Investors’ Home Buying Surge Squeezes Out Traditional Buyers
Real estate investors are increasing their share of U.S. home purchases, with nearly 27% of homes sold in the first quarter of the year going to investors, the highest in at least five years. This increase reflects a broader slowdown in the housing market, as rising prices and high borrowing costs deter traditional buyers. Investors purchased 265,000 homes during this period, a modest increase from the previous year, and are able to do so by utilizing cash or existing home equity. While mom-and-pop investors dominate the market, there are signs large institutional investors are scaling back purchases.
John Q. Hosedrinker