The share of private investors in U.S. homes remains high in 2023.
According to the national information provider CoreLogic, the share of homeowners in the U.S. among investors has remained stable over the past two years as of the summer of 2023. In March 2023, investors accounted for 27% of all single-family home purchases; by June, this number had barely changed, standing at 26%. CoreLogic reports that there was a surge in investor activity in 2021. Since then, they have maintained a market share that is, on average, 8 percentage points higher than in 2020.
26 October
The likely reason for the slight decrease in home purchases by investors in recent months is seasonality, as owner-occupants become more active in the summer. The share of investors measures investor purchases compared to owner-occupant purchases, and while the data shows a clear difference before the pandemic compared to today, analyzing the number of transactions provides a more complete picture.
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In April, May, and June 2023, real estate investors made 85,000, 98,000, and 82,000 purchases, respectively. For the second quarter, there was an annual decrease of 90,000 purchases. However, compared to the same months in 2019, investor activity in real estate increased by more than 43,000.
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Compared to non-investors, who made 392,000 fewer purchases in Q2 2023 than in Q2 2019, it becomes clear how different the current market is from what it was in previous years. As the total number of purchases by investors decreases, the share of small investors is increasing.
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