How to Find Accredited Investors for a Real Estate Syndication
A data-backed system for multifamily sponsors and syndicators who have tapped out friends, family and past LPs.
Read →Short answer
About 24.3 million US households, or 18.5% of all households, qualified as accredited investors in 2022, according to the SEC staff's December 2023 review. That is up from 1.51 million households (1.8%) in 1983. Because the $200,000 income and $1 million net worth thresholds have never been indexed to inflation, the SEC staff projects that roughly 30% of households could qualify by 2032.
Key takeaways
- 24.3M households (18.5%) qualified in 2022.
- Only 1.51M households (1.8%) qualified in 1983.
- If thresholds had tracked inflation, only about 8.5M households (6.5%) would qualify.
- The SEC staff projects about 30% of households could qualify by 2032 if thresholds stay unchanged.
The numbers
24.3MAccredited households in 2022SEC staff
18.5%Share of US householdsSEC staff
16xGrowth in qualifying households since 19831.51M → 24.3M
~30%Projected share by 2032 without indexingSEC staff
Share of US households that qualify as accredited
Percent of households
Who qualifies as an accredited investor?
| Path | Requirement (natural persons) |
|---|---|
| Income | $200,000+ individual income, or $300,000+ joint with a spouse or spousal equivalent, in each of the last two years, with the same expected this year |
| Net worth | $1 million+, alone or with a spouse or spousal equivalent, excluding the primary residence |
| Professional credentials | Holders in good standing of Series 7, Series 65 or Series 82 licenses |
| Knowledgeable employees | Of the private fund offering the securities |
Entities have separate tests, such as $5 million in assets for many entity types. Confirm current rules with counsel.
What if thresholds were adjusted for inflation?
Inflation adjustment would shrink the pool
Households qualifying in 2022, millions
Adjusting the 1982 thresholds for inflation would cut the qualifying pool by roughly two thirds. Proposals to change the definition come up periodically, so sponsors should watch for updates rather than assume the pool will keep growing.
What does this mean for sponsors?
- The pool is large. Your constraint is reach and trust, not the number of eligible investors.
- Many new accredited investors are new to private markets. Education matters more than ever.
- Accreditation is not the same as fit. Qualify on check size, timeline and goals as well.
- Capital competition is intense. Reg D offerings raised an estimated $2.148 trillion in 2024 across 32,544 new filings.
Turn the market into a pipeline
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Frequently asked questions
About 24.3 million households, or 18.5% of US households, qualified as accredited investors in 2022, according to SEC staff estimates published in December 2023.
The SEC measures households rather than individuals. In 2022, about 18.5% of US households met the income or net worth test.
The thresholds set in 1982 ($200,000 income, $1 million net worth) have never been adjusted for inflation, so rising incomes and asset values have pushed more households over the line.
The SEC reviews the definition periodically and has added professional-credential paths. Thresholds have not been indexed to inflation. Check current rules with counsel before relying on them.
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Sources
This article is for educational purposes only and does not constitute legal, tax, securities or investment advice, or an offer to sell or a solicitation of an offer to buy any security. Consult qualified securities counsel about your specific offering.
