S.,[2] and many more around the world.
- Blackstone has been on aggressive buying spree since 2021, expanding its residential real estate empire, adding over 256,000 units to its portfolio.[3]
- In 2021, Blackstone acquired 66 rental properties with 5,800 total units in the San Diego, California area.[4] Since then, Blackstone has increased the rent at these properties 38% from an average of $1,696/mo. to $2,339/mo.[5] — almost double the average rent increase for all apartments in the San Diego market, which was 20% during this period.[6] The increase at some Blackstone-owned buildings has been especially high – up to 79%.[7]
- Until August 2022, Blackstone had a voluntary eviction moratorium for tenants who were behind on rent. After that, Blackstone initiated a wave of evictions across the U.S.[8] In California, Blackstone has a financial incentive to evict existing tenants because although state law limits how much a landlord can increase rents for current tenants, the law does not apply to how much a landlord can charge a new tenant.[9] In some cases, Blackstone filed to evict tenants who reportedly owed just one month’s rent.[10]
- Blackstone regularly touts to investors how it profits from the ongoing affordable housing crisis and the lack of new construction. In a 2023 letter to stockholders, Blackstone asserted that a “structural shortage of housing has resulted in pricing power for rental housing assets”[11] On quarterly earnings call last year, Blackstone President Jon Gray stated, “The good news is multifamily construction is now down about a third.”[12]
- Blackstone has spent millions of dollars to oppose efforts to limit rent increases in California. Blackstone gave over $7 million in both 2018 and 2020 to defeat rent control ballot initiatives. Blackstone’s contributions didn’t come from the company’s executives or corporate PAC, but rather from pools of capital from investors, including California public employee pension funds and the University of California.[13]
- As shown in this report, there is significant evidence that Blackstone uses RealPage’s YieldStar software program to set rents at its properties. For instance, a 2021 prospectus for a trust securitized by Blackstone-owned multifamily properties cited the use at specific properties. [14] For instance, “The property uses the revenue management system YieldStar.” [15] The Arizona and Washington, DC Attorneys General have filed lawsuits against RealPage for alleged illegal price-fixing, and the North Carolina Attorney General announced an investigation into RealPage’s anti-competitive practices.[16]
About Blackstone
Blackstone is the largest private equity company in the world, with over $1 trillion in assets under management (AUM). Blackstone owns 12,500 real estate assets and more than 230 portfolio companies.[17]
Blackstone founder and CEO Stephen Schwarzman has consistently been one of the highest paid executives in the U.S. He received $897 million in compensation last year.[18] Schwarzman is also one of the wealthiest people in the world, with a net worth of $38 billion as of May 2024.[19]
Blackstone is by far the nation’s largest landlord,[20] owning almost 350,000 units of rental housing in the U.S.,[21] and many more around the world.
Blackstone helped create the institutional single family rental industry in 2012 when it founded Invitation Homes after the Global Financial Crisis to acquire foreclosed single-family homes and rent them out. Between 2012 and 2016, Blackstone acquired almost 50,000 single family homes to rent.[22] In 2017, Blackstone conducted an initial public offering (IPO) for Invitation Homes and sold off 25% of its equity in the company.[23]
Three years later, Invitation Homes owned 80,000 homes.[24] Blackstone continued to be the majority owner of the company until late 2019, when it sold its remaining stake.[25] Blackstone made about $7 billion from its sale of Invitation Homes.[26]
This was not the end of Blackstone’s real estate activity. Blackstone’s U.S. housing portfolio currently includes:[27]
- 149,000 units: Multi-family
- 76,000 units: Affordable housing
- 65,500 units: Single Family Rental
- 44,000 units: Student housing
- 14,000 units: Manufactured housing
Blackstone Goes on a Buying Spree
Blackstone has been on an aggressive buying spree since 2021, expanding its residential real estate empire, adding over 256,000 units to its portfolio.[28]
In the last three and a half years, Blackstone’s acquisitions have included:
- 66 properties with 5,800 units in San Diego, CA for $1 billion in May 2021.[29]
- Home Partners of America (HPA) and its 17,000 single family homes for $6 billion in June 2021.[30]HPA now has an ownership interest in almost 28,000 properties,[31] making Blackstone the largest owner of single family “rent-to-own” properties in the U.S.[32]
- AIG’s interests in a Low Income Housing Tax Credit (LIHTC)-backed housing portfolio of more than 650 properties with almost 80,000 units for $5.1 billion in December 2021.[33]
- Real estate investment trust Preferred Apartment Communities, with 44 apartment complexes of around12,000 total units in the Southeast United States for $5.8 billion in February 2022.[34]
- American Campus Communities, which owned 166 student housing properties with 111,900 beds for $12.8 billion in August 2022. This made Blackstone the largest owner of student housing in the U.S.[35]
- 30 multi-family properties with 11,000 units from Bluerock Residential for $3.6 billion in October 2022.[36]
- Single family rental company Tricon Residential, which owns over 37,000 homes, for $3.5 billion in May 2024.[37]
- Apartment Income REIT Corporation (AIR Communities) with 27,010 apartment units for $10 billion. The deal was announced in April 2024 and is expected to close in the third quarter of 2024.[38]
Blackstone Hikes Rents in San Diego
In 2021, Blackstone acquired 66 rental properties with 5,800 total units in the San Diego, CA area.[39] Since then, in less than three years, Blackstone has increased the rent at these properties 38% from an average of $1,696/mo. to $2,339/mo.[40]
This was almost double the average rent increase for all apartments in the San Diego market, which was just 20% during this period.[41]
The increase at some Blackstone-owned buildings has been even greater – over 70%. For instance in San Ysidro, the average rent at Mar at Cottonwood went from $1,429 to $2,558, a 79% hike, and from $1,500 to $2,568 at Mar at Chavez, a 71% jump.
