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Share of U.S. Homes Sold to Investors Held Steady This Summer

According to a new intelligence report authored by CoreLogic’s Professional Economist Thomas Malone, U.S. home investor shares remained during the early summer of 2023. 

According to Malone, investor activity surged in 2021 and investors have captured a market share averaging 8 percentage points higher than in 2020. However, investor activity has declined slightly since early 2023, but there is still no sign that the share of investor purchases will fall back to pre-pandemic levels. 

Malone further stated that the recent small drop in activity can be attributed to seasonal cycles as owner-occupied buyers become more active during the summer months. 

In terms of homes purchased by investors and non-investors alike, in April, May and June of 2023, home investors made 85,000, 98,000 and 82,000 purchases, respectively. Over the course of the second quarter, this was an annual decline of 90,000 purchases. However, when compared with the same months in 2019, the increase in home investor activity rose by more than 43,000. When comparing that number with non-investors, who made 392,000 fewer purchases in Q2 2023 than in Q2 2019, it becomes clear how different the current market than it was in the previous few years. 

Further, as the total number of investor purchases declines, smaller investors are picking up more inventor. “Mega” and “large” investors both held market shares between 8-10%. In the case of mega-investors, this is a drastic decline from the high of 17% of all investor purchases recorded in June 2022. Medium investors (those that own 10 to 99 properties) saw a modest decrease in activity, from 37% to 35%. Typical housing market investors are becoming more and more likely to operate smaller scale (owning three to nine properties). In June, this group accounted for 47% of investor purchases, the highest level since 2011, according to CoreLogic data. 

In the second quarter, large- and mega-investors made about 8,000 purchases per month, numbers that are consistent with those recorded before the home investor surge began in 2021. On the other hand, small-investors made 38,000, 46,000 and 38,000 purchases in April, May and June, respectively. Though these are big drops from 2021 and 2022, they are still above 2019 and 2020 levels. In those years, the April, May, and June numbers were respectively 30,000, 34,000 and 31,000 (2019); and 22,000, 23,000 and 32,000 (2020). 

Click here to view the report in its entirety. 

About Author: Kyle G. Horst

Kyle G. Horst is a reporter for DS News and MReport. A graduate of the University of Texas at Tyler, he has worked for a number of daily, weekly, and monthly publications in South Dakota and Texas. With more than 10 years of experience in community journalism, he has won a number of state, national, and international awards for his writing and photography including best newspaper design by the Associated Press Managing Editors Group and the international iPhone photographer of the year by the iPhone Photography Awards. He most recently worked as editor of Community Impact Newspaper covering a number of Dallas-Ft. Worth communities on a hyperlocal level. Contact Kyle G. at [email protected].
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