Wall Street vs. Main Street: 10 Cities Where First-Time Buyers Are Battling Investors for the Best Homes
In today’s hot housing market, homebuyers aren’t just attempting to outbid that friendly couple they spotted at the open house admiring the kitchen cabinetry. No, they’re also gearing up to compete with substantially bigger fish: an influx of deep-pocketed real estate investors who are vying for the same modest, single-family homes in the suburbs—and sometimes coming to the party with all-cash offers.
As competitions go, this one isn’t exactly a fair fight.
Real estate investors have been buying up homes at a feverish pace during the COVID-19 pandemic, hoping to cash in on low mortgage rates and skyrocketing rents. They’re flipping single-family homes, townhouses, and condos for a profit or turning them into rentals. The share of investors in the market hit the highest level since at least 2015, according to an analysis of deed records by Realtor.com®.
Furthermore, they’re affecting some markets far more than others. We decided to look at where investors are scooping up the most homes in the U.S. right now.