There have been plenty of stories over the past year or so that speak to the hot U.S. housing market. Potential buyers have been bidding up prices as they compete with each other for a new home.
That’s not the whole story though. Individuals and companies that invest in real estate have been a big part of the mix, according to a new report from Realtor.com. The group analyzed U.S. deed records for the period between January 2000 and April 2021 to determine the number of investor sales versus purchases in the 50 largest U.S. markets.
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Realtor.com Chief Economist Danielle Hale commented on the findings:
Right now, data shows investors are buying more homes than they are selling, and while they get a lot of attention in today’s market, it’s worth remembering that they can also contribute to inventory levels. Whether a market is appealing to investors depends on a variety of factors, including how local home prices compare to rents. When home prices are rising and rents are more stagnant, investors are more likely to sell off properties and contribute inventory. On the other hand, the higher rents are compared to home prices the more attractive the market is to investors looking to buy homes and convert them into rental properties.
The following table shows the top 10 U.S. metropolitan areas where investors made net positive contributions to inventory in April of this year.
| Metro | Investor Net Contribution to Inventory | Median Listing Price | Median Listing Price Growth Y/Y | Median Rental Rate Y/Y | Price to Rent Ratio | Inventory per 1000 HH | Inventory Y/Y |
|---|---|---|---|---|---|---|---|
| Atlanta-Sandy Springs-Roswell, Ga. | 399 | $392,000 | 20.7% | 9.8% | 22 | 6.1 | −63.40% |
| Dallas-Fort Worth-Arlington, Texas | 239 | $380,000 | 12.0% | 3.6% | 24.5 | 2.0 | −69.7% |
| Baltimore-Columbia-Towson, Md. | 188 | $336,000 | 2.4% | 5.1% | 17.8 | 2.9 | −53.2% |
| Los Angeles-Long Beach-Anaheim, Calif. | 112 | $1,114,000 | 23.6% | −4.0% | 37.1 | 2.9 | −22.1% |
| San Francisco-Oakland-Hayward, Calif. | 93 | $1,062,000 | 13.6% | −10.9% | 33.3 | 2.0 | −6.2% |
| Washington-Arlington-Alexandria, DC-Va.-Md.-W. Va. | 84 | $506,000 | 1.2% | −3.9% | 22.4 | 2.9 | −33.0% |
| Houston-The Woodlands-Sugar Land, Texas | 73 | $355,000 | 14.1% | 0.9% | 24.4 | 4.8 | −54.9% |
| San Antonio-New Braunfels, Texas | 67 | $324,000 | 9.0% | 4.4% | 25.1 | 3.0 | −70.7% |
| San Jose-Sunnyvale-Santa Clara, Calif. | 66 | $1,238,000 | 3.3% | −12.5% | 38.3 | 1.8 | −10.8% |
| Indianapolis-Carmel-Anderson, Ind. | 60 | $287,000 | 0.9% | 8.6% | 22.4 | 2.0 | −59.5% |
The next table shows the 10 U.S. markets with the largest net negative April 2021 contributions to housing inventory.
| Metro | Investor Net Contribution to Inventory | Median Listing Price | Median Listing Price Growth Y/Y | Median Rental Rate Y/Y | Price to Rent Ratio | Inventory per 1000 HH | Inventory Y/Y |
|---|---|---|---|---|---|---|---|
| Phoenix-Mesa-Scottsdale, Ariz. | −429 | $457,000 | 21.9% | 11.3% | 25.9 | 2.2 | −68.0% |
| Charlotte-Concord-Gastonia, N.C.-S.C. | −287 | $403,000 | 18.7% | 7.8% | 24.8 | 2.1 | −66.9% |
| Miami-Fort Lauderdale-West Palm Beach, Fla. | −256 | $418,000 | 4.8% | 3.2% | 18.0 | 10.6 | −46.0% |
| Tampa-St. Petersburg-Clearwater, Fla. | −224 | $327,000 | 17.3% | 12.4% | 18.7 | 2.6 | −72.5% |
| Chicago-Naperville-Elgin, Ill.-Ind.-Wis. | −221 | $356,000 | 9.7% | −3.5% | 18.5 | 4.6 | −43.4% |
| Orlando-Kissimmee-Sanford, Fla. | −151 | $332,000 | 6.2% | 4.1% | 20.0 | 3.5 | −61.7% |
| Jacksonville, Fla. | −144 | $349,000 | 11.9% | 6.2% | 23.9 | 3.7 | −72.6% |
| St. Louis, Mo.-Ill. | −126 | $266,000 | 13.5% | 7.8% | 20.1 | 3.3 | −43.9% |
| Detroit-Warren-Dearborn, Mich | −121 | $285,000 | 16.3% | 4.4% | 21.1 | 2.7 | −53.5% |
| Seattle-Tacoma-Bellevue, Wash. | −106 | $679,000 | 13.2% | −7.3% | 31.8 | 1.7 | −44.6% |
Here’s the list of all 50 U.S. markets included in Realtor.com’s survey.
