Why Corporations, Famous Investors are Buying Land & Houses

Written By Jacob Smedley

Why do corporations and wealthy individuals like Bill Gates & Oprah seem so determined to buy US land and residential property? Here's what we've gathered.

In recent years, there has been growing attention and speculation regarding large-scale purchases of land and houses by major corporations, hedge funds, private equity firms, and even individual high-profile investors. This trend has given rise to various explanations, some of which are considered conspiracy theories. But first, is the claim that big investors and corporations are buying up land and homes in the US actually true?

Is it True that Corporations and Famous Investors are Buying Land & Houses Faster than Ever?

The claim holds merit. Several reports and studies over the last few years confirm that institutional investors, corporations, and well-known individuals are acquiring significant amounts of residential real estate and land. For example:

  • According to a CoreLogic report published in 2024, investors accounted for 28% of single-family home purchases in the US. in Q3 2023. This was a record high, up from less than 20% in the first half of 2023.¹

  • The Wall Street Journal also reported that hedge funds and private equity firms, such as Blackstone, have spent billions acquiring homes to turn them into rental properties as home prices surged.²

  • A 2021 exclusive report by The Land Report revealed that Bill Gates is the largest private owner of farmland in the United States, with over 275,000 acres.³

Now that we know these purchases are happening, let's explore why.

Possible Reasons Why Corporations and Big Investors are Buying Land & Property

There are a few primary reasons driving these acquisitions by major corporations and famous investors:

  1. Diversification of Investment Portfolios: For investors, land and real estate are seen as more stable, long-term assets compared to equities, particularly in uncertain economic times. Private equity firms supply their investors with real estate investment trusts (REITs), especially composed of large multifamily properties in growing areas.

  2. Farmland and Food Security: Investors such as Bill Gates are focusing on farmland. His reasoning has been made public, stating his purchases are ultimately for poverty relief.

  3. Global Influence and Geopolitical Interests: In the case of China, land purchases in the US have sparked national security concerns. While on the surface, Chinese firms just seem to want diversified investments, some Americans fear underlying motivations.

Why Are Corporations Like BlackRock Buying Houses?

Image source: NBBJ.com

BlackRock seems to be building a vast portfolio of rental properties which would provide steady income streams and capitalize on the rising rental demand as homeownership becomes more difficult for average buyers.

With social governance being a core tenant of their company, they’re treading the line between making as much money as possible and not finding themselves in a PR crisis as homeownership becomes more difficult for average buyers.

In response to criticism about driving up home prices, BlackRock went on the defensive, stating that they are not buying single family homes, but rather building them. The firm has stated:

“Recently, BlackRock has been the subject of speculation, misperception, and even mistaken identity in media reports and on social media regarding our role in the US housing market.”

We want to make perfectly clear: BlackRock is not buying individual houses in the U.S.”⁴

Why is China Buying Land in America?

At one end of the spectrum, Chinese investors could simply want a piece of reliable US-based real estate for their portfolios. At the other end, some Americans fear something more sinister: a planned, coordinated plan of attack from within the United States.

To add to this fear, it has been reported that the US government has a tough time keeping tabs on exactly which countries have how much land in the States. Records for land deeds are kept at the county level and are not submitted to a single federal database.

Working against this idea is the fact that the United States is China’s largest export destination. The US also imports vast quantities into China. Ruining this cordial relationship seems unwise for both parties.

Chinese investors have made headlines for purchasing agricultural land and real estate in the US. According to GAO.gov, some foreign investment firms are buying land near military bases.5 China is one such example. With US-Chinese relations becoming increasingly strained, a security concern is presented.

A press release from Georgia State Representative Mike Collins states that Chinese ownership of American agricultural land has leaped by 30% from 2019 to 2020.⁵

Why Oprah Says She’s Buying So Much Land

Image Source: Oprah.com

Oprah Winfrey has amassed significant real estate holdings in recent years, particularly in Hawaii and California. Her land purchases, especially on Maui, have drawn public attention. She owns about 1,000 acres in Maui.

Some speculate that Oprah's land purchases are part of her personal commitment to conservation and sustainability. Others believe there are less admirable motivations. Bob Greene, Oprah's property manager and former personal trainer, expressed his concerns that “developers might swoop up the land and build condos”. 

According to Oprah’s own magazine, “O”, she “has no plan to build any condos”. Only time will tell.

“Oprah has fallen in love with Hawaii, especially in the wake of Maui’s devastating wildfires in 2023, saying “the aloha spirit is real, y’all.⁶”

Image source: GeekWire

Extreme Ideas Surrounding Why Bill Gates Has Bought US Farmland in Bulk

Bill Gates owns more US farmland than any other single private farmland owner. According to LandReport.com, Gates owns 275,000 acres. At the extreme end of theories surrounding the reasoning for his massive acquisitions lies the idea that Gates is trying to cause a food shortage, thus causing citizens to become more reliant on the government for survival.

Gates himself, during a Reddit AMA (an online “ask me anything” townhall-style interview), reassuredly stated:

“My investment group chose to do this. It is not connected to climate. The agriculture sector is important. With more productive seeds we can avoid deforestation and help Africa deal with the climate difficulty they already face. It is unclear how cheap biofuels can be but if they are cheap it can solve aviation and truck emissions.⁷”

Participate in High-Performing Texas Real Estate Investments

While many theories surround the motivations behind these land and house acquisitions, one thing we can all agree on is that real estate provides stability, security, and profit for investors small and large.

Capstone Capital Partners offers two attractive options for investors that believe in Texas real estate. Read more about them here:

Each option requires as little as $100K to start. As an established private lender since 2012 and having closed a combined $500M in real estate across the team’s careers, Capstone is a dependable family-owned firm. We’re more than happy to meet in person or by phone.

First, tell us a little about yourself. Let’s talk!

Jacob Smedley
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