In the first quarter of the year, investors purchased nearly 27% of all U.S. homes, marking a five-year high. The surge in investor purchases is attributed to a housing market slowdown, with traditional buyers facing affordability issues and high mortgage rates. This has resulted in increased home inventory and longer selling times. Investors, leveraging cash advantages, are stepping in to maintain transaction volumes, evidenced by their acquiring 265,000 homes in the first quarter, a 1.2% rise from the previous year. Between 2020 and 2023, investor purchases averaged 18.5% of total home sales.
Nearly 27% of all homes sold in the first three months of the year were bought by investors, the highest share in at least five years. Rising prices and stubbornly high borrowing costs have frozen out many would-be homebuyers, leading to the increased market share of investors.
Between 2020 and 2023, the share of homes bought by investors averaged 18.5%. In the January-March quarter alone, investors bought 265,000 homes, reflecting a modest annual increase of 1.2%.
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