Prior to Blackstone’s purchase, many of these units were considered “naturally occurring affordable housing” – properties that were affordable, but not subsidized by any government program. This is a type of housing particularly vulnerable to large rent increases after an ownership change, which is something that local politicians and affordable housing advocates feared.[42]
In 2019, a United Nations human rights expert criticized Blackstone for helping to fuel a global housing crisis, singling out Blackstone’s business practices of making huge rent increases, imposing a range of heavy fees, and charging tenants for ordinary repairs, all of which have “devastating consequences” for renters.[43]
| Apartment | Address | City | Zip | # Units | AVERAGE RENT | ||
| Q3 2021 | Q1 2024 | % Change | |||||
| Mar at Cottonwood | 202 West San Ysidro Blvd | San Ysidro | 92173 | 91 | $1,429 | $2,558 | 79% |
| Mar at Chavez | 144 West Calle Primera | San Ysidro | 92173 | 150 | $1,500 | $2,568 | 71% |
| Mar at Laurel | 203 Laurel Lane | National City | 91950 | 86 | $1,521 | $2,499 | 64% |
| Hills at Fashion Valley | 2055 Westinghouse Street | San Diego | 92111 | 187 | $1,831 | $2,940 | 61% |
| Tierra Del Sol | 989 Peach Avenue | El Cajon | 92021 | 120 | $1,519 | $2,314 | 52% |
| Mar at Mesa | 3502 Angelucci Street | San Diego | 92111 | 62 | $2,028 | $3,076 | 52% |
| Terre at E Bradley | 360 East Bradley Avenue | El Cajon | 92021 | 70 | $2,092 | $3,141 | 50% |
| Valle at Canyon | 1624 Canyon Road | Spring Valley | 91977 | 124 | $1,508 | $2,242 | 49% |
| Valle at Escondido | 1204 North Escondido Blvd | Escondido | 92026 | 116 | $2,007 | $2,941 | 47% |
| Park | 776 East Madison Avenue | Escondido | 92025 | 190 | $1,828 | $2,673 | 46% |
| Palms | 3235 Armstrong Street | San Diego | 92111 | 160 | $1,955 | $2,802 | 43% |
| Terre at Preserve | 121 North Ramona Street | Ramona | 92065 | 52 | $1,710 | $2,449 | 43% |
| Terre at Madison | 422 Shady Lane | El Cajon | 92021 | 112 | $1,666 | $2,383 | 43% |
| Mar at National City | 2509 A Avenue | National City | 91950 | 142 | $1,493 | $2,129 | 43% |
| Terre at Creekside | 9360 Creekside Court | Santee | 92071 | 62 | $1,953 | $2,766 | 42% |
| Doriana | 6670 Doriana Street | San Diego | 92139 | 272 | $1,501 | $2,090 | 39% |
| Terre at Ballantyne | 542 Ballantyne Street | El Cajon | 92020 | 60 | $1,582 | $2,200 | 39% |
| Terre at Trails | 425 16th Street | Ramona | 92065 | 52 | $1,470 | $2,041 | 39% |
| Valle 9121 Kenwood | 9121 Kenwood Drive | Spring Valley | 91977 | 52 | $1,652 | $2,278 | 38% |
| Alta | 346 Jamacha Rd | El Cajon | 92019 | 144 | $1,679 | $2,303 | 37% |
| Calavo | 10850 Jamacha Blvd | Spring Valley | 91978 | 116 | $1,868 | $2,559 | 37% |
| Terre at Vintage | 110 7th Street | Ramona | 92065 | 68 | $1,566 | $2,149 | 37% |
| Valle at Park | 151 Gayland Street | Escondido | 92027 | 117 | $1,781 | $2,416 | 36% |
| Terre at Lexi | 328 South 1st Street | El Cajon | 92109 | 164 | $1,637 | $2,215 | 35% |
| Terre at Creek | 411 14th Street | Ramona | 92065 | 138 | $1,555 | $2,087 | 34% |
| Terre at Oak | 118 14th Street | Ramona | 92065 | 50 | $1,560 | $2,085 | 34% |
| Terre at Bostonia | 1294 North Mollison Ave | El Cajon | 92021 | 58 | $1,510 | $2,019 | 34% |
| Terre at Canyon | 1707 LaBrea Street | Ramona | 92065 | 148 | $1,608 | $2,144 | 33% |
| Horizon | 466 West Washington Ave | El Cajon | 92020 | 105 | $1,639 | $2,172 | 33% |
| Valle at Fairway | 3753 Fairway Drive | La Mesa | 91941 | 68 | $1,470 | $1,948 | 33% |
| Conrad Villas | 3917 Conrad Drive | Spring Valley | 91977 | 113 | $1,827 | $2,413 | 32% |
| Valle 9209 Kenwood | 9209 Kenwood Drive | Spring Valley | 91977 | 57 | $1,635 | $2,120 | 30% |
| Terre at Mollison | 233 North Mollison Ave | El Cajon | 92021 | 119 | $1,625 | $2,104 | 30% |
| Terre at Graves | 1521 Graves Avenue | El Cajon | 92021 | 96 | $1,750 | $2,260 | 29% |
| Valle at Mission | 832 North juniper Street | Escondido | 92025 | 122 | $1,822 | $2,333 | 28% |
| Terre at Lakeside | 12905 Mapleview Street | Lakeside | 92040 | 160 | $1,769 | $2,204 | 25% |
| Point Bonita | 250 Bonita Glen Drive | Chula Vista | 91910 | 295 | $2,004 | $2,486 | 24% |
| Terre at Bradley | 325 East Bradley | El Cajon | 92021 | 114 | $1,826 | $2,248 | 23% |
| Terre at the Ranch | 511 14th Street | Ramona | 92065 | 70 | $1,624 | $1,995 | 23% |
| Terre at E Park | 437 East Park Avenue | El Cajon | 92020 | 68 | $1,450 | $1,754 | 21% |
| State | 4981 Catoctin Drive | San Diego | 92115 | 133 | $1,656 | $1,976 | 19% |
