How Many Homes Are Investors Actually Buying?

Are Investors Really Buying All the Homes? You might think that big investors are grabbing all the houses, making it tough for average buyers to find a place. However, there's a lot of misinformation out there. The Wall Street Journal reports that during the pandemic, investors did buy a lot of homes—over 25% of single-family homes at the peak in 2022. But since then, their activity has slowed significantly due to rising interest rates and tighter supply. Even at their peak, 75% of homes were bought by regular buyers, not investors. Most of these investors were small, mom-and-pop buyers, not the large firms you often hear about. When big investor firms did buy homes, their share was very small. According to the Wall Street Journal, these institutional investors bought only about 2% of single-family homes even at their peak, and this percentage has decreased further. These big investors are facing challenges like higher prices, limited inventory, and increased financing costs, showing they aren't taking over the housing market. **Bottom Line** Big investors aren't dominating the market. If you have questions about the housing market, let's talk. I can help you understand the facts and navigate your options.

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