Let’s be real –
buying a home
right now is tough. You’re scrolling through listings - rushing to open houses - and maybe even losing out to more competitive offers. Somewhere along the way - you might’ve heard the reason it’s so hard to find a home is because big Wall Street investors are swooping in and snatching up everything in sight.
But here’s the thing: that’s mostly a myth. While investors are part of the market - according to
Redfin - they’re a relatively small part:
Here’s what that means. Five out of every six homes are being purchased by everyday homebuyers like you – not big investors.
So - before you get discouraged - let’s take a look at what’s
really going on. You might be surprised to learn that Wall Street isn’t the competition you may think it is.
Most Investors Are Small Mom-and-Pops
Most investors aren’t the mega corporations you’ve probably heard about. In fact - many are your neighbors. A recent
report from
CoreLogic shows most investors are small - mom-and-pop types who own fewer than 10 properties. They aren’t massive companies with endless resources. Picture your neighbor who has another home they’re renting out or a vacation getaway.
Only about 1% of the market is owned by large - mega investors with thousands of properties. The majority are still owned by individuals and smaller investors – not the Wall Street giants.
Investor Purchases Are Declining
Not only are most investors small - but overall investor purchases have been on the decline. As the same report from
CoreLogic says:
“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 . . .”
And what does this mean going forward?
CoreLogic goes on to point out this downward trend is expected to continue into 2025.
So - if it seems like competition with investors is pushing you out of the market - it might help to know that investor activity is actually slowing down.
Bottom Line
The idea that Wall Street is buying up all the homes is largely a myth. Most investors are small ones - and the share of homes purchased by investors is declining – so you can take this one off your worry list.
If you have
questions about the housing market - talk to a local
real estate agent. They can explain what’s really happening.
