The Difference of a Decade: Rising Purchases amid swings in market share
Smaller investors are responsible for the bulk of investor homebuying activity, and
the rate appears to be increasing. Between 2011 and 2020, these so-called mom
and pop investors who have kept 3-to-10 homes increased their share of
homebuying more than large- and medium-sized investors, growing from 54% to
56%. This is due to a recent pickup, between 2018 and 2020 this share grew from
53% to 56%.
Large investors, those who retained more than 100 homes, remain steady at
around 12% since 2018. It seems small investors mostly took their market share
from medium-sized investors those who kept between 11 and 100 homes -
whose share fell from 34% to 32% of the market between 2018 and 2020.
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50%
40%
30%
20%
20%
19%
18%
17%
16%
15%
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13%
12%
2012
U.S Investor Homebuying Rates by Price Tiers: 2011-2020
2014
2016
High Priced Homes
Mid Priced Homes
Low Priced Homes
2018
2020
U.S Investor Homebuying Rates by Investor Size: 2011-2020
10%-
2012
2014
2016
2018
2020
Large Sized Investor
Mid Sized Investor
Small Sized investor
Investor purchase rates were much higher among relatively low-priced homes. In
2020, 18.8% of purchases in the bottom one-third of prices for their respective
metropolitan area were made by investors. That rate was well above those for the
middle- and top-third of homes, with rates around 12%. Investor activity fell by 1-
to-2 percentage points in all three tiers since 2018, consistent with the national
trend.
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