What’s Really Behind the Housing Crisis
A recent report has found that investors are snatching American homes at an alarming rate, leaving traditional homebuyers with fewer, more expensive, options.
According to the report by real estate firm Redfin, the share of homes purchased by investors hit a record high of 18.4% in the fourth quarter of 2021.
Investors bought roughly 80,000 homes worth $50 billion during the last three months of the year.
As a result, home prices are spiking.
In Las Vegas and Phoenix, where prices were up 28% and 25%, investors purchased roughly 30% of the houses sold in the fourth quarter.
“Ordinary folks are feeling the pinch,” said Redfin economist Sheharyar Bokhari, who decided to conduct the research after hearing anecdotes about individual house hunters increasingly losing out to investors.