If you’re in the market for a home, you might feel like you’re constantly competing against deep-pocketed investors who are snatching up properties before regular buyers even get a chance. The media often portrays Wall Street giants as taking over the housing market, making it nearly impossible for the average person to buy a home.
But is that actually true? Not really. The reality is that investor activity is declining, and the majority of investors are small-scale, not massive corporations. Let’s break down the facts.
Most Investors Are Everyday People, Not Wall Street Giants
One of the biggest misconceptions about the housing market is that large institutional investors are the ones dominating home purchases. In reality, mom-and-pop investors make up the majority of real estate investors. According to The Mortgage Reports:
“On average, small investors account for around 18% of the market, while mega investors represent only about 1%.”
That means most investors aren’t hedge funds or corporations, but everyday people who own a rental property or a vacation home. They’re your neighbors, local landlords, or individuals who’ve decided to invest in real estate as a way to build wealth over time. The idea that Wall Street is buying up entire neighborhoods just isn’t backed by the data.
Investor Purchases Are Actually Declining
Even if you have heard about big investors in the past, here’s the kicker: they’re pulling back. The peak of institutional investor activity happened in Q2 2022, when they accounted for just 2.4% of home purchases. But since then, their buying power has dropped significantly. By Q3 2024, that number fell to just 0.3%—a massive decline.
So why are investors backing off? Higher mortgage rates and rising home prices have made it less attractive for them to buy right now. What does this mean for you? Less competition from big players and potentially more opportunities to find the right home.
You Still Have a Great Chance to Buy a Home
The belief that investors are making it impossible for regular buyers to compete is simply a myth. While some investors are still active, they’re not nearly as aggressive as they were a few years ago. If you’ve been holding off on buying a home because you think the market is overrun by investors, you might be missing out on a great opportunity.
Instead of assuming the worst, now is the perfect time to work with a local real estate agent who understands your market and can help you find the right home at the right price.
It’s Time to Make Your Move
Big investors aren’t buying up all the homes—in fact, they’re buying fewer than they have in years. If you’re serious about purchasing a home, now could be your moment. Call or text us at 855-935-MORE, and let’s talk about your home-buying options today!
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