| Mar at Seaside | 2401 Seaside Street | San Diego | 92107 | 64 | $1,985 | $2,297 | 16% |
| Vida | 1084 East Washington Ave | Escondido | 92025 | 130 | $1,378 | $1,554 | 13% |
| AVERAGE RENT | $1,696 | $2,339 | 38% | ||||
Blackstone Ramped Up Evictions
According to the company’s website, “During the pandemic, Blackstone recognized that many were experiencing extreme hardship and chose not to make a single eviction for non-payment across our US rental housing portfolio for two years.”[44]
However, this practice came to an end in late 2022 when Blackstone’s head of Americas real estate Nadeem Meghji said at an internal company meeting that there was a “terrific” future for Blackstone’s real estate operations thanks in part to its plan to resume evictions. “[W]e’re also seeing a meaningful increase in economic occupancy as we move past what were voluntary eviction restrictions that had been in place for the last couple of years,” Meghji said.[45]
Throughout the country, Blackstone’s renewed eviction filings were quickly evident as Blackstone filed to evict hundreds of tenants across the U.S. Towards the end of 2022 in Georgia and Florida, Blackstone filed more cases in a typical week than the total for the first seven months of 2022.[46]
In August 2022, Blackstone representatives informed local elected officials in San Diego County about “their plans to potentially evict tenants with outstanding rent balances.” According to one local councilmember, Blackstone “informed me that over 100 tenants residing at their Escondido properties have delinquent accounts that may result in evictions.”[47]
The councilmember made her concern clear, stating, “these older properties that have been acquired are part of our city’s ‘naturally occurring affordable’ rental housing in Escondido. Once acquired by new investors, they become market-rate housing and are no longer affordable, causing many residents to be displaced.”[48] The councilmember’s fears were well-founded as the above data shows rents that are dramatically higher than they had been less than three years ago.
Blackstone has a strong financial incentive to evict existing tenants in San Diego because California law limits how much a landlord can increase rents for current tenants, but the law does not apply to how much a landlord can charge a new tenant. The Tenant Protection Act of 2019 sets a maximum cap of 10% for annual rent hikes.[49] However, as shown above, Blackstone can charge higher rents to new tenants.
In one case, Blackstone filed to evict a tenant who had reportedly only missed one month’s rent.[50] An NBC7 story in December 2022 reported about a tenant who said Blackstone gave her an eviction notice after falling just one month behind on the rent on her Chula Vista, California apartment.[51]
Blackstone Benefits from Affordable Housing Shortage
Blackstone regularly proclaims to investors how it profits from the ongoing affordable housing crisis and the lack of new construction that would address this issue.
- In a 2023 letter to stockholders, Blackstone asserted that a “structural shortage of housing has resulted in pricing power for rental housing assets”[53]
- In a 2024 letter to stockholders, Blackstone listed “Declining new supply” in a section titled “We See Several Reasons for Optimism in 2024,” noting “Construction starts in our key sectors remain 30-75% below their 2022 peak.”[54]
- On the company’s fourth quarter 2023 earnings call, Blackstone President Jon Gray stated, “The good news is multifamily construction is now down about a third.”[55]
- On Blackstone’s third quarter 2023 earnings call, Gray celebrated that higher interest rates “are having the effect of meaningfully reducing the new supply pipeline, which is favorable for values longer term.”[56]
- Blackstone President Jon Gray said on the company’s second quarter 2023 earnings call, “The other helpful pitch in real estate is you’re seeing a sharp decline in new supply,” noting that “[h]ousing supply is down aggregately about 20%+ from where it was.”[57]
- On the earnings call for the first quarter 2023, Blackstone’s Gray noted that the “pullback in capital markets is further construing the new supply pipeline for most types of real estate.” Gray declared that “This is quite positive for real estate over time.”
Blackstone Fights Against Rent Control
Blackstone has a history of spending millions of dollars to oppose regulatory efforts to limit rent increases.
