AgentOwned Answers Your SC Real Estate Qs - Are Investors Buying Up All the Homes?

If you're considering purchasing a home, staying informed about the latest real estate developments is crucial to making well-informed decisions. In South Carolina, where AgentOwned Realty stands as the local real estate expert, particularly in Charleston, you might be curious about the best places to live in Charleston, SC, and whether Wall Street is playing a significant role in the housing market.

AgentOwned Realty, recognized as the best brokerage in Charleston, SC, and boasting top-rated real estate agents, understands the importance of addressing concerns about external influences on the real estate landscape. A common question arises: Is Wall Street buying up all the homes in America? To unravel the truth, let's explore the real story based on available data.

To begin, it's essential to grasp the landscape of single-family homes (SFHs). According to SFR Investor, there are approximately eighty-two million SFHs in the United States. However, a significant majority, around sixty-eight million (82.93%), are owner-occupied residences. Subtracting these from the total number leaves roughly fourteen million single-family rentals (SFRs).

The assumption that institutional investors, especially large Wall Street firms, own all fourteen million remaining rental homes is far from accurate. Investors can be categorized into four groups: mom & pop investors (1-9 SFRs), regional investors (10-99 SFRs), smaller national investors (100-999 SFRs), and institutional investors (over 1,000 SFRs).

Breaking down the ownership percentages for each investor type reveals that large institutional investors are the minority, as illustrated in the chart below:

Contrary to popular belief perpetuated by news and social media, the majority of rental homes are not owned by large institutional investors. Instead, a significant portion is in the hands of small mom & pop investors, akin to your friends and neighbors.

The reality is that individuals, much like yourself, see homeownership as an investment opportunity. Many have acquired second homes over the past few years, either as rental properties to generate additional income or by choosing to retain their first house when moving up the property ladder.

In summary, the narrative that institutional investors are buying up all homes and hindering the average person's ability to purchase is not supported by the numbers. Institutional investors represent the smallest segment of the pie chart in terms of ownership.

In conclusion, while institutional investors play a role in the single-family rental market, they are not the sole force driving the real estate landscape. If you have further questions about the housing market or are contemplating a move to the South, considering factors like weather, schools, jobs, and climate in South Carolina, AgentOwned Realty is here to provide the expert guidance and context you need.

If you’re looking for your dream home, or if you need to sell your existing home, we can certainly help, our agents are ready and able! Agent Owned is a full service brokerage that can assist you in getting pre-qualified to loan approval. We can help you with title insurance, home insurance and the warranties you need to protect your most valuable asset. At AgentOwned, we have helped thousands of people buy and sell their homes, we have been in business for over 30 years and know what it takes to get the job done right the first time. 

Each agent has access to a team of qualified professionals from attorneys to mortgage specialists and access to a knowledge base of highly experienced Brokers that can handle any situation. Find the right agent now at: https://www.agentowned.com/all-agents 

To learn more about South Carolina including schools, employment and more see: https://www.agentowned.com/moving-to-south-carolina 

If you’re interested specifically in the Greater Charleston area see: https://www.agentowned.com/moving-to-charleston-sc 

If you’re looking for information about Manning, Sumter and the Lakes Area, see: https://www.agentowned.com/moving-to-manning-sumter 

And if you’re interested in the greater Anderson area see: https://www.agentowned.com/moving-to-anderson