| Metro | Investor Net Contribution to Inventory | Median Listing Price | Median Listing Price Growth Y/Y | Median Rental Rate Y/Y | Price to Rent Ratio | Inventory per 1000 HH | Inventory Y/Y |
|---|---|---|---|---|---|---|---|
| Atlanta-Sandy Springs-Roswell, Ga. | 399 | $392,000 | 20.7% | 9.8% | 22 | 6.1 | −63.4% |
| Austin-Round Rock, Texas | 3 | $515,000 | 40.6% | 1.7% | 31.3 | 2.0 | −72.7% |
| Baltimore-Columbia-Towson, Md. | 188 | $336,000 | 2.4% | 5.1% | 17.8 | 2.9 | −53.2% |
| Birmingham-Hoover, Ala. | -93 | $277,000 | 6.4% | 7.8% | 22.7 | 3.8 | −51.4% |
| Boston-Cambridge-Newton, Mass.-N.H. | −49 | $699,000 | 13.3% | −6.3% | 24.9 | 2.6 | −25.1% |
| Buffalo-Cheektowaga-Niagara Falls, N.Y. | −5 | $254,000 | 15.7% | −0.9% | 19.3 | 1.5 | −41.3% |
| Charlotte-Concord-Gastonia, N.C.-S.C. | −287 | $403,000 | 18.7% | 7.8% | 24.8 | 2.1 | −66.9% |
| Chicago-Naperville-Elgin, Ill.-Ind.-Wis. | −221 | $356,000 | 9.7% | −3.5% | 18.5 | 4.6 | −43.4% |
| Cincinnati, Ohio-Ky.-Ind. | −46 | $352,000 | 15.8% | 7.3% | 26.7 | 1.9 | −54.4% |
| Cleveland-Elyria, Ohio | −27 | $234,000 | 17.0% | 7.0% | 18.2 | 2.2 | −54.5% |
| Columbus, Ohio | −37 | $315,000 | 1.7% | 6.2% | 24.1 | 1.6 | −48.9% |
| Dallas-Fort Worth-Arlington, Texas | 239 | $380,000 | 12.0% | 3.6% | 24.5 | 2.0 | −69.7% |
| Denver-Aurora-Lakewood, Colo. | −42 | $575,000 | 5.1% | 2.2% | 28.4 | 1.8 | −56.8% |
| Detroit-Warren-Dearborn, Mich | −121 | $285,000 | 16.3% | 4.4% | 21.1 | 2.7 | −53.5% |
| Hartford-West Hartford-East Hartford, Conn. | 2 | $310,000 | 8.8% | 7.1% | 17.2 | 5.9 | −35.5% |
| Houston-The Woodlands-Sugar Land, Texas | 73 | $355,000 | 14.10% | 0.9% | 24.4 | 4.8 | −54.9% |
| Indianapolis-Carmel-Anderson, Ind. | 60 | $287,000 | 0.9% | 8.6% | 22.4 | 2.0 | −59.5% |
| Jacksonville, Fla. | −144 | $349,000 | 11.9% | 6.2% | 23.9 | 3.7 | −72.6% |
| Kansas City, Mo.-Kan. | 39 | $368,000 | 8.1% | 2.2% | 28.5 | 2.3 | −55.5% |
| Las Vegas-Henderson-Paradise, Nev. | −23 | $379,000 | 15.3% | 10.3% | 24.5 | 5.0 | −51.2% |
| Los Angeles-Long Beach-Anaheim, Calif. | 112 | $1,114,000 | 23.6% | −4.0% | 37.1 | 2.9 | −22.1% |
| Louisville/Jefferson County, Ky.-Ind. | −16 | $272,000 | −1.0% | 7.1% | 22.8 | 2.6 | −54.0% |
| Memphis, Tenn.-Miss.-Ark. | −13 | $240,000 | −4.0% | 13.5% | 19 | 2 | −58.0% |
| Miami-Fort Lauderdale-West Palm Beach, Fla. | −256 | $418,000 | 4.8% | 3.2% | 18.0 | 10.6 | −46.0% |
