This new analysis offers insight and uses proprietary data from New Western and surveys from it network of 150,000 buyers and found that overall buyers remained confident in 2022 and into 2023 even though housing inventory remains low and interest rates continue to rise.
All-in-all, the report found that 73% of investors surveyed said their respective businesses grew between the years of 2021 and 2022, and 70% said they plan to continue investing in 2023.
Additionally, 63% of investors who are interested in purchasing for the first time in 2023 said that interest rates are not a barrier for them as 59% plan to use cash reserves or private money.
Further, the survey revealed a greater market share of youth moving into residential real estate investment as 7% of investors on the platform are between 18-29-year-old as are 15% of investors looking to purchase for the first time in 2023.
"Even though rising interest rates present a challenge, the reality is we have a deficit of five million families that need homes," said Kurt Carlton, President and Co-Founder of New Western. "So the demand is there, but inventory nationwide is still very low. We know there will not be enough new builds to close the gap, while the exit of iBuyers from the investor market will open up a surplus of options for individual investors to scoop up deals and provide inventory by rehabbing existing homes. Traditional market headlines will focus on a macro environment that won't appear favorable, but there's more to the story in 2023. Smaller investors will leverage their local knowhow and nimble operations to find opportunities in their neighborhoods, and will continue to grow their fix-n-flip or rent businesses."