Let’s face it – buying a home these days can feel like a marathon. You’re scouring listings, visiting open houses, and dealing with stiff competition. Along the way, you might’ve heard that Wall Street investors are buying up all the homes, making it harder for buyers like you.
But don’t worry – that’s not the full story. According to Redfin, investors make up just a small fraction of the market.
Here’s the good news: five out of every six homes are being purchased by people just like you, not by major investors.
Before you let doubts creep in, let’s dive into what’s really happening. You’ll see that Wall Street might not be the obstacle you thought it was!
Most Investors Are Everyday People
Contrary to popular belief, most real estate investors aren’t massive corporations. A CoreLogic report reveals that the majority are small, mom-and-pop investors owning fewer than 10 properties. These are often your neighbors renting out a second home or managing a vacation property.
Large-scale investors with thousands of properties make up just 1% of the market. The majority remains in the hands of everyday people, not corporate giants.
Investor Purchases Are Slowing Down
If you’ve been concerned about investor competition in the housing market, there’s good news. Investor purchases have been on the decline. As CoreLogic shares:
“Investors made 80,000 purchases in June 2024, compared with 112,000 in June 2023, and a nearly 50% percent drop from the high of 149,000 purchases in June 2021 . . .”
The trend is expected to continue into 2025, which could mean less competition for you moving forward.
So, if it feels like investors are taking over, this slowdown might be just what you need to re-enter the market.
Bottom Line
The claim that Wall Street is dominating the housing market is largely exaggerated. The majority of investors are smaller ones, and in fact, the percentage of homes bought by investors is dropping. So, you can cross this worry off your list.
Curious about the housing market? Let’s have a conversation!