96
The Big Finish
Wrap your head
around the market's
leading indicators.
INVESTOR MARKET SHARE
HITS RECORD HIGH
Source: Redfin, "Real Estate Investors Are Buying a Record Share of U.S. Homes"
96
According to a new report from Redfin,
real estate investors bought a record 18.4%
of the homes that were sold in the U.S.
during Q4 of 2021—worth a total of nearly
$50 billion, up from 12.6% a year earlier,
and a revised rate of 17.4% in Q3 of 2021.
Although investor market share hit a
record in Q4, the number of homes bought
by investors declined 9.1% from the Q3
peak; however, still up significantly from
pre-pandemic levels. Investors bought
80,293 homes in Q4, up 43.9% from a
year earlier. e housing-supply shortage
constricted home sales for all homebuyers,
including investors. Some 75.3% of
investor home purchases were paid for with
all cash in Q4.
"While record-high home prices are
problematic for individual homebuyers,
they're one reason why investor demand
is stronger than ever," Redfin Economist
Sheharyar Bokhari said. "Investors
are chasing rising prices because
rental payments are also skyrocketing,
incentivizing investors who plan to rent
out the homes they buy. e supply
shortage is also an advantage for landlords,
as many people who can't find a home
to buy are forced to rent instead. Plus,
investors who 'flip' homes see potential to
turn a big profit as home prices soar."
