In a tough home-sales market, investors are winning
Rising prices and shrinking inventory have made it difficult to bid successfully on a home. This is frustrating for home buyers.
Why?
During the third quarter of 2021, investors bought more than 18 percent of the homes sold in the United States. That equates to 90,000 homes and a total of $64 billion. Investors have an advantage because they come with cash. Oftentimes, investors waive inspections. Investors are buying more expensive homes than in the past. The average investor home purchase in the third quarter cost $438,770. This is about 5 percent more than the average a year earlier. Investors are profiting.
Hot spots for investor purchases
Location of home purchases by investors rose most year over year in the third quarter of 2021
| Jacksonville, FL | 171% |
| Las Vegas | 166 |
| Atlanta | 161 |
| Orlando, FL | 149 |
| Charlotte, NC | 145 |
| Phoenix | 142 |
| Miami | 129 |
| Chicago | 127 |
| Tampa, FL | 108 |
| Nashville | 106 |
| Baltimore | 105 |
| Columbus, Ohio | 85 |
| Ft Lauderdale, FL | 84 |
| Portland, OR | 83 |
| New York | 78 |
| Minneapolis | 74 |
| Denver | 72 |
| Montgomery County, PA | 64 |
| Detroit | 63 |
| Sacramento | 56 |
Sales records and deeds were obtained for this analysis. This study covered the 50 largest metropolitan areas in the United States. Because of laws prohibiting records access only 40 could be used.