The share of institutional investors picking up homes around the country hit a record high in the fourth quarter of 2021, with nearly one in five houses being scooped up by large owners, according to data from Redfin.
Institutional investors bought 18.4 percent of all homes sold in the fourth quarter, an increase from the 12.6 percent they picked up during the same time last year and 17.4 percent in the third quarter of 2021, according to Redfin. That’s the largest share since Redfin started keeping track in 2000.
In total, these larger buyers acquired roughly 80,293 homes during the fourth quarter worth $49.9 billion, an increase from the $35 billion they bought a year ago, the report shows.
“While record-high home prices are problematic for individual homebuyers, they’re one reason why investor demand is stronger than ever,” Sheharyar Bokhari, an economist with Redfin, said in a statement. “Investors are chasing rising prices because rental payments are also skyrocketing, incentivizing investors who plan to rent out the homes they buy.