Real Estate IRA Statistics 2026: Market Size, AUM, Holdings & Custodian Data
Real estate IRA statistics 2026 frame the longest-running asset class inside the self-directed IRA category. Real estate was eligible for IRA ownership before precious metals and decades before crypto. It remains the largest SDIRA asset class by dollar volume, though private equity has overtaken it on participation rate (71% vs declining real estate per STRATA Trust’s 2025 SDIRA Investor Survey). This page aggregates verified numbers on market size, custodian holdings, fees, average property values, UBIT exposure, and the Delaware Statutory Trust segment that has become the fastest-growing real-estate route inside IRAs. Self-Directed IRA Statistics 2026.
TL;DR
Real estate inside US self-directed IRAs represents an estimated $100–$150 billion in AUM, roughly 30–40% of the SDIRA category by dollar volume. Equity Trust ($81B SDIRA AUC, ~500,000 accounts) is the largest custodian; Madison Trust, IRAR Trust, The Entrust Group ($4B+, 45,000+ investors), and STRATA round out the top tier. Average property value held in an SDIRA cluster between $150K and $400K. Common annual fees: $275–$500 plus $20–$600 per real estate asset held. UBIT applies only above $1,000 of non-rental business income; rental income is exempt. The Delaware Statutory Trust (DST) market raised $4.86B in equity through August 2025, up ~40% year-over-year, and is the fastest-growing real-estate route for IRA investors. The August 2025 executive order opening 401(k)s to alternatives is expected to expand real estate access into employer retirement plans through 2026 and 2027.
Key real estate IRA statistics at a glance (2026)
| Metric | 2026 Figure | Source |
| Estimated US real estate IRA AUM | $100–$150 billion | Industry estimates |
| Estimated % of SDIRA AUM (by dollar) | ~30–40% | Custodian breakdowns |
| Average property value in SDIRA | $150K–$400K | Custodian disclosures |
| Equity Trust SDIRA AUC | ~$81B / ~500,000 accounts | Equity Trust, Jan 2026 |
| The Entrust Group AUC | $4B+ / 45,000+ investors | The Entrust Group |
| Madison Trust account maintenance | $50 setup + $105/quarter ($420/yr) | Madison Trust |
| Common annual SDIRA real estate fees | $275–$500 + per-asset | Custodian schedules |
| Real estate asset holding fee | $20–$600 per asset | Custodian schedules |
| UBIT trigger threshold | $1,000 of unrelated business income | IRC §511 |
| UBIT maximum rate | 37% | IRC §511 |
| Rental income UBIT treatment | Exempt (passive) | IRC §512(b) |
| DST equity raised through Aug 2025 | $4.864 billion | DST industry data |
| DST YoY growth (2025 vs 2024) | ~40% | DST industry data |
| US multifamily investment volume 2025 | $161.6B (+9.1% YoY) | CBRE |
| Industrial leasing activity 2025 | +12% (second-highest annual) | CBRE |
2026 self-directed IRA real estate market size assets under management number of accounts
The real estate IRA segment is the largest by dollar volume inside the SDIRA category. Equity Trust’s ~$81 billion in SDIRA AUC across ~500,000 accounts gives the clearest single-custodian anchor. Real estate is a major slice of that AUC, though the company does not publish an exact split. Add in Madison Trust, IRAR Trust, The Entrust Group ($4B+ across 45,000+ investors), STRATA, Inspira Financial, Advanta IRA, and uDirect, and combined real estate SDIRA AUM reasonably lands in the $100–$150 billion range.
