As the Market Begins to Stabilize, Investor Home Purchases Are Back Up
This is a change from 2023, when the share of investor home purchases dropped by 50%
Aug. 19, 2024
Image: Donald Joski / stock.adobe.com
As investors look to take advantage of heightened renter demand, the share of investor home purchases increased in Q2 2024.
Investor activity in the U.S. housing market is stabilizing after several years of fluctuations. In Q2 2024, investor purchases of homes rose by 3.4% year-over-year, marking the largest increase since Q2 2022. According to real estate data tracker Redfin, investors bought $43 billion worth of homes during this period, marking the biggest gain in two years. This is a shift from the last several years, when investor activity saw larger swings. During the 2021 pandemic housing boom, for instance, investor activity more than doubled before dropping nearly 50% in 2023 due to declining rents and home values.
“One reason real estate investors are coming out of hibernation is to take advantage of robust demand from renters,” said Redfin Senior Economist Sheharyar Bokhari. “Elevated home prices and mortgage rates have pushed homeownership out of reach for a lot of Americans, which is fueling demand for rentals. Investors, many of whom can afford to pay in cash to avoid the sting of high mortgage rates, are cashing in on that demand.”