In 2018 and 2020, a coalition of community and labor organizations collected more than half a million signatures to put a measure on the ballot in California that would have repealed the Costa-Hawkins Act, a 1995 law that bars municipalities from expanding rent control.
Blackstone gave over $7 million in both 2018 and 2020 to defeat rent control ballot initiatives. Blackstone’s contributions didn’t come from the company’s executives or corporate PAC, but rather from pools of capital from investors, including California public employee pension funds and the University of California. [58]
- In 2018, Blackstone made over 30 contributions totaling more than $5 million to the “No on Prop 10” committee and 5 contributions totaling more than $1.1 million to Californians for Responsible Housing. Invitation Homes, which at the time was owned by Blackstone, contributed another $1.2 million to Californians for Responsible Housing. These contributions came from Blackstone Real Estate Income Trust (BREIT) and Blackstone Real Estate Partners funds VI-VIII.
- In 2020, Blackstone was the largest donor to the California Business Roundtable Issues PAC, making 2 contributions totaling $7 million. In turn, the Business Roundtable Issues PAC gave $7.2 million to the No on Prop 21 committee to defeat rent control. Again, Blackstone’s contributions didn’t come from the company’s executives or corporate PAC, but from pools of capital from investors in Blackstone Real Estate Income Trust (BREIT) and Blackstone Real Estate Partners funds VII-IX.
| Blackstone Real Estate Partners Fund[59] | ||||
| VI | VII | VIII | IX | |
| CalSTRS (California State Teachers Retirement System) | X | X | X | |
| Contra Costa County Employees Retirement Association | X | |||
| Los Angeles Dept of Water and Power Employees Retirement System | X | X | ||
| San Diego County Employees Retirement Association | X | |||
| San Francisco Employees Retirement System | X | X | ||
| Santa Barbara County Employees Retirement System | X | X | ||
| University of California | X | X | ||
In a 2019 letter to Blackstone, a United Nations human rights expert said, “Blackstone is using its significant resources and political leverage to undermine domestic laws and policies that would in fact improve access to adequate housing consistent with international human rights law.”[60]
Blackstone and RealPage’s Alleged Price Fixing
The Arizona and Washington, DC Attorneys General have also filed lawsuits against the company RealPage, alleging that it sold a software program called YieldStar that enabled landlords and property managers to collude to inflate rents above competitive levels in a cartel-like fashion. The North Carolina Attorney General announced an investigation into RealPage’s alleged illegal price-fixing and anti-competitive practices.[61]
“The conspiracy allegedly engaged in by RealPage and these landlords has harmed Arizonans and directly contributed to Arizona’s affordable housing crisis,” said Arizona Attorney General Kris Mayes. “In the last two years, residential rents in Phoenix and Tucson have risen by at least 30% in large part because of this conspiracy that stifled fair competition and essentially established a rental monopoly in our state’s two largest metro areas. RealPage and its co-defendants must be held accountable for their role in the astronomical rent increases forced on Arizonans.” [62]
In 2023, President Biden tasked the U.S. Department of Justice (DOJ) with looking into anti-competitive information sharing practices in the housing market. The following month, the DOJ announced that it would “heighten its scrutiny of competing companies’ pricing and other information sharing practices” because it could “enable illegal collusion.”[63] The DOJ has now opened a criminal investigation into RealPage, according to a March 2024 article in Politico, which called it a “marked escalation of the probe.”[64] In addition, in November 2023 the DOJ filed a brief arguing that the private lawsuits against RealPage should be allowed to go forward.[65]
In addition, more than 30 private lawsuits have been filed against RealPage, The lawsuits have been consolidated in federal court in Tennessee and are currently pending.[66]
Blackstone’s Use of Real Page
There is ample evidence that Blackstone uses RealPage to set rents at properties it owns.
A 2021 prospectus prepared by Morningstar for a trust securitized by Blackstone-owned multifamily properties specifically cited the use of RealPage’s YieldStar at specific properties. [67] For instance:
- Legacy North – “The property uses the revenue management system YieldStar.”
- Crest at Park Central – “The property uses the revenue management system YieldStar.”
- Integra Cove, Orlando – “The assistant community manager indicated that rents are determined using YieldStar and are adjusted on a daily basis.”
Ads for revenue management positions with Blackstone require experience with YieldStar, RealPage’s revenue management system. For example: A job ad for the Senior Manager of Revenue and Performance stated, “The Revenue and Performance Senior Manager will be involved in all aspects of Revenue Management including oversight of YieldStar.”[68]
The Vice-President of Revenue Management at Blackstone’s multi-family properties has been featured as a RealPage expert on at least three RealPage webcasts about revenue management, including one titled “Smart Solutions: How to Outperform in a Changing Market with Revenue Management.”[69] LivCor is Blackstone’s multi-family asset manager.[70]
A 2016 sale agreement of a Blackstone property included a list of service contracts that were in effect at the property, including a contract with RealPage for its “YieldStar Price Optimizer.”[71]
FPI Management, which Blackstone contracts with to manage its San Diego properties,[72] is a named defendant in several of the lawsuits involving YieldStar,[73] although none of the lawsuits cites Blackstone-owned companies specifically. FPI is one of 14 property managers that Blackstone uses that were named as co-defendants in the RealPage lawsuits. These companies manage at least 350 Blackstone properties, totaling over 100,000 units, more than two-thirds of Blackstone’s multifamily portfolio.[74] The lawsuits do not allege specifically that the property managers engaged in price fixing at Blackstone-owned properties.
