Are you looking to buy a home but feel overwhelmed by wealthy Wall Street investors who seem to be scooping up every property? Many folks think that these big investors are the reason prices are soaring and homes are hard to come by, making it tough for regular buyers like you to keep up.

Investor purchases are actually decreasing, and the major players in the market aren’t as involved as many believe. Let’s take a closer look at the facts and dispel this myth.

Most Investors Are Small-Scale, Not Big Players

Many people think that huge institutional investors are taking over the market, but that's actually not true. According to The Mortgage Reports, the situation is quite different.

““On average, small investors account for around 18% of the market, while mega investors represent only about 1%.”
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— The Mortgage Reports

Most real estate investors are everyday people, often just a few property owners, rather than big corporations scooping up whole neighborhoods. They're like your neighbors who might rent out a second home or have a vacation spot they’re not using all the time.

Investor Home Purchases Decline

What about those big investors you often hear about in the news? Recently, it seems that those institutional investors making headlines have scaled back their activity and aren’t purchasing as many homes as before.

John Burns Research and Consulting (JBREC) reports that back in Q2 2022, institutional investors—those owning 1,000 or more single-family homes—accounted for only 2.4% of total home sales. That figure has dropped significantly since then. By Q3 2024, their share had plummeted to just 0.3%.

That's a big change, and it means there are a lot fewer investors in the market now compared to just a few years ago.

Investors are definitely feeling hesitant to buy in today's market, and it mainly comes down to higher mortgage rates and home prices. These factors have made the investment landscape less appealing for them.

The belief that Wall Street investors are scooping up all the homes and making it tough for you to compete is a misconception. Sure, some investors are still participating in the market, but they’re not as active as they used to be in previous years.

Bottom Line

Big institutional investors aren’t snapping up all the homes like you might think – in fact, they’re actually purchasing less than before. Let’s connect and discuss what’s going on in our local market. There might be more opportunities available than you realize.

How does it feel knowing that investors are purchasing fewer homes? Does that shift your perspective on your opportunities in the current market?