Real Estate Investors Claim 20% of US Home Purchases

Individual investors and second-home buyers accounted for 20% of U.S. home-purchase transactions in September, marking the highest share in over a year. This surge comes as mortgage rates exceeding 7% deter traditional homebuyers, while rising housing inventory and strong rental demand attract investors. The National Association of Realtors reported that total for-sale inventory reached 1.6 million units in September, the highest level since November 2019.

Real-estate investors, particularly smaller operators owning three to nine properties, have been more active than large landlords. This activity is supported by a cooling market where ParclHQ data indicated that 43% of sellers were cutting prices as of October 12. In cities like Chicago, typical rents grew 4.7%, and investors are increasingly targeting multi-unit apartment buildings, while lower home values in cities like Rockford provide accessible entry points for new investors.

Zillow reported that typical national rents rose 2.7% year-over-year in September. Demand for single-family rentals increased nearly 22% during the same period, as high borrowing costs force more consumers to rent rather than buy.