| Milwaukee-Waukesha-West Allis, Wis. | −17 | $332,000 | −2.4% | −1.8% | 20.8 | 1.5 | −54.9% |
| Minneapolis-St. Paul-Bloomington, Minn.-Wis. | −26 | $366,000 | 0.3% | −1.0% | 21.2 | 3.2 | −44.5% |
| Nashville-Davidson–Murfreesboro–Franklin, Tenn. | 2 | $417,000 | 11.2% | 3.3% | 25.9 | 2.5 | −70.6% |
| New Orleans-Metairie, La. | −81 | $345,000 | 19.2% | 11.8% | 21.5 | 4.1 | −50.7% |
| New York-Newark-Jersey City, N.Y.-N.J.-Pa. | −85 | $629,000 | 9.3% | 0.0% | 22.3 | 7.9 | −18.1% |
| Oklahoma City, Okla. | −52 | $313,000 | 19.7% | 1.3% | 32.6 | 2.5 | −67.2% |
| Orlando-Kissimmee-Sanford, Fla. | −151 | $332,000 | 6.2% | 4.1% | 20.0 | 3.5 | −61.7% |
| Philadelphia-Camden-Wilmington, Pa.-N.J.-Del.-Md. | −91 | $340,000 | 13.3% | 3.9% | 17.7 | 3.2 | −36.8% |
| Phoenix-Mesa-Scottsdale, Ariz. | −429 | $457,000 | 21.9% | 11.3% | 25.9 | 2.2 | −68.0% |
| Pittsburgh, Pa. | −32 | $272,000 | 25.2% | 2.0% | 17.5 | 2.7 | −49.9% |
| Portland-Vancouver-Hillsboro, Ore.-Wash. | 16 | $540,000 | 12.9% | 2.3% | 29.3 | 2.6 | −54.6% |
| Providence-Warwick, R.I.-Mass. | 4 | $420,000 | 5.3% | 7.9% | 20.6 | 2.1 | −57.9% |
| Raleigh, N.C. | −27 | $412,000 | 12.6% | 5.4% | 27.1 | 2.2 | −72.6% |
| Richmond, Va. | −43 | $375,000 | 11.0% | 10.6% | 26.2 | 3 | −55.5% |
| Riverside-San Bernardino-Ontario, Calif. | 35 | $512,000 | 22.0% | 15.0% | 21.9 | 3 | −63.7% |
| Rochester, N.Y. | −31 | $264,000 | 5.8% | 8.6% | 18.4 | 1.9 | −41.6% |
| Sacramento–Roseville–Arden-Arcade, Calif. | 23 | $592,000 | 18.6% | 13.6% | 29 | 2.1 | −54.4% |
| San Antonio-New Braunfels, Texas | 67 | $324,000 | 9.0% | 4.4% | 25.1 | 3 | −70.7% |
| San Diego-Carlsbad, Calif. | 49 | $852,000 | 17.3% | 4.8% | 31.2 | 2.7 | −31.5% |
| San Francisco-Oakland-Hayward, Calif. | 93 | $1,062,000 | 13.6% | −10.9% | 33.3 | 2.0 | −6.2% |
| San Jose-Sunnyvale-Santa Clara, Calif. | 66 | $1,238,000 | 3.3% | −12.5% | 38.3 | 1.8 | −10.8% |
| Seattle-Tacoma-Bellevue, Wash. | −106 | $679,000 | 13.2% | −7.3% | 31.8 | 1.7 | −44.6% |
| St. Louis, Mo.-Ill. | −126 | $266,000 | 13.5% | 7.8% | 20.1 | 3.3 | −43.9% |
| Tampa-St. Petersburg-Clearwater, Fla. | −224 | $327,000 | 17.3% | 12.4% | 18.7 | 2.6 | −72.5% |
| Virginia Beach-Norfolk-Newport News, Va.-N.C. | −8 | $323,000 | 1.4% | 8.0% | 21.5 | 5.3 | −53.5% |
| Washington-Arlington-Alexandria, DC-Va.-Md.-W. Va. | 84 | $506,000 | 1.2% | −3.9% | 22.4 | 2.9 | −33.0% |
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