http://pkrealtor.com/blog/categoryname_investors/sort_entrydatetime-desc/  It’s hard to scroll online lately without seeing some version of this claim:“Big investors are buying up all the homes.”And honestly, if you’re a homebuyer who’s lost out on a few offers, that idea probably sounds believable. When homes are expensive and competition is tight, it’s easy to assume giant companies are scooping everything up behind the scenes.But here’s the thing: what people assume is happening and what the data actually shows aren’t always the same.Let’s look at what’s really happening with large institutional investors in today’s housing market – because the numbers tell a much different story than the headlines.The Number Most People Won’t See OnlineLet’s start with the most important stat. According to John Burns Research & Consulting (JBREC), large institutional investors – those that own 100 or more homes – made up just 1.2% of all home purchases in Q3 of 2025 (see graph below):That’s it. Out of every 100 homes sold, only about 1 went to a large institutional investor.And here’s an important point that often gets missed: that level of investor activity is very much in line with historical norms. It’s not unusually high, and it’s actually well below the recent peak of 3.1% back in 2022 – which itself was still a small share of the overall market.So, while it can feel like big investors are everywhere, nationally, they’re a very small part of overall home sales.Why Investor Activity Gets So Much AttentionThere are two main reasons this topic gets so much attention:Investor activity isn’t spread evenly.Investors are more active in certain markets, which can make competition feel intense for homebuyers in those areas. As Lance Lambert, Co-Founder of ResiClub, explains:“On a national level, “large investors”—those owning at least 100 single-family homes—only own around 1% of total single-family housing stock. That said, in a handful of regional housing markets, institutional and large single-family landlords have a much larger presence.”Investor is a broad term.Part of what makes the share of purchases bought by investors sound so big is because many headlines lump large Wall Street institutions together with small, local investors (like your neighbor who owns one or two rental homes). But those are very different buyers.In reality, most investors are small, local owners, not massive corporations. And when all investors get grouped together in the headlines as a single stat, it inflates the number and makes it seem like big institutions are dominating the market (even though they’re not).Yes, big investors exist. Yes, they buy homes. But nationally, they’re responsible for a very small share of total purchases – far smaller than most people assume.The bigger challenges around affordability have much more to do with supply, demand, and years of underbuilding than with large institutions competing against everyday buyers.That’s why it’s so important to separate noise from reality, especially if you’re trying to decide if now is the right time to move.Bottom LineIf you want to talk through what investor activity actually looks like in our local market, and how it impacts your options (or doesn’t), let’s connect.Sometimes a little context makes all the difference. http://pkrealtor.com/blog/1068/are-big-investors-really-buying-up-all-the-homes?-here’s-the-truth/ Thu, 15 Jan 2026 03:13:56 -0500  If it feels like you’re seeing new construction signs pop up everywhere, you’re not wrong. Builders have been busy. And it’s left some people wondering: Are we overbuilding like we did right before the 2008 housing crash?No matter what you may hear in the news, there’s no reason for alarm. In reality, data shows builders aren’t racing ahead, they’re actually starting to tap the brakes.Builders Are Pulling Back, Not Piling OnPermits (applications to start building new homes) are one of the best early indicators for what's next for home construction. And right now, building permits are trending down, not up. Here’s why that’s so important.In the years before the housing crash of 2008, builders really ramped up their production of single-family homes (the red arrow in the graph below). And unfortunately, they built far more homes than the market actually needed. That oversupply led to falling home prices. That’s what so many people remember, and what they worry will happen again.But while construction has been picking back up since roughly 2012, we’re not headed for a repeat of the same mistakes. The latest data available shows builders are actually starting construction on fewer homes right now (the green arrow in the graph below):New data from the National Association of Home Builders (NAHB) confirms that trend. It shows that single-family building permits have fallen for eight straight months.The Slowdown Isn’t Random, It’s IntentionalBasically, builders are watching and reacting to today’s economic conditions and buyer demand in real time. And they’re pumping the brakes on their pipelines to avoid getting caught with too much unsold inventory. As Ali Wolf, Chief Economist at Zonda, says:“. . . builders are still working through their backlog of inventory but are more cautious with new starts.”That’s a big contrast to what happened before the housing crash, when overconfidence led to record-breaking levels of new home construction – even as demand was dropping. Today’s builders aren’t overconfident. They’re listening to the market and adjusting before things get out of balance.The Regional Picture Tells the Same StoryAnd while inventory is going to vary a lot based on where you live, if you zoom out and look at regional data, the pattern holds almost everywhere (see graph below):NAHB reports single-family permits are down in nearly every part of the country, with just one region showing a slight uptick. And even there, the growth is so small, it’s practically flat.Why This Isn’t 2008 All Over AgainIn the lead up to the crash, builders kept building long after demand had disappeared. This time, they’re slowing down early, and that’s a good thing.The market actually needs more homes after years of underbuilding. But builders are making sure they don’t have to overcorrect. They're being intentional about how many homes they’re building right now.So yes, you’re seeing more new homes for sale today, but that doesn’t mean we’re oversupplied nationally. It means buyers finally have more options, and builders are pacing themselves to keep things in check. They’re not going to flood the market. And that’s a really good thing for housing overall.Bottom LineSeeing more new homes for sale doesn’t mean builders are overdoing it. Since building permits have been declining for eight straight months, it’s clear this isn’t an out-of-control boom. It’s a measured recovery.If you want to know more about what builders are doing in our area, let’s connect. http://pkrealtor.com/blog/1030/are-builders-overbuilding-again?