Are you trying to buy a home but feel like deep-pocketed Wall Street investors are grabbing everything first? It’s a common belief that mega investors are driving up prices and making it tough for everyday buyers like you to compete.

But here’s some good news—investor activity is actually slowing down, and those big players aren’t nearly as active as many people assume. Let’s take a closer look at the facts to clear up this misconception.

Most Investors Are Small, Not Corporate Giants

A common myth is that massive institutional investors are dominating the market. In reality, that’s far from the truth. As The Mortgage Reports explains:

“On average, small investors account for around 18% of the market, while mega investors represent only about 1%.”

Most real estate investors are actually small-scale, everyday people—your neighbors, local landlords, or families who own an extra home as a rental or vacation property. They aren’t large corporations buying up entire neighborhoods, which means the competition isn’t as fierce as it might seem.

Investor Home Purchases Are Declining

But what about the big investors that often make headlines? The reality is that institutional investors—the ones with massive property portfolios—have been pulling back significantly.

According to John Burns Research and Consulting (JBREC), these large investors (those owning 1,000+ single-family homes) peaked at just 2.4% of home sales in Q2 2022. Since then, their presence has dropped dramatically, reaching only 0.3% in Q3 2024 (see graph below).

That’s a significant shift, showing that fewer investors are competing in the market now than in past years.

Why Are Investors Buying Less?

So, what’s behind this slowdown? The answer is simple—higher mortgage rates and rising home prices have made real estate investments less attractive for institutional buyers. With profitability shrinking, many of these big investors have stepped back, leaving more opportunities for regular buyers like you.

The idea that Wall Street investors are taking over the housing market and making it impossible for buyers to compete is a myth. While some investors are still active, they’re not nearly as influential as they once were.

Bottom Line

The notion that institutional investors are buying up all the homes is simply not true. In fact, they’re purchasing fewer properties than in previous years. If you’re considering buying a home, now may be a better time than you think.

Want to explore your options in today’s market? Reach out to Mike Panza and the team at Panza Home Group for expert guidance. They can help you navigate the market and find the right opportunities. Contact them here.