Are Big Investors Really to Blame for High Home Prices?
According to a recent national survey, many people believe big investors are the main reason housing prices have climbed so high.
But while that theory sounds convincing, the data tells a different story.
The Truth About Investors
Investors definitely play a role in the housing market — especially in some local areas — but they’re not buying up all the homes like you often hear online.
According to Realtor.com, only 2.8% of all home purchases last year were made by big investors (those who own 50 or more properties).
That means nearly 97% of homes were bought and sold by regular people, not corporations.
Danielle Hale, Chief Economist at Realtor.com, says it best:
“Investors do own significant shares of the housing stock in some neighborhoods, but nationwide, the share of investor-owned housing is not a major concern.”
What’s Really Behind Rising Home Prices
So, if investors aren’t the culprit, what’s driving prices up?
The real issue is a lack of supply. There simply aren’t enough homes available to meet demand.
Robert Dietz, Chief Economist at the National Association of Home Builders (NAHB), explains:
“It’s been popular among some to blame investors, but with housing, the economics of that don’t make a lot of sense. The fundamental driver of housing costs is the shortage itself—it’s driven by the fact that there’s a mismatch between the number of households and the actual size of the housing stock.”
When demand exceeds supply, prices naturally rise and that’s exactly what’s been happening across much of the country.
Bottom Line
It’s easy to believe investors caused today’s housing challenges. But the truth is simpler:
👉 We just need more homes.
And the good news? That’s finally starting to happen.
As more listings hit the market, buying might start to feel realistic again especially with the right agent on your side.
📞 Thinking about buying or selling? Let’s talk about what’s happening in your local market and create a plan that works for you.
