Are Big Investors Really Buying Up All the Homes? Here’s the Truth

In recent years, headlines have raised concerns about big investors, such as private equity firms and corporations like Blackrock, buying up large portions of the housing market. Many fear that these institutional investors are outbidding everyday buyers, driving up home prices, and cornering the market. But what’s the reality? The latest data from Redfin provides clarity—and it might surprise you.

The Numbers Don’t Lie

In Q2 of 2024, investors purchased just 16.8% of U.S. homes sold. That’s roughly 1 in 6 homes—a significant decline from the pandemic-era high of 20.8% in 2021. This means that 5 out of 6 homes are still being bought by everyday buyers—families, individuals, and first-time homeowners—not institutional investors.

The notion that big investors dominate the housing market doesn’t hold up when we look at the data. While it’s true that investors play a role, the majority of homes remain in the hands of everyday buyers.

Investor Activity Is Slowing

The trend of declining investor activity has been underway for some time. Factors such as higher borrowing costs, fluctuating housing demand, and increased scrutiny have curbed investor appetite for residential real estate. This is good news for everyday buyers, who are facing less competition from cash-rich corporations.

It’s also worth noting that not all investors are large firms or private equity giants. Many are small-scale investors—mom-and-pop landlords—who buy properties as a way to build wealth or provide rental housing.

What This Means for Homebuyers

For prospective homebuyers worried about competing with big investors, the data offers reassurance. Despite the growing attention on investor activity, the reality is that the vast majority of homes are still purchased by people like you.

With investor activity declining, it’s a great time to explore your options in the housing market. If you’ve been holding back because of fears about competition from big investors, now might be the time to reconsider.

Final Thoughts

While big investors like Blackrock often dominate the headlines, the truth is more nuanced. Institutional investors make up a smaller portion of the market than many believe, and their activity has been on the decline. Everyday buyers still represent the majority of home purchases in the U.S., and the opportunities for homeownership remain strong.

If you’re ready to explore the housing market or have questions about buying or selling, I’d be happy to help. Let’s connect and discuss how you can achieve your real estate goals.

Statistic Source: Redfin