Investors on Record Buying Spree

Published by REALTOR Magazine | November 23, 2021

Investors purchased a record $64 billion of homes in the third quarter.

Taking notice of the increased appetite for U.S. real estate, investors are building up their portfolios of properties looking to cash in on the higher housing and rental prices. Investors purchased a record $64 billion of homes in the third quarter.

Single-family homes comprised nearly three-quarters of investor purchases in the quarter, an all-time high, Redfin reports.

In October alone, investors made up 17% of buyers, up from 14% a year earlier, the National Association of REALTORS® reported in its latest existing-home sales report. All-cash buyers, the category that investors tend to land in, accounted for 24% of home sale purchases last month.

Overall, investors purchased a record high of 90,215 homes in the third quarter, up from 80.2% a year earlier. That is the second-largest year-over-year gain on record, Redfin reports.

“Increasing home prices fueled by an intense housing shortage have created opportunities for investors to reap big profits. Those same factors have pushed more Americans to rent, which also creates opportunities for investors because investors typically turn the homes they purchase into rentals and can now charge higher rents.”

–Sheharyar Bokhari, Redfin’s Senior Economist

Average monthly rents climbed 10.7% annually in September. Median home prices increased 13.1% in October year over year to $353,900, according to NAR.

Atlanta had the highest share of homes sold in the third quarter that were purchased by investors, the highest share of the 40 U.S. metro areas that Redfin tracked. Rounding out the top five are Phoenix (31.7%); Charlotte, N.C. (31.5%); Jacksonville, Fla. (28.3%); and Miami (28.1%).

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