| Property Manager | # of Properties | # of Total Units |
| AIR Communities | 3 | 1,748 |
| Avenue5 Residential | 5 | 935 |
| Bell Partners | 78 | 26,729 |
| BH Management | 38 | 12,721 |
| Cardinal Group | 5 | 1,086 |
| ConAm Management | 4 | 1,834 |
| Cortland | 30 | 11,109 |
| Cushman & Wakefield | 12 | 3,956 |
| DayRise Residential | 15 | 4,906 |
| FPI Management | 90 | 16,760 |
| Greystar | 48 | 13,519 |
| Mission Rock | 8 | 1,377 |
| RPM Living | 2 | 677 |
| Security Properties | 12 | 3,776 |
| TOTAL | 350 | 101,133 |
Recommendations
As the largest landlord in the United States and one of the largest landlords in the world, Blackstone’s actions impact hundreds of thousands of tenants. Blackstone should establish itself as a leader by:
- Limiting rent increases at all of its properties to a maximum of 3% per year.
- Providing relocation assistance to tenants unable to afford rent increases.
- Not interfering with local, state or national efforts to establish rent control.
- Recognizing tenant associations and tenant unions, including meeting with them on a regular basis and engaging in good faith negotiations
- Working with tenants who are behind on rent and making available affordable payment plans that enable tenants to repay the amount they owe.
- Ensuring that tenants who are behind on rent are aware of and have access to available financial assistance programs that can help them get caught up and legal assistance programs that can provide representation to tenants in court.
Appendix A: Blackstone Political Contributions to Fight Rent Control
| Blackstone Contributions to “No on Prop 10” | |||
| Date | Amount | Date | Amount |
| 8/31/18 | $561,400 | 10/5/18 | $266,200 |
| 8/31/18 | $417,500 | 10/5/18 | $74,300 |
| 8/31/18 | $300,900 | 10/5/18 | $288,300 |
| 8/31/18 | $391,000 | 10/5/18 | $40,300 |
| 8/31/18 | $198,100 | 10/5/18 | $108,600 |
| 8/31/18 | $52,200 | 10/5/18 | $204,900 |
| 8/31/18 | $56,800 | 10/5/18 | $38,700 |
| 8/31/18 | $60,800 | 10/5/18 | $109,100 |
| 8/31/18 | $98,900 | 10/5/18 | $41,400 |
| 8/31/18 | $59,200 | 10/5/18 | $134,900 |
| 8/31/18 | $110,100 | 10/5/18 | $179,700 |
| 8/31/18 | $109,100 | 10/5/18 | $35,600 |
| 8/31/18 | $160,300 | 10/5/18 | $67,400 |
| 8/31/18 | $263,900 | 10/5/18 | $74,900 |
| 8/31/18 | $159,500 | 10/5/18 | $38,200 |
| 10/5/18 | $339,600 | TOTAL | $5,041,800 |
| Contributions to “Californians for Responsible Housing” | |||
| Blackstone | Invitation Homes | ||
| Date | Amount | Date | Amount |
| 11/6/18 | $250,000 | 7/2/18 | $644,200 |
| 11/6/18 | $325,500 | 10/21/18 | $642,000 |
| 11/6/18 | $559,100 | ||
| TOTAL | $1,134,600 | TOTAL | $1,286,200 |
| Blackstone Contributions to “Californian Business Roundtable Issues PAC” | |
| Date | Amount |
| 6/12/20 | $2,000,000 |
| 6/25/20 | $5,000,000 |
| 2020 TOTAL | $7,000,000 |
| 5/5/22 | $1,500,000 |
| 7/5/22 | $1,000,000 |
| 10/25/22 | $500,000 |
| 10/31/22 | $500,000 |
| 2022 TOTAL | $3,500,000 |
Resources
[1] National Multi-Family Housing Council lists Greystar as the largest owner of rental housing with 108,566 units, but Blackstone owns three and a half times as many. https://www.nmhc.org/research-insight/the-nmhc-50/top-50-lists/2024-top-owners-list/
[2] BREIT lists 267,891 units in its portfolio as of 9/30/23. https://www.breit.com/property-type/rental-housing/ This does not include Blackstone’s ownership of StuyTown (11,200 units), its purchase of the Conrad Prebys Apartments (5,800 units), and its 2024 acquisitions of Tricon Residential (37,183 units) and AIR Communities (27,010 units).
[3] BREIT lists 186,155 units added to its portfolio in 2021 and 2022. https://www.breit.com/property-type/rental-housing/ This does not include Blackstone’s ownership 2021 purchase of the Conrad Prebys Apartments (5,800 units) and its 2024 acquisitions of Tricon Residential (37,183 units) and AIR Communities (27,010 units).