Top real estate IRA custodians (2026)
| Custodian | AUC / Accounts (Public) | Real Estate Focus |
| Equity Trust Company | ~$81B / ~500,000 accounts | Largest by total AUC; full-service |
| The Entrust Group | $4B+ / 45,000+ investors | Strong real estate + private placement focus |
| Madison Trust Company | Privately disclosed | Real estate + private lending specialist |
| IRAR Trust Company | Privately disclosed | Low-flat-fee real estate custody |
| STRATA Trust Company | Privately disclosed | Real estate, PE, precious metals |
| Inspira Financial (fka Millennium Trust) | Privately disclosed | Institutional + retail directed custody |
| Advanta IRA | Privately disclosed | Real estate, private placements |
| uDirect IRA Services | Privately disclosed | Real estate specialist |
Account counts in the real estate IRA category are difficult to isolate from total SDIRA account counts. Industry estimates put dedicated real estate SDIRA accounts in the 400,000–600,000 range nationally, with the average account holding 1–2 properties or 1–3 syndication interests.
2026 self-directed IRA real estate holdings data United States assets real estate percentage alternative assets
Real estate represents roughly 30–40% of total US SDIRA holdings by dollar value, the single largest alternative-asset category. The split looks different by participation rate vs by dollar:
| Alternative Asset Category | % of SDIRA Investors (STRATA 2025) | % of SDIRA Dollar Volume (est.) |
| Real estate (direct + syndications) | Declining from 2023 levels | ~30–40% (largest) |
| Private equity | 71% (leading by participation) | ~20–25% |
| Precious metals | Stable allocation | ~10–15% |
| Cryptocurrency | Fastest-growing entrant | ~5–10% |
| Private debt / promissory notes | High among HNW investors | ~10–15% |
| Other (notes, partnerships, etc.) | Smaller share | ~5–10% |
This is the key distinction most articles miss. Private equity has more SDIRA holders, but real estate has more SDIRA dollars. Property purchases are large per transaction, which inflates dollar share, while PE positions can be smaller and more numerous.
Holdings format inside real estate IRAs
- Direct title — IRA custodian holds the deed directly. Most common for single-property investors.
- IRA-owned LLC (“checkbook control”) — LLC is the titleholder, owned by the IRA. Faster transactions; more compliance responsibility on the investor.
- Real estate syndications — IRA buys an LP interest in a sponsor-led deal. Passive income, no direct management.
- Delaware Statutory Trusts (DSTs) — fractional ownership of institutional-grade properties; popular for 1031-style rollovers and SDIRA diversification.
- Real Estate Investment Trusts (REITs) — publicly-traded or private; can be held in any IRA, not just SDIRAs.
- Mortgage notes / trust deeds — IRA acts as the lender, earning interest payments.
2026 real estate IRA assets under management statistics self-directed IRA market size
No IRS data series breaks out real estate IRA AUM as a line item. The segment is sized by combining three anchors:
- SDIRA custodian public disclosures: Equity Trust ($81B AUC), Entrust ($4B+), Columbia Private Trust ($18B). Real estate is a meaningful slice of each.
- STRATA 2025 SDIRA Investor Survey: nearly 700 investors holding ~$3B combined in PE, private debt, and real estate. Real estate is the largest dollar component.
- GAO-17-102: 17 of 26 surveyed custodians held nearly 500,000 unconventional-asset accounts at year-end 2015, with real estate the single most common asset type.
Combining these, the real estate IRA segment sits at an estimated $100–$150 billion in AUM in 2026 across an estimated 400,000–600,000 dedicated accounts. That makes it roughly 30–40% of the broader SDIRA market by dollar volume and the largest single alternative-asset category inside self-directed retirement accounts.
Comparison anchors for context: total US IRA market is $19.2 trillion (ICI Q4 2025). Real estate IRAs are roughly 0.5–0.8% of that total. The category is small relative to all IRAs but it is the dominant slice of the SDIRA niche.
2026 self-directed IRA real estate holdings percentage assets
Real estate’s percentage share of SDIRA holdings looks different depending on which dimension you measure:
- By dollar volume: ~30–40% of total SDIRA AUM. Largest single alternative-asset category.
- By account count: estimated 400,000–600,000 SDIRA accounts hold at least one real estate asset, roughly one-third of all SDIRA accounts.
- By participation rate in surveys: declining from 2023 highs per STRATA 2025; private equity now leads at 71%.
