Real Estate Investors Make a Bold Play: One in Six Homes Now Their Prize
In a dynamic real estate landscape marked by skyrocketing home prices and shifting market trends, investors are asserting their dominance. Recent data reveals that real estate investors have increased their share of home purchases, acquiring one in every six single-family homes. This surge reflects a staggering $43 billion spent in the second quarter alone—up nearly 14% from the previous year.
The Investor’s Sweet Spot: Single-Family Homes
Single-family homes are the top target for these investors, constituting 69% of their acquisitions. While the high-end market attracts attention, investors are also capitalizing on more affordable properties, with one in every four low-priced homes falling into their hands. Their strategy? Many are leveraging these homes to benefit from a robust rental market.
CoreLogic’s latest index highlights a 3.2% year-over-year increase in single-family rents as of May, marking the highest growth rate since April 2022. This resurgence in rent growth signals that the rental market is regaining its pre-pandemic vigor.