[4] Phillip Molinar, “Blackstone Group to buy 66 apartment complexes in San Diego for more than $1 billion,” San Diego Tribune, May 11, 2021, https://www.sandiegouniontribune.com/business/story/2021-05-11/blackstone-group-to-buy-66-apartment-complexes-in-san-diego-for-more-than-1-billion
[5] Average rent data for each apartment building was obtained from Yardi Matrix, accessed May 3, 2024. Combined average rent for all buildings/units was calculated as a weighted average based on the number of units in each building. Data obtained from Yardi Matrix, accessed May 3, 2024.
[6] The average rent according to Yardi Matrix in Q3 2021 for the San Diego market was $2,259 and in Q1 2024 was $2,706. The Yardi Matrix Rent Survey is a research service provided by Yardi Systems, Inc., which develops software for real estate investment management and property management. The Yardi Matrix Rent Survey analyzes residential apartment rents across various markets in the U.S. It collects, verifies, and reports rental data on a monthly basis, covering metrics such as average rents, occupancy rates, and rent growth trends for different types of rental properties. The Yardi Matrix Rent Survey is known for its comprehensive coverage, including detailed information on individual properties such as amenities, unit mix, and ownership, which makes it a valuable tool for in-depth market analysis.
[7] Yardi Matrix, accessed May 3, 2024. The average rent at the Mar at Cottonwood in San Ysidro was $1,429 in Q3 2021 and $2,558 in Q1 2024.
[8] Mark Vandevelde, “Blackstone steps up tenant evictions in US with eye on boosting returns,” Financial Times, January 29, 2023, https://www.ft.com/content/5ac750a5-c454-485d-8974-17627c47ea20
[9] “The California Tenant Protection Act of 2019 (AB 1482)” August 3, 2023 fact sheet,
https://www.sf.gov/reports/august-2023/california-tenant-protection-act-2019-ab-1482
[10] “Protesters Storm San Diego Real Estate Office, Demand End to Evictions Targeting Low-Income Renters,” NBC7 San Diego, December 9, 2022, https://www.nbcsandiego.com/news/local/protesters-storm-san-diego-real-estate-office-demand-end-to-evictions-targeting-low-income-renters/3118145/
[11] Blackstone 2022 Year-End Stockholder Letter, January 26, 2023, https://www.breit.com/2022-year-end-stockholder-letter/
[12] Blackstone Fourth Quarter and Full Year 2023 Investor Call, January 25, 2024,
[13] All contribution data is from the California Secretary of State Campaign Finance Power Search, https://powersearch.sos.ca.gov/advanced.php. See Appendix A.
[14] Presale Report BX Trust 2021-BXMF, DBRS Morningstar October 20, 2021
[15] Presale Report BX Trust 2021-BXMF, DBRS Morningstar October 20, 2021
[16] Katharine Carlon, “Report: DOJ opens criminal probe into RealPage, multiple landlords,” Multifamily Dive, March 25, 2024, https://www.multifamilydive.com/news/DOJ-antitrust-suit-price-fixing-algorithm-RealPage/711152/#:~:text=Also%20earlier%20this%20month%2C%20North,the%20cost%20of%20rental%20housing
[17]https://www.blackstone.com/the-firm/
[18] “Blackstone CEO Schwarzman received $896.7 mln in pay, dividends in 2023,” Reuters, February 23, 2024
[19]https://www.forbes.com/profile/stephen-schwarzman/?sh=14fa8b05234am , accessed May 23, 2024
[20] National Multi-Family Housing Council lists Greystar as the largest owner of rental housing with 108,566 units, but Blackstone owns three and a half times as many. https://www.nmhc.org/research-insight/the-nmhc-50/top-50-lists/2024-top-owners-list/
[21] BREIT lists 267,891 units in its portfolio as of 9/30/23. https://www.breit.com/property-type/rental-housing/ This does not include Blackstone’s ownership of StuyTown (11,200 units), its purchase of the Conrad Prebys Apartments (5,800 units), and its 2024 acquisitions of Tricon Residential (37,183 units) and AIR Communities (27,010 units).
[22] Joshua Beroukhim, “The Story and Lessons Behind Invitation Homes: Blackstone’s Acquisition of 50,000 Single Family Homes for $10 Billion Between 2012 and 2016,” Behind the Deals, March 15, 2017, https://behindthedeals.com/2017/03/15/the-story-and-lessons-behind-invitation-homes-blackstones-acquisition-of-50000-single-family-homes-for-10-billion-between-2012-and-2016/
[23] Ibid
[24] Michelle Conlin, “Spiders, sewage and a flurry of fees – the other side of renting a house from Wall Street,” Reuters, July 27, 2018, https://www.reuters.com/investigates/special-report/usa-housing-invitation/
[25] Ben Lane, “Blackstone cashes out on Invitation Homes,” Housing Wire, November 22, 2019, https://www.housingwire.com/articles/blackstone-cashes-out-on-invitation-homes/
[26] Ryan Dezember, “Blackstone Moves Out of Rental-Home Wager With a Big Gain,” Wall Street Journal, November 21, 2019, https://www.wsj.com/articles/blackstone-moves-out-of-rental-home-wager-with-a-big-gain-11574345608
[27] Approximately 268,000 units are listed on the BREIT website https://www.breit.com/property-type/rental-housing/. In addition, Blackstone bought StuyTown in New York City (11,200 units), the Conrad Prebys Apartments in San Diego (5,800 units), the single family rental company Tricon Residential (37,183 units) and AIR Communities (27,010 units).
