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Scroll through social media and you’ll see plenty of blame being thrown around about why homes are so expensive. According to a recent national survey, many people point the finger at big investors.
However, the numbers tell a different story. Nearly half of Americans surveyed (48%) believe investors are the main reason housing costs so much — but the data doesn’t back that up.
The Real Story About Investors
While investors do play a role in the housing market — especially in certain areas — they aren’t buying up all the available homes as many online posts suggest.
Realtor.com found that large investors (those who own more than 50 properties) made up only 2.8% of all home purchases last year. That means about 97% of homes were bought and sold by everyday buyers and sellers, not big corporations.
As Danielle Hale, Chief Economist at Realtor.com, puts it:
“Investors do own significant shares of the housing stock in some neighborhoods, but nationwide, the share of investor-owned housing is not a major concern.”
What’s Actually Driving Home Prices
If investors aren’t the main reason, what is? The real issue is simple — there aren’t enough homes.
Robert Dietz, Chief Economist at the National Association of Home Builders (NAHB), explains:
“It’s been popular among some to blame investors, but the economics don’t support that. The main factor behind rising housing costs is the shortage itself — there’s a mismatch between the number of households and the available housing supply.”
In other words, the lack of inventory — not investor activity — is what’s keeping prices high across the country.
Bottom Line
It’s easy to assume investors are behind today’s housing challenges, but the truth is, the market just needs more homes. The good news? More listings are finally starting to appear, which could make buying feel a bit more achievable again.
If you’re thinking about buying or selling, connect with a local real estate agent to get the latest insights on what’s happening in your area.
