A common question among the public is whether institutional investors continue to scoop up massive numbers of houses with large cash war chests and drive prices up to a point that regularly people can no longer afford one.
According to a Redfin analysis, institutional investors purchased 18.2% of US homes in the third quarter of 2021. And, as the firm separately noted, 43% of real estate agents think private pocket listings have become more common. Such purchases are a tool used by institutional investors interested in blocks of houses.
So it's not surprising that the National Association of Home Builders brings this question to the forefront. Everyone in the industry knows that prices have skyrocketed, but the NAHB put it into an interesting context: "Some homes are now earning more for their owners than their jobs: for the first time, the nationwide growth for the average American home value exceeded the inflation-adjusted median pretax income."
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