- By transaction frequency: lower than PE or crypto (real estate transactions are infrequent, large-ticket events).
- Within real estate specifically: residential properties dominate (single-family, multi-family rentals), commercial is a smaller share, raw land and notes are minor.
Property type breakdown (dealer-estimated)
| Property Type | Approx. Share of RE IRA Value | Notes |
| Single-family rentals | ~30–35% | Most common entry-level holding |
| Multi-family / small apartment | ~20–25% | Steadier cash flow profile |
| Commercial (office, retail, industrial) | ~10–15% | Declining slightly per 2025 STRATA |
| Real estate syndications / DSTs | ~15–20% | Fastest-growing route |
| Raw land | ~5–8% | Long-term appreciation play |
| Mortgage notes / trust deeds | ~5–10% | IRA as lender |
| REITs (held inside SDIRA) | Variable | Often held in standard IRAs instead |
2025 2026 real estate IRA industry statistics custodians average property value self-directed IRA
Industry trend lines (2025–2026)
- Real estate allocations inside SDIRAs declined from 2023 levels per STRATA 2025, attributed to higher borrowing costs and commercial-property pressure.
- Residential investments are showing modest recovery — investors shifting toward smaller single-family projects rather than commercial deals.
- Delaware Statutory Trust (DST) market raised $4.864B in equity through August 2025, up ~40% YoY. The DST route is absorbing a growing share of new real estate IRA flow.
- US multifamily investment volume reached $161.6B in 2025 (+9.1% YoY); industrial leasing volume +12% (second-highest on record).
- The August 7, 2025 executive order opened 401(k)s to alternative assets including real estate. Implementation will take months to years, but it expands the addressable market.
Average property value held in real estate IRAs
Average property value clusters by custodian profile:
- Entry-level / first-time real estate IRA investors: $100,000–$200,000 single-family properties (most common range).
- Mid-range: $200,000–$400,000 properties, typically multi-family or higher-quality single-family rentals.
- Higher-end: $400,000–$1M+ commercial or larger multi-family. Less common; usually held via IRA-owned LLC.
- DST and syndication interests: average position size $25,000–$100,000 per subscription, with investors typically holding 2–4 positions.
Custodian fee benchmarks for real estate IRAs
| Fee Type | Typical 2026 Range |
| Account setup | $50–$300 one-time |
| Annual maintenance | $199–$500 (Madison Trust: $420; IRAR: $199 first asset) |
| Per-asset real estate holding fee | $20–$600 per property |
| Per-additional-asset fee | $75–$150 each |
| Transaction fee (buy/sell/notarize) | $50–$200 |
| Wire / check / fax | $25–$50 each |
| Document review (private placements) | $50–$250 |
| Termination | $100–$250 |
Total annual cost for a real estate IRA holding one property typically lands at $300–$700. Add a second property and costs commonly rise by $75–$150 per additional asset. Custodians using asset-value-based pricing can charge much more on appreciated properties; flat-fee custodians are usually cheaper for higher-value holdings.
Property types eligible in real estate IRAs
| Property Type | IRA-Eligible? | Notes |
| Single-family rental | Yes | Most common holding |
| Multi-family / apartment | Yes | Includes 2–4 unit and larger |
| Commercial (office, retail, warehouse) | Yes | Common at higher account sizes |
| Vacation rental / short-term | Yes | Owner cannot personally use |
| Raw / undeveloped land | Yes | Long-term appreciation only |
| Mortgage notes / trust deeds | Yes | IRA acts as lender |
| REITs (public or private) | Yes | Eligible in any IRA, not just SDIRA |
| Delaware Statutory Trusts | Yes | Fractional institutional property |
| Real estate syndications (LP interests) | Yes | Passive ownership in sponsor deals |
| Foreign real estate | Yes | Compliance more complex; verify with custodian |
| Primary or secondary residence (personal use) | No | Personal-use property prohibited |
| Property used by disqualified persons | No | Self, spouse, lineal family, controlled entities |
UBIT and UDFI: taxes that hit real estate IRAs
IRAs are tax-exempt, but two exceptions apply specifically to real estate IRAs. Both are governed by IRC §511–514:
- UBIT (Unrelated Business Income Tax). Triggered when the IRA earns income from a trade or business not substantially related to its tax-exempt purpose. Maximum rate: 37%. Threshold: $1,000 of unrelated business income per year. Rental income from real estate is exempt (treated as passive).