[28] BREIT lists 186,155 units added to its portfolio in 2021 and 2022. https://www.breit.com/property-type/rental-housing/ This does not include Blackstone’s ownership 2021 purchase of the Conrad Prebys Apartments (5,800 units) and its 2024 acquisitions of Tricon Residential (37,183 units) and AIR Communities (27,010 units).
[29] Phillip Molinar, “Blackstone Group to buy 66 apartment complexes in San Diego for more than $1 billion,” San Diego Tribune, May 11, 2021, https://www.sandiegouniontribune.com/business/story/2021-05-11/blackstone-group-to-buy-66-apartment-complexes-in-san-diego-for-more-than-1-billion
[30] “Blackstone To Acquire Single-Family Rental Firm for $6B,” The Real Deal, June 22, 2021, https://balaarenacapital.com/2021/06/22/blackstone-to-acquire-single-family-rental-firm-for-6b
[31]https://www.breit.com/property-type/rental-housing/
[32] Rebecca Burns, “Private equity sold them a dream of home ownership. They got evicted instead.”
Business Insider, July 7, 2023
https://www.businessinsider.com/home-partners-rent-to-own-low-success-rate-2023-5
[33] Donna Kimura, “Blackstone Acquires Assets in Huge AIG Housing Portfolio,” Affordable Housing Finance, December 21, 2021, https://www.housingfinance.com/news/blackstone-acquires-assets-in-huge-aig-housing-portfolio_o
[34] “Preferred Apartment Communities, Inc. to Be Acquired by Blackstone Real Estate Income Trust,” February 16, 2022, Blackstone press release, https://www.blackstone.com/news/press/preferred-apartment-communities-inc-to-be-acquired-by-blackstone-real-estate-income-trust/
[35] “Blackstone Funds Complete $13 Billion Acquisition of American Campus Communities,” August 9, 2022, Blackstone press release, https://www.blackstone.com/news/press/blackstone-funds-complete-13-billion- acquisition-of-american-campus-communities/
[36] Candyd Mendoza, “Blackstone concludes $3.6 billion acquisition of Bluerock,” MPA Mag, October 7 2022, https://www.mpamag.com/us/specialty/commercial/blackstone-concludes-36-billion-acquisition-of-bluerock/423238
[37] “Blackstone’s takeover of Tricon Residential gets final approval,” Real Estate News Exchange, April 25, 2024,
https://renx.ca/blackstones-takeover-of-tricon-residential-gets-final-approval
[38] “Blackstone Real Estate to Take AIR Communities Private for Approximately $10 Billion,” Blackstone press release, April 8, 2024,
[39] Phillip Molinar, “Blackstone Group to buy 66 apartment complexes in San Diego for more than $1 billion,” San Diego Tribune, May 11, 2021, https://www.sandiegouniontribune.com/business/story/2021-05-11/blackstone-group-to-buy-66-apartment-complexes-in-san-diego-for-more-than-1-billion
[40] Average rent data for each apartment building was obtained from Yardi Matrix, accessed May 3, 2024. Combined average rent for all buildings/units was calculated as a weighted average based on the number of units in each building. Data is only available for properties with 50 or more units. Rent data was not available for the Bay Pointe apartments.
[40] Data obtained from Yardi Matrix, accessed May 3, 2024. Average rent in Q3 2021 was $2,259 and in Q1 2024 was $2,706.
[41] Yardi Matrix.
42 – Lisa Halverstadt and Jesse Marx, “Advocates Worry Blackstone Sale Will Take Affordable Housing Crisis From Bad to Worse,” Voices of San Diego, May 18, 2021, https://voiceofsandiego.org/2021/05/18/advocates-worry-blackstone-sale-will-take-affordable-housing-crisis-from-bad-to-worse/
[43] Patrick Butler and Dominic Rushe, “UN accuses Blackstone Group of contributing to global housing crisis,” The Guardian, March 26, 2019, https://www.theguardian.com/us-news/2019/mar/26/blackstone-group-accused-global-housing-crisis-un
[44]https://www.blackstone.com/wp-content/uploads/sites/2/2024/04/0056537_Approach-to-Rental-Housing.pdf
[45] Robin Wigglesworth, “Blackstone’s plan to juice REIT,” Financial Times, December 7, 2022,
https://www.ft.com/content/d02a59fb-493a-427a-849a-9acbd576cdbf
[46] Mark Vandevelde, “Blackstone steps up tenant evictions in US with eye on boosting returns,” Financial Times, January 29, 2023, https://www.ft.com/content/5ac750a5-c454-485d-8974-17627c47ea20
[47] September 1, 2022 letter from Escondido City Councilmember Consuelo Martinez, https://drive.google.com/file/d/1dL8RcosaP2dkxTMMzvRmnmaRSD0K_8a1/view
[48] Ibid
[49] “The California Tenant Protection Act of 2019 (AB 1482)” August 3, 2023 fact sheet,
https://www.sf.gov/reports/august-2023/california-tenant-protection-act-2019-ab-1482
[50] Case Number 2022-CC-019797, filed by BREIT CA MF Amara LLC on 11/17/22 in County Court of the Ninth Judicial Circuit for Orange County, FL. Tenant’s monthly rent was $2,088. Blackstone filed to evict the tenant for past due rent amount of $2,248, which would be one month’s rent plus late fee. Case Number 2022-CC-020991 filed by BREIT CA MF Amara on 12/6/22 in County Court of the Ninth Judicial Circuit for Orange County, FL. Tenant’s monthly rent was $2,241. Blackstone filed to evict the tenant for past due rent amount of $2,587,which would be one month’s rent plus late fee.
