Keeping Current Matters May 23, 2024
Buyer
Are big investors really buying up all the homes today?
If you’re trying to find a house to buy, this may be something you’re wondering about. Maybe you’ve read about it or seen reels on social media saying investors buying all the homes is making it even harder to find what the average buyer is looking for. But spoiler alert – there’s a lot of misinformation out there. To clear things up, here's the scoop on what's really happening. A lot of the big investor activity is actually in the rearview mirror already.
The Wall Street Journal (WSJ) explains:
“Investors of all sizes spent billions of dollars buying homes during the pandemic. At the 2022 peak, they bought more than one in every four single-family homes sold, though more recently their activity has slowed as interest rates rose and supply became tighter.”
The key here is investor activity has slowed significantly, and even during the peak of investor buying, 3 out of every 4 single-family homes purchased were by regular, everyday buyers – not investors. And of the investors who bought over the past few years, most weren’t the big investors you may be hearing about. The vast majority were small mom-and-pop investors – people like your neighbors who own only a couple of homes, maybe even just their main residence and a vacation home.
But let’s focus on the giant, mega-investor firms since that's what is being talked about so frequently on social media right now. Mega investors are those who own 1,000+ properties. You may be surprised to see that, according to the Wall Street Journal, they don’t buy all that many homes (see graph below):
This graph tells us two things. First, institutional investors were never buying a large percentage of available homes. During the peak in 2022, they bought about 2% of available single-family homes. Second, that percentage has gotten even smaller recently (so small the number rounds down to 0%).
In an effort to understand why that percentage is trending down, private lender RCN Capital asked investors about the challenges they’re facing. Here’s what Jeffrey Tesch, CEO of RCN Capital, found out:
“Investors are already facing many challenges in today’s housing market – rising prices, limited inventory, and higher financing costs.”
Understanding these challenges is important because they show big, mega investors aren’t taking over the housing market.
So, don't fall for everything you hear. They aren't snatching up all the homes and making it impossible for regular people to buy.
Big investors aren’t buying all the homes out there. If you've got questions about what you're hearing about the housing market, let's chat. I can help you understand what's really going on.
Stay up to date on the latest real estate trends.
Buyer
July 10, 2025
Mortgage application activity shot up like a firework during the week ending July 4, according to data from the Mortgage Bankers Association (MBA).
Seller
July 10, 2025
If you're a homeowner planning to move, you're probably wondering what the process is going to look like and what you should tackle first:
Lifestyle
July 10, 2025
If you are a regular House Beautiful reader, you have probably noticed that we editors consult professional organizers a lot.
Lifestyle
July 9, 2025
We’re living through a paradox.
Buyer
July 9, 2025
Now that summer’s here, you may be planning your next getaway.
Lifestyle
July 8, 2025
You never know how much stuff you have until you’re packing up your entire home to move to a new one.
We Guide Homeowners through the complicated process of selling their home using our 4 Phase Selling Process and 3 Prong Marketing Strategy that alleviates their stress and moves them effortlessly to their next destination. Schedule a 15 Minute Complimentary Strategy Session Today