- UDFI (Unrelated Debt-Financed Income). Triggered when the IRA uses non-recourse leverage to buy real estate. The portion of income and gain attributable to the debt-financed share is subject to UBIT.
- Form 990-T. Required filing for any IRA with $1,000+ of UBIT or UDFI exposure.
- Common UBIT/UDFI scenarios: IRA-owned LLCs that flip properties (treated as a trade or business), syndications using leverage, real estate businesses operated inside an IRA.
Most investors using SDIRAs for buy-and-hold rentals without leverage avoid UBIT entirely. Investors using non-recourse loans inside the IRA, or operating active real estate businesses (flipping, development, short-term-rental management at scale), need to plan for UDFI exposure and file Form 990-T. Both GAO reports (GAO-17-102, GAO-20-210) flagged UBIT/UDFI as a frequent compliance gap.
DST market — the fastest-growing real estate IRA route
Delaware Statutory Trusts have become the dominant route for new real estate IRA flow because they solve three pain points: large institutional-property exposure at low minimums, no direct management responsibility, and clean fractional ownership structure that fits IRA custody.
| DST Metric | Value | Source |
| Equity raised through Aug 2025 | $4.864 billion | DST industry data |
| YoY growth (2025 vs 2024 same period) | ~40% / +$1.38B | DST industry data |
| August 2025 single-month raise | $680 million | DST industry data |
| Typical IRA investor DST position | $25,000–$100,000 | Custodian disclosures |
| Typical underlying DST asset | Multifamily, industrial, net-lease | Industry composition |
DST growth tracks the broader 1031-exchange market — many DST positions come from investors rolling out of directly-owned property into DST replacement properties. The same structure works cleanly for IRAs that want institutional real estate exposure without the operational complexity of direct ownership.
Prohibited transactions specific to real estate IRAs
General SDIRA risks (full prohibited-transaction framework, custodian considerations) covered in the SDIRA hub. Real estate specific traps:
- Personal use of property. Cannot stay overnight, use as a vacation home, or have a disqualified family member use it. Even a single night of personal use can trigger disqualification.
- Sweat equity. Cannot personally renovate, paint, or repair IRA-owned property. All work must be paid for by the IRA to an unrelated third party.
- Receiving rent or fees directly. All income flows to the IRA, not to the owner.
- Self-dealing on purchases or sales. Cannot buy property from yourself, your spouse, your parents, your children, or entities you control 50%+ of.
- Personal guarantees on IRA-owned property loans. Must use non-recourse financing (which then triggers UDFI on the leveraged portion).
McNulty v. Commissioner (157 TC 10, 2021) is the most-cited recent precedent on home-storage gold IRAs. The principle applies to real estate too: physical control or personal benefit collapses the IRA structure. Triggering a prohibited transaction disqualifies the entire IRA retroactive to January 1 of the year the transaction occurred.
Methodology and sources
Data current as of May 23, 2026. AUM and account-count estimates are bottom-up constructions from public custodian disclosures and industry survey data; the IRS does not publish a separate real-estate-IRA line item. Property-type and average-value distributions are dealer- and custodian-estimate based and are labeled as such.
