Life Insurers: Driving Growth and Stability in America’s Housing Market

Since the Global Financial Crisis (GFC), the life insurance industry’s important role in supporting homeownership in the United States has grown substantially. Investments in residential mortgages by America’s life insurers have risen 13 times faster than the total residential mortgage market.

As of 2024, life insurers hold more than $660 billion in residential mortgages and residential mortgage-backed securities (RMBS) throughout the nation. In fact, life insurers hold residential mortgages in more than 80 percent of all U.S. zip codes.

Life insurers now hold more residential mortgages than any time in their history. This reflects the overall growth of the life insurance sector and housing market, as well as the growing relevance of residential mortgage investments and their permanence.

Life insurer investments in mortgages are nothing new. They have been investing in the mortgage market for over 150 years. Life insurers are natural partners in homeownership because they are uniquely positioned to seek long-term investments like mortgages. With long-term commitments that could stretch decades like annuities and life insurance, life insurers look to invest in long-duration, investment-grade assets. Residential mortgages and RMBS offer predictable cash flows, collateralization, and attractive yields, making them ideal matches for life insurers’ long-term liabilities.

Life insurers also invest in high-quality commercial and farm mortgages, fueling growth in urban and rural America. As of 2024, life insurers held more than $1.41 trillion in residential and non-residential mortgages and mortgage-backed securities. Life insurers’ mortgage investments, whether they are residential, commercial, or farm, comprise 9.4 percent of their total assets.

Through long-term investments in residential mortgages, life insurers are helping families across the country achieve the dream of owning a home. This capital provides critical funding for homebuyers and supports the health of the U.S. housing market.

William Harrison

William Harrison serves as a Policy Analyst with the American Council of Life Insurers (ACLI). In this capacity, William supports the ACLI Life Insurance Committee, the ACLI Global Risk Management & Regulation Committee, and several working groups on matters relating to policy development and regulatory compliance. Prior to joining ACLI, William worked at the Government Accountability Office and research centers affiliated with Rutgers University.