The share of single-family homes purchased by investors went from 16% in 2020 to 24% in 2021, and the outsized presence of mega-investors raises concerns that they are driving up prices and muscling potential homeowners out of the market.
Fueled by the housing supply shortage and historically low mortgage rates during the pandemic, both home prices and rents hit new highs. With home price growth at record levels, some single-family investors sold their rental portfolios to extract the equity gains.
The share of single-family home purchases made by investors dropped by 8 percentage points from Q1 to Q2, suggesting that these buyers may be more sensitive to interest rate increases than owner-occupied buyers
Demand for luxury homes in vacation destinations intensified with sales surging by triple-digits.
Although the real estate market showed signs of receding in Q4 2021, investors resumed their buying spree in early 2022
Investors’ recent acquisition spree showed its first signs of slowing down in the fourth quarter of 2021. After hitting historical peaks in the second and third quarters of 2021, the share of homes purchased by investors reached its zenith last October at 26.9% of total home sales
In addition to elevated demand for owner-occupied and second homes since the onset of the pandemic, there has also been an increase in investor home purchases across the U.S. housing markets.
New home prices up less in 2021, but more over the last decade
Much like the record appreciation recorded in the CoreLogic Home Price Index, investor activity hit peaks previously unseen in CoreLogic data in the second quarter of 2021.
2021 is shaping up to be a very different year for investors than 2020. After pulling back their market activity at the onset of the pandemic, investors had a business-as-usual winter, before capturing the highest market share seen in the last 10 years in the second quarter. Figure 1 shows the sh...
Investor activity in real estate markets during the COVID-19 pandemic has mirrored the market as a whole.