Primary sources
- STRATA Trust Company — 2025 SDIRA Investor Survey (via RITA)
- Investment Company Institute (ICI) — Quarterly Retirement Market Data, Q4 2025
- Government Accountability Office, GAO-17-102 — Retirement Security: Risks of Unconventional Assets
- Government Accountability Office, GAO-20-210 — IRS Could Better Inform Taxpayers
- IRS — IRC §4975 (Prohibited Transactions)
- IRS — IRC §511–514 (UBIT and UDFI)
- IRS — Form 990-T (Exempt Organization Business Income Tax)
- IRS — Notice 2025-67 (2026 contribution limits)
- Equity Trust Company — public disclosures, January 2026
- The Entrust Group — public disclosures
- Madison Trust Company — fee schedule
- IRAR Trust Company — fee comparison
- White House — Executive Order on Alternative Assets in 401(k)s (Aug 7, 2025)
- CBRE — US Multifamily Investment Volume 2025
- Retirement Industry Trust Association (RITA)
Internal references
Key takeaways
- Real estate IRA segment: estimated $100–$150 billion AUM in 2026, ~30–40% of total SDIRA market by dollar volume — the largest single alternative-asset category.
- Estimated 400,000–600,000 dedicated real estate SDIRA accounts in the US.
- Real estate is largest by dollars; private equity (71% of SDIRA investors) is largest by participation rate per STRATA 2025.
- Top custodians: Equity Trust (~$81B SDIRA AUC, ~500K accounts), The Entrust Group ($4B+, 45K+), Madison Trust, IRAR, STRATA.
- Average property value in SDIRA: $150K–$400K typical, with $100K–$200K most common for entry-level investors.
- Annual cost for a single-property real estate IRA: $300–$700 typical (setup $50–$300, maintenance $199–$500, holding $20–$600/asset).
- DST market raised $4.86B in equity through August 2025, up ~40% YoY — the fastest-growing real-estate-IRA route.
- UBIT applies to non-rental business income above $1,000 (max rate 37%); rental income is exempt. UDFI applies to debt-financed real estate.
- Prohibited transactions: personal use, sweat equity, dealing with disqualified persons. McNulty v. Commissioner (157 TC 10, 2021) is the recent precedent.
- August 7, 2025 executive order opens 401(k)s to alternatives including real estate; implementation rolls through 2026 and 2027.
FAQs
How big is the real estate IRA market in 2026?
Estimated $100–$150 billion in US AUM across 400,000–600,000 dedicated accounts. Real estate is the largest single alternative-asset category inside SDIRAs by dollar volume, roughly 30–40% of total SDIRA AUM.
What percentage of SDIRAs hold real estate?
Estimated one-third of US SDIRA accounts hold at least one real estate asset. By participation rate in investor surveys, real estate has declined from 2023 levels (STRATA Trust 2025) and now trails private equity at 71%.
What is the average property value in a real estate IRA?
Common range is $150,000–$400,000 for single-property holdings. Entry-level investors cluster at $100K–$200K single-family. Higher-end holdings can run $1M+, typically via IRA-owned LLCs.
Who are the largest real estate IRA custodians?
Equity Trust ($81B SDIRA AUC, ~500,000 accounts) is the largest by total AUC. The Entrust Group ($4B+, 45,000+ investors), Madison Trust, IRAR Trust, STRATA, Inspira Financial, Advanta IRA, and uDirect round out the top tier.
What does a real estate IRA cost annually?
$300–$700 typical for a single-property account. Setup $50–$300 one-time, annual maintenance $199–$500, real estate holding fee $20–$600 per asset. Additional properties add $75–$150 each.
What is UBIT and does it apply to my real estate IRA?
UBIT (Unrelated Business Income Tax) applies when an IRA earns income from a trade or business unrelated to its tax-exempt purpose. Max rate 37%; triggered above $1,000 in unrelated business income. Rental income from real estate is exempt. UBIT typically hits flipping, development, and leveraged purchases (via UDFI).
Can I live in or use my IRA-owned property?
No. Personal use by you, your spouse, lineal ascendants and descendants, or controlled entities is a prohibited transaction. Even a single night of personal use can disqualify the IRA.
How fast is the DST market growing inside IRAs?
DST equity raises hit $4.864B through August 2025, up ~40% YoY. The DST structure has become the fastest-growing real estate IRA route because it offers institutional-grade property exposure at $25K–$100K minimums without direct-ownership operational complexity.
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