As housing affordability challenges persist across the U.S., institutional investors are increasing their presence in the residential real estate market, a trend some see as validation of real estate ownership as a long-term investment vehicle. However, critics argue it risks sidelining individual buyers and has resulted in an affordability crisis. Recently, legislation has been put forth by lawmakers in New York, Virginia, New Mexico and Georgia to limit this growing trend.
Fundrise CFO Alison Staloch, whose firm targets markets where housing demand outpaces supply, sees the momentum as reinforcing the case for real estate as an accessible investment. Her insights on the intersection of institutional capital and home affordability, along with the evolving expectations of Gen Z investors, reflect two trends with significant implications for her business. She also shares her views on cybersecurity as a finance function, reflects on her transition out of public accounting and weighs in on proposed changes to CPA licensure requirements.
Alison Staloch
CFO, Fundrise
First CFO Position: 2021
Notable previous employers:
- U.S. Securities and Exchange Commission
- KPMG US
This interview has been edited for brevity and clarity.
ADAM ZAKI: Does the increasing involvement of institutional investors like BlackRock and Vanguard help validate the asset class for your investors, or would you prefer to see greater homeownership among individual buyers who may be struggling with affordability?
ALISON STALOCH: On affordability — more renters means more demand, which is our opportunity. The housing crisis is a supply issue. We invest where more housing is needed, which aligns impact with opportunity. That includes single-family rental communities, build-to-rent developments and multifamily housing. The U.S. is short millions of units — I’ve seen estimates between three and six million — and that shortage drives affordability issues while reinforcing long-term rental demand.
We focus on markets with job growth and population inflows. This is where affordability challenges create sustained rental need. So when we invest, we’re trying to address supply in a way that meets real demand and also makes financial sense. Maybe someone can’t buy the house they want right now, but they can rent it and that’s valuable too.
As for the bigger institutional investors, we’re seeing more of them enter the space, and it validates what we’ve long believed: residential real estate is durable, attractive and fundamentally strong. Their interest underscores the same drivers we’ve focused on. Supply shortages, rental demand and appreciation potential.
Austin, Texas is a good example of this. But now, insurance costs and taxes are becoming challenges in places like Texas. We still believe the Sun Belt states are smart plays today, though climate change might shift that over time.
Some other investment apps have gotten into sports gambling in order to attract Gen Z clients. How does Gen Z and their financial habits play into your organization’s growth goals?
Gen Z isn’t anti-investing, they just want to do it differently. They want real assets, not just stocks, and they want early access. They’re digital-first and self-directed. They don’t want to talk to a traditional advisor. They want to do the research and allocate capital themselves.
They’re also drawn to transformative tech. A recent survey we ran showed 68% of retail investors believe AI has the highest growth potential, more than climate tech, e-commerce or crypto. And, two-thirds said they’d be more likely to invest in a product if they could access companies before they go public.
That’s something regulators are thinking about too, how to open private markets safely to retail investors. So it’s all evolving quickly.
Returns are king. If the returns aren’t there, the experience doesn’t matter. That said, Gen Z expects a smooth, transparent product experience. They want the information fast and accessible. But, without returns, none of that sticks.
When it comes to cybersecurity, are you hands-on, or is it something where you allocate and leave it to IT?
Our [chief technology officer] leads it, but legal, finance and IT collaborate closely on resource allocation and prioritization. Securing investor data and transactions is table stakes. Prevention costs less than a breach, so we invest heavily there. For other areas, we use risk assessments to phase in improvements.
We also embed best practices across the organization. It’s part of the culture. For example, our treasury team handles high-dollar wire transfers, so we run regular exercises, like Socratic seminars, to game out threats. One scenario we discuss is deepfakes: a fake CEO asking for a wire transfer. We ask, “How would we know? How would we stop it?” It keeps everyone alert.
It’s a topic that comes up daily. It’s woven into everything, even if we’re not calling it “cybersecurity.” It’s just part of how we operate now.
Early in your career, you stayed in public accounting for over 10 years. Why’d you stay so long? And what gave you the courage to leave?
Honestly, I thought I’d be a lifer. I respected the career path and the role of auditors. But around that 10-year mark, I was looking for my next move. I thought maybe it would be a rotation to a national office.
Then the opportunity came up to do a fellowship at the SEC. People often return to their firms after, but I loved the experience. I ended up staying on as chief accountant for the Division of Investment Management. Eventually, I met Ben Miller, Fundrise’s CEO, and loved his vision. I saw it as a chance to build something new rather than just operate in an institutional system.
I want to ask about your take on CPA licensure changes. You were certified in Ohio, which was one of the first states to change the 150-hour requirement. There’s so much debate about this. Some say it lowers the bar, others say it’s needed to address the shortage. What’s your take on it?
Personally, I don’t love bright-line rules. My practical experience was far more valuable than any specific class I took. A fun fact, I was pre-med, neuroscience minor, psych major. I took zero accounting classes as an undergrad. I took one accounting class after graduating and thought, “This is easier for me than science.” So I did a master’s in accounting and never looked back.
That said, I think having a more diverse educational background has helped me in leadership. Experience matters more than just racking up 150 credit hours. The real question is whether that extra year is truly the barrier. I think awareness is a bigger issue, because people don’t realize how dynamic accounting can be. It’s like coming in through the back door of a business, you see everything.