[51] Protesters Storm San Diego Real Estate Office, Demand End to Evictions Targeting Low-Income Renters,” NBC7 San Diego, December 9, 2022, https://www.nbcsandiego.com/news/local/protesters-storm-san-diego-real-estate-office-demand-end-to-evictions-targeting-low-income-renters/3118145/
[52]https://www.cbs8.com/article/news/local/tenants-in-blackstone-owned-properties-rally/509-591cc3fb-ba2c-4425-a8de-49ea3d16557c
[53] Blackstone 2022 Year-End Stockholder Letter, January 26, 2023, https://www.breit.com/2022-year-end-stockholder-letter/
[54] Blackstone 2023 Year-End Stockholder Letter, February 5, 2024, https://www.breit.com/2023-year-end-stockholder-letter/
[55] Blackstone Fourth Quarter and Full Year 2023 Investor Call, January 25, 2024, https://s23.q4cdn.com/714267708/files/doc_financials/2023/q4/Blackstone-Fourth-Quarter-And-Full-Year-2023-Investor-Call.pdf
[56] Blackstone Third Quarter 2023 Investor Call, October 19, 2023,
[57] Blackstone Second Quarter 2023 Investor Call, July 20, 2023,
[58] All contribution data is from the California Secretary of State Campaign Finance Power Search, https://powersearch.sos.ca.gov/advanced.php . See Appendix A.
[59] Pitchbook
[60] “Letter to Blackstone CEO from the UN Special Rapporteur on the right to adequate housing & UN Working Group on Business & Human Rights,” March 22 2019, https://www.business-humanrights.org/en/latest-news/letter-to-blackstone-ceo-from-the-un-special-rapporteur-on-the-right-to-adequate-housing-un-working-group-on-business-human-rights/
[61] Katharine Carlon, “Report: DOJ opens criminal probe into RealPage, multiple landlords,” Multifamily Dive, March 25, 2024,https://www.multifamilydive.com/news/DOJ-antitrust-suit-price-fixing-algorithm-RealPage/711152/#:~:text=Also%20earlier%20this%20month%2C%20North,the%20cost%20of%20rental%20housing
[62] “Attorney General Mayes Sues RealPage and Residential Landlords for Illegal Price-Fixing Conspiracy,” February 28, 2024,
[63] March 2, 2023 Letter from US Senator Elizabeth Warren to the Honorable Jonathan Kanter, Assistant Attorney General, US Department of Justice,
Dan Papscun, “Information Sharing to Face Heightened DOJ Antitrust Scrutiny,” Bloomberg Law, Feb 2, 2023
[64] Josh Sisco, “DOJ escalates price-fixing probe on housing market,” Politico, March 20, 2024
https://www.politico.com/news/2024/03/20/rental-housing-market-doj-investigation-00147333
[65] Will Parker, Justice Department Says Collusion Suit Against Apartment Owners Should Move Forward,” Wall Street Journal, November 16, 2023
[66] Kathy Carlon, “Judge Allows Rent-Fixing Lawsuits Against Real Page, More Than 20 Big Multifamily Owners to Proceed,” BisNow, August 8, 2023, https://www.bisnow.com/national/news/multifamily/judge-allows-rent-fixing-lawsuits-against-realpage-more-than-20-big-multifamily-owners-to-proceed-120151
[67] Presale Report BX Trust 2021-BXMF, DBRS Morningstar October 20, 2021
[68]https://www.linkedin.com/jobs/view/sr-manager-revenue-performance-at-livcor-a-blackstone-portfolio-company-3723908293/
[69]https://www.realpage.com/webcasts/smart-solutions-outperform-changing-market/
[70]https://www.linkedin.com/company/livcor/
[71]https://www.sec.gov/Archives/edgar/data/1651286/000165128617000011/ex101sweetwater_psa.htm, Exhibit H
[72] Yardi Matrix, accessed May 6, 2024
[73] For instance, see: Kempton et al v. RealPage Inc et al, (M.D. Tenn, 3:2023cv00419); Hardie v. RealPage, Inc., (W.D. Wash., 2:23-cv-00059); Cherry et al v. RealPage Inc et al, (M.D. Tenn., 3:2023cv00332); Marchetti v. RealPage, Inc. (M.D. Tenn., 1:23-cv-20263); Enders v. RealPage, Inc. et al (M.D. Tenn., 1:23-cv-00055); Bason et al v. RealPage, Inc. et al (S.D. Cal., 3:22-CV-01611); Aguston v. RealPage, Inc. et al (J.P.M.L., 1:22-cv-00976).
[74] The 14 property managers are: AIR Communities, Avenue5 Residential, Bell Partners, BH Management, Cardinal Group, ConAm Management, Cortland, Cushman & Wakefield, DayRise Residential, Greystar, Mission rock, RPM Living, and Security Properties. Source: Yardi Matrix.
