Investors snap up growing share of US homes as traditional buyers struggle to afford one

[usonian]

To you, it's a home. To them, it's a Monopoly game.




https://abcnews.go.com/Business/wireStory/investors-snap-growing-share-us-homes-traditional-buyers-123560969

Real estate investors are snapping up a bigger share of U.S. homes on the market as rising prices and stubbornly high borrowing costs freeze out many other would-be homebuyers.

Nearly 27% of all homes sold in the first three months of the year were bought by investors -- the highest share in at least five years, according to a report by real estate data provider BatchData.

Between 2020 and 2023, the share of homes bought by investors averaged 18.5%.

All told, investors bought 265,000 homes in the January-March quarter, an increase of 1.2% from the same period a year earlier, the firm said.

[Silent Type]

1. Interesting that 85% of "investors" own from 1 to 5 houses. Not huge companies.

“Even so, investor-owned homes account for roughly 20% of the nation's 86 million single-family homes, the firm said.

“Of those, mom-and-pop investors, or those who own between 1 and 5 homes, account for 85% of all investor-owned residential properties, while those with between 6 and 10 properties account for another 5%.”

[usonian]

2. I remember when buses toured homes for sale

People with some dough. Individuals, so I can see individuals and families speculating with their mad money.

I looked at a home or two, and they looked like the same contractor upgraded them.

That part would be the big player(s).

[Silent Type]

3. Small time real estate has made many millionaires, and losers. Remember promise of trump university?

No interest in real estate other than as home. Would like to see focus on smaller homes.

[usonian]

4. Con man.

He never wrote anything. Ghost Writers in the Skies.

Otherwise the books would be ALL CAPS.

[LogDog75]

5. The problem with corporate investors buying homes is

pushing the individual home buy out of the market because the corporate investors can outbid them. Part of the reason for home prices in California rising is because of corporate investors snatching up homes. This causes an affordable strain on existing homes because each home sold to a corporate investor who pay above market prices to get the house to increase the value of the homes nearby. The increased market value of the neighboring homes further distances the ability of a home buyer from being able to afford a home at a higher price.

It's a vicious cycle.