Investors Snapped Up A Record Share Of Homes In The Spring Buying Season

Abstract

Investors Snapped Up A Record Share Of Homes In The Spring Buying Season Investors took more inventory off the market than they added to it in April. While investor purchases softened in January and February, investor purchases in April were up 31% over the same time in 2021 and 64% over the same time in 2019, while overall sales were down 8% compared to last year and up only 7% compared to 2019. Since February, investor purchases have moderated roughly in line with non-investor purchases, bringing their overall purchase share to 9.5%. Still, the share of investor buyers today is roughly double the share at the same point in 2014 and 2015. Investor buying activity resumed and investors continue to buy more homes than they sell, competing with home buyers more than sellers. Despite its recent retreat large investors purchased roughly one of every three investor-bought homes, taking market share from both small and medium-size investors. Investor purchase activity is highest in the South, which has seen the greatest growth in investor purchase activity in the last 12 months. In 2021, investor home purchases grew by 64% over 2020, a year in which investor activity was negatively affected by the pandemic.