-let’s-look-at-the-facts/ Wed, 12 Nov 2025 05:55:36 -0500  Scroll through your feed and you’ll see plenty of finger-pointing about why homes cost so much. And according to a national survey, a lot of people believe big investors are to blame.Even though data shows that’s not true, nearly half of Americans surveyed (48%) think investors are the top reason housing feels so expensive (see graph below):But that theory doesn’t actually hold up once you look at the data.The Truth About InvestorsInvestors do play a role in the housing market, especially in certain areas. But they’re not buying up all the homes like so many people on social media say.Nationwide, Realtor.com found only 2.8% of all home purchases last year were made by big investors (who own more than 50 properties). That means roughly 97% of homes were bought and sold by regular people, not corporate giants. Danielle Hale, Chief Economist at Realtor.com, explains:“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.”So, if it’s not investors, why are home prices so high?What’s Really Behind Today’s Home PricesThe real story behind rising prices has less to do with who’s buying and more to do with what’s missing: enough homes. Robert Dietz, Chief Economist at the National Association of Home Builders (NAHB), says:"It's been popular among some to blame investors, but with housing, the economics of that don't make a lot of sense. The fundamental driver of housing costs is the shortage itself—it's driven by the fact that there's a mismatch between the number of households and the actual size of the housing stock."There simply haven’t been enough homes for sale to meet buyer demand. And that shortage, not investor activity, is what’s pushed prices higher just about everywhere.Bottom LineIt’s easy to believe investors caused today’s housing challenges. But the truth is, the market just needs more homes, and that’s finally starting to happen.As more options hit the market, buying may feel a little more realistic again.Let’s connect and talk about what’s happening in our local market. http://pkrealtor.com/blog/1019/the-reason-homes-feel-like-they-cost-so-much-it’s-not-what-you-think/ Thu, 23 Oct 2025 09:13:39 -0500  Remember the chatter in the headlines about all the homes big institutional investors were buying? If you were thinking about buying a home yourself, you may have wondered how you’d ever be able to compete with that. Here’s the thing. That’s not the challenge so many people think it is – especially right now.Let’s break down what’s really going on and why the recent shift in the approach investors are taking could tip the scales in your favor.Large Investors Are Pulling BackThe truth is institutional investors never represented as big a share of the housing market as people think. And now, they’re backing off even more.Today, big real estate investors aren’t buying as many homes. In fact, they’re actually selling more than they’re buying.According to data from Parcl Labs, 6 out of 8 of the largest institutional single-family rental investment companies in America sold more homes than they bought in the second quarter of 2025 (see graph below):And here’s the stat that really puts it in perspective. According to Dominion Financial, for every home being bought by big investors, about 1.75 are being sold.What’s Causing Big Investors To Change Course?The reason institutional investors aren’t buying as many homes now compared to recent years is actually pretty simple. It’s because home values aren’t rising as fast as they were a few years ago, but the costs associated with rental maintenance are.Since most institutional investors buy homes to rent them out, those higher costs eat into their margins. Remember, to investors, homebuying is a business.But you’re not buying a home just for this year or next. You’re buying a place to build a life, and that’s a long-term play.Historically, home values tend to rise over time. So, while investors may be sidelined by what’s happening right now, you’re in a different position entirely. You have the chance to buy while competition is lower and benefit from potential long-term price appreciation – something most investors are choosing not to wait for as they focus on shorter-term returns.What Does All This Mean for You?According to a recent survey, about 55% of real estate investors have no plans to grow their rental portfolios now or in the near future. With big investors stepping back, that means less competition from deep-pocketed buyers. And since they’re adding to today’s for-sale inventory, it also creates more options for you.Bottom LineIf you’ve been holding off on buying, now might be the time to take another look. Let’s connect so you can get expert guidance on what’s available and what might be a good fit for you.What kind of home would you be excited to make yours this year? http://pkrealtor.com/blog/956/why-big-investors-aren’t-a-challenge-for-today’s-homebuyer/ Wed, 02 Jul 2025 09:40:34 -0500  Are you trying to buy a home but you feel like you’re up against deep-pocketed Wall Street investors snatching up everything in sight? Many people believe mega investors are driving up prices and buying up all the homes for sale, and that’s making it hard for regular buyers like you to compete.But here’s the truth. Investor purchases are actually on the decline, and the big players aren’t nearly as active as you might think. Let’s dive into the facts and put this myth to rest.Most Investors Are Small, Not Mega InvestorsA common misconception is that massive institutional investors are dominating the market. In reality, that’s not the case. The Mortgage Reports explains:“On average, small investors account for around 18% of the market, while mega investors represent only about 1%.”Most real estate investors are mom-and-pop investors who own just a few properties — not large corporations buying up entire neighborhoods. They’re people like your neighbors who have another home they’re renting out or a vacation getaway.Investor Home Purchases Are DroppingBut what about the big investors you hear about in the news? Lately, those institutional investors – the ones that make headlines – have pulled back and aren’t buying as many homes.According to John Burns Research and Consulting (JBREC), at their all-time peak in Q2 2022, institutional investors (those owning 1,000+ single-family homes) only made up 2.4% of home sales. And that number has only come down since then. By Q3 2024, that number had fallen to just 0.3% (see graph below):That’s a major shift, and it means far fewer investors are competing in the market now than just a few years ago.Investors are clearly more reluctant to buy in today’s market, but why? The answer is largely because higher mortgage rates and home prices have made it less attractive for them.The idea that Wall Street investors are buying up all the homes and making it impossible for you to compete is a myth. While some investors are still in the market, they’re not nearly as active as they were in past years.Bottom LineBig institutional investors aren’t buying up all the homes – if anything they’re buying less than they have been. Let’s connect and talk about what’s happening in our local market. There could be more opportunities than you think.How does knowing investors are buying fewer homes change the way you see your chances in today’s market? http://pkrealtor.com/blog/863/are-investors-actually-buying-up-all-the-homes?/ Tue, 25 Feb 2025 10:11:01 -0500