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If you’ve been in the market to buy a home, you’ve probably heard rumors that big investors are snapping up all the properties, making it harder for everyday buyers to compete. But how much of this is true? Are investors really dominating the housing market? Let’s break it down.

Investors Are Active, But Not Controlling the Market

It’s true that real estate investors—ranging from small-scale landlords to large institutional buyers—have been purchasing homes in recent years. However, the idea that they’re buying all the available properties is an exaggeration. According to recent housing data, investor purchases typically make up less than 20% of the total market, leaving the vast majority of homes available for individual buyers.

Who Are These Investors?

Not all investors are large corporations. In fact, many are small, mom-and-pop landlords looking to supplement their income by purchasing rental properties. Institutional investors—those large firms buying homes in bulk—account for only a small percentage of total sales in most markets.

Investors vs. Traditional Buyers

While investors may have a competitive edge—often making cash offers and waiving contingencies—traditional buyers still have advantages. First-time buyers, move-up buyers, and downsizing homeowners make up the bulk of the market. Plus, many sellers prefer to sell to owner-occupants, especially if they receive comparable offers.

How This Affects You as a Buyer

If you’re worried about competing with investors, here are a few strategies to stay competitive:

  • Get pre-approved for a mortgage to show sellers you’re a serious buyer.
  • Make a strong offer—sometimes a personal letter or flexibility on closing dates can make a difference.
  • Consider homes that need light renovations—investors often target turnkey properties, so homes needing minor updates might have less competition.

Final Thoughts

While investors are certainly part of today’s housing market, they aren’t the primary force driving competition. The vast majority of homes are still going to individual buyers looking for a place to live. If you’re ready to navigate today’s market, let’s connect and create a strategy that works for you! 🏡🔑

sheamerritt

Providing guidance and assisting motivated buyers, sellers, tenants, landlords, and investors in marketing and purchasing property for the right price under the best terms. Determining clients' needs and financial ability to purchase the best home for them. Call me today and let me help you find a home that can change your life!

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