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If you’re in the market to buy a home, you might feel like you're competing against deep-pocketed investors snatching up everything available. Many people believe mega investors are driving up prices and making it nearly impossible for everyday buyers to secure a home.
But here’s the truth: investor purchases are actually on the decline, and big players aren’t nearly as active as you might think. Let’s break down the facts and help you see the real opportunities in today’s housing market.
Most Investors Are Small, Not Large Institutions One of the biggest misconceptions is that massive institutional investors dominate the market. But that’s not the case. The Mortgage Reports explains:
“On average, small investors account for around 18% of the market, while mega investors represent only about 1%.”
That means most real estate investors are everyday people—your neighbors, local landlords, or families with a second home. They’re not large corporations buying up entire neighborhoods, as the headlines may suggest.
Investor Home Purchases Are Dropping While there are still investors in the market, even the bigger ones have slowed down. According to John Burns Research and Consulting (JBREC), at their all-time peak in Q2 2022, institutional investors—those owning 1,000+ single-family homes—made up only 2.4% of home sales. By Q3 2024, that number had dropped to just 0.3%.
This decline shows that fewer investors are competing for homes now than in previous years, creating more opportunities for buyers like you.
Why Are Investors Pulling Back? Higher mortgage rates and rising home prices have made it less attractive for investors to buy right now. This shift means you may have more negotiating power and less competition when searching for a home.
The idea that Wall Street investors are buying up all the homes and leaving none for everyday buyers is a myth. While some investors are still in the market, they’re purchasing far fewer homes than in the past.
If you’ve been holding off on buying because of investor competition, it may be time to rethink your strategy. Contact your local Evergreen loan officer and explore your homeownership options. With the right mortgage strategy and a trusted lending partner like Evergreen Home Loans, you may have more opportunities than you think!
