Investor Home Purchases are Way Down

Investors purchased 50% fewer homes in Q4 2023 compared to two years earlier, according to the latest [Redfin data](https://link.mail.beehiiv.com/ss/c/bqhIlGL7T9NglJeTcgo-tiZ3q8Ozl-pHlPPkxo0T3JFzu1lReid1tUg6EWs7pvUxsb_RhECfFjDpoodsPzur-Ip1BWrPxlgZwiWXxup-UKLYc7qPZ0UXsB0z4J9Rw2DFvXcYpichfpXIa4SWOVplKhifd5W7qkgmnXx0Qqp5oD8RXG8nN2IGcWrKRQMKlHkbNSDyucJGeir1Vo5fhAQY1Dw6uV3llIIrXKPE5Vt4E6LuMmxzhhMlrmbdUf2ei_-D/43w/JeZfI-_HQ1q5csPctHkxMQ/h16/9m3yzCuqz6Tbm_BrnVRWT_VYTu0UeAvdxbvnOVJ_BgY). Investors acquired 46,419 homes in Q4, down from 51,881 in Q4 2022 and 92,802 in Q4 2021. Here are the top three metros where investors bought the highest and lowest share of homes: Highest (%) 1. Miami, FL — 31.5% 2. Jacksonville, FL — 25.6% 3. Anaheim, CA — 25.5% Lowest (%) 1. Providence, RI — 9.9% 2. Warren, MI — 10.1% 3. Montgomery, PA — 10.2% #### **Our take** Many people still think giant institutional investors are gobbling up all the homes. The data shows this is no longer true. Investors of every kind – large or small – only made up 18% of all housing transactions in Q4 2023, and the vast majority of investor purchases are made by small landlords who own fewer than 10 properties. In fact, institutional investors – operators owning at least 1,000 homes — accounted for just [0.4%](https://link.mail.beehiiv.com/ss/c/bqhIlGL7T9NglJeTcgo-tt7DO4jYH6CPT2_4Q8b_RJNJ2iIQ3J6LdWxR_RKrjo54dqAdPOOjoCNKTB5J4G_Em21KvGCfGawvx0OQgW1teGMglxh_sFZ-jQp0eMcrdsgkGpyTOb2I-XpRMC9NljIu8qE_Zm3PEppkDaUwb7RNWwmStC3F7BiJxsJINkxtISVuhuyY0C8udZhICpeZpdnDff1cMRR6Vp_q9c3SAsuBR4LMqqqrhrdpBCyKlzcrIFlQ7iIqJeY0MuPrcCqRnssSercEoJb8FIjtzDA9nockxrg/43w/JeZfI-_HQ1q5csPctHkxMQ/h17/8qkNfAarRBS6yHBCSgBIvO-kPLSOGfUL3eFwBWq4tpA) of home purchases. This is why this kind of data is so important. It helps us get a clearer picture of how the market is really operating. James and David, The Blueprint