https://www.washingtontimes.com/news/2024/mar/15/in-shift-44-of-all-single-family-home-purchases-we/In a shift, 44% of all single-family home purchases were by private investors in 2023By the Washington Times staff
March 15, 2024
Note: when reading at The Washington Times, it's best to use your browser's "reader mode" OR to disable javascript in your browser using a free add-on or extensionExcerpts:In a striking shift in the residential property market, private equity firms have been carving out an increasingly substantial share of single-family home purchases, raising concern about the potential consequences for housing affordability and market competitiveness.
Recent data reveals that in the third quarter of 2023, the involvement of these financial entities in buying up single-family homes reached 44%, far outpacing independent buyers, Medium reports. The surge in activity marks a significant departure from traditional real estate dynamics and ushers in a new era of institutional investment.
The practice has not only raised eyebrows but also fears, as the growing footprint of private equity raises critical questions about its role in raising real estate prices and potentially sidelining individual homebuyers.
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Historically, investment firms and financial institutions had their sights set on multifamily properties such as apartments, leaving single-family homes largely to individual buyers. The aftermath of the 2009 recession, however, witnessed a turning tide, as low property prices and correspondingly low interest rates created a ripe environment for these investors to expand their portfolios into what was once considered nontraditional territory.
Over the subsequent decade, the percentage of single-family homes being bought by investors grew incrementally, from 10% to 15% annually. This data, compiled by CoreLogic and reported by Pew Trust, underscores the significant shift taking place in private homeownership.
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