Investors buy more

Nearly 27 % of all the houses sold in the first three months of the year were purchased by investors – the highest share in at least five years, according to a report issued by the real estate data provider.

Between 2020 and 2023, the average share of houses bought by investors was 18.5 %.

The company said that investors bought 265,000 homes in the quarter of January, an increase of 1.2 % over the same period in the previous year.

Despite the modest annual increase, the rise in the share of the home purchases of investors is more reflection of the slowdown in the housing market with the presence of traditional buyers with increasing restrictions on costs, according to Batchdata.

The American housing market has been in a state of decrease in sales since early 2022, when mortgage rates began to climb from their lowest levels in the epidemic. House sales fell last year to their lowest level In nearly 30 years.

They remained slow To date this year, many potential home buyers have been thwarted High mortgage rates And the prices of homes that continued to climb, though more slowly.

As home sales slowd down, real estate takes longer for sale. This has led to a severe stock of homes in the market, as it benefits other home investors and shoppers who can overcome the current mortgage rates by paying cash or benefit from home stock gains.

“While traditional buyers fight with the ability to withstand costs, investors with cash and financing intervene to maintain the volume of transactions,” according to the report.

Batchdata analyzes US home sales records to determine the properties purchased by investors. These homes or rents can include holidays, but not our primary headquarters for Jupiter.

Investors bought 1.2 million homes in 2024, up from 1.1 million homes per year dating back to 2020, according to Batchdata.

However, the houses owned by the investors account for about 20 % of the 86 million families in the country, the company said.

Among them, investors from the mother and pop, or those who own between 1 and 5 houses, represent 85 % of all residential properties owned by investors, while those that range between 6 and 10 real estate represents another 5 %.

The company said that institutional investors who own 1,000 or more homes represent only about 2.2 % of all houses owned by investors.

This number may become smaller, amid signs that adult institutional investors are expanding home purchases.

Among a group of eight of the largest companies that own and rent homes with a single family, including HOMES Invation Home and America 4 Rent, six houses were sold in the second quarter of what they bought, according to data from Parci Labs.