Are big investors really buying up all the homes today?
If you're looking to buy a house, you might wonder if big investors are snapping up all the homes, making it harder for regular buyers. You may have seen this on social media, but there's a lot of misinformation out there. Here's the real story: most of the big investor activity is already behind us.
The Wall Street Journal explains that investors, big and small, spent billions buying homes during the pandemic. At the peak in 2022, they bought more than one in four single-family homes. However, their activity has slowed as interest rates rose and housing supply became tighter.
Even during the peak, 75% of single-family homes were bought by regular buyers, not investors. Most investors were small, like your neighbors who might own just a couple of homes.
Let’s talk about the mega-investors, those with 1,000+ properties, who are often mentioned on social media. According to the Wall Street Journal, they never bought a large percentage of homes. At their peak in 2022, they bought only about 2% of single-family homes. Recently, this percentage has dropped even further.
Private lender RCN Capital found that investors are facing challenges like rising prices, limited inventory, and higher financing costs, which means mega-investors aren't taking over the housing market.
So, don't believe everything you hear. Big investors aren't buying all the homes and making it impossible for regular people to buy. If you have questions about the housing market, talk to a local real estate agent for accurate information.
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