Summary
A study by Parcl Labs shows that institutional investors have been leaving the U.S. housing market even before President Donald Trump's proposal to restrict their purchase of single-family homes. The study highlights a decline in investor purchases and rising listing rates, especially in areas that experienced rapid growth during the pandemic.
Key Facts
- Institutional investors started leaving the U.S. housing market before President Trump proposed a ban on them buying single-family homes.
- The White House suggested this ban to make homes more affordable for Americans.
- In late 2023, investors bought 26% of low-priced homes in the U.S., reducing available inventory.
- Investors own a smaller percentage of homes than the percentage they are trying to sell in major U.S. markets.
- Dallas experienced a high discrepancy, with investors owning 9.2% of homes but 22.8% of listings.
- In Atlanta, investors are selling nearly two homes for every one they buy.
- The trend of exiting investors has led to more urgent selling and price reductions by sellers in several markets.
- Researchers predict that the investor exodus could lead to lower home prices across various markets.
