Derry's Condo Headshot

Derry's Condo Headshot

Wednesday, December 29, 2021

Investors Affecting Single Family Home Inventory

There has been more purchasing from investors in the single family home market over the course of the last year.

I recently received a call from an agent who has a client looking to purchase more property due to the buyer's fear of inflation. He's so worried about inflation, that he wants to tie up all of his money into assets. I don't think this is the most common reasoning, but I definitely think it is contributing.

The other reason we might have growing investor share is minimum wage growth. Biden brought minimum wage up to $15/hour. With that, tenants can afford more in rent. This incentivizes investors to acquire more property before properties increase in value too much.

With more investment money in the real estate market, this will trap out more first time home buyers or those that decided to rent for a period of time. 

For more information, click the link below:

Lawler: More on Investor Purchases of Residential Homes: Pretium

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