By Mike Lentz | The Mike Lentz Team – Keller Williams Realty
No, large institutional investors own just 0.4% of single-family homes nationwide and are currently selling 4 homes for every 1 they buy. Most competition comes from everyday buyers, not Wall Street firms, which means more opportunity exists than many people realize.
What You Should Know About Investors in the South Jersey Housing Market
Headlines keep suggesting that big Wall Street firms are buying everything in sight. If you’re trying to purchase a home in Haddon Heights or Collingswood, that can feel discouraging. It can make it seem like the odds are stacked against you.
But when you look at the actual data, a very different picture emerges.
Most Investors Are Everyday Property Owners
When you hear the word investor, you probably picture big corporations. That misconception feeds the myth that they’re buying up all the homes. But most investors aren’t big companies at all.
They’re everyday people just like you.
They’re someone who owns a second home down the shore. They’re a neighbor in Audubon who has a rental or two. They might even be a homeowner who tried to sell, didn’t get their price, and decided to rent instead.
When all these groups get lumped together in headlines, the investor numbers sound high. That’s especially true if you assume all investors are big investors. But here’s what the numbers really show when you drill down.
Institutional Investors Own a Tiny Slice of the Market
Large institutional investors actually make up a very small share of the overall housing market. According to BatchData, the largest investors (those with 1,000+ homes) own just 0.4% of the 86 million single-family homes in the country.
And their share of the market is actually shrinking.
Data from Parcl Labs shows big investors are selling 4 homes for every 1 they’re buying right now (see visual below):
That means they’ve actually added almost 1,700 homes back into the housing supply lately.
What This Means If You’re Buying in Camden County
The story is clear. Instead of aggressively buying homes, most of these companies are stepping back. That means less competition from them than you might expect.
If you thought they were dominating the market, let that give you some peace of mind.
Most of the competition you’ll face is from other everyday buyers. People just like you. And with most large investors stepping back, there may be more opportunity than you think. Understanding current market conditions can help you position your offer strategically.
Bottom Line
It’s easy to assume big investors are taking over the housing market. But the data tells a different story. If you want an expert’s opinion on what investor activity looks like in our area, let’s talk.
Because odds are, it’s not as big a factor as you may think.
