Investors showed no fear of rising home prices in the second quarter, going on a spending spree not seen in the sector in more than 20 years.
As home prices and rents appreciated, housing investors poured $49 billion into acquisitions during the second quarter. Investors were responsible for buying almost 68,000 homes, up more than 10,000 from the previous quarter, according to Redfin data reported by Bloomberg News.
The Redfin report, including multifamily buildings, condos and single-family homes, found purchases from investors represented 16 percent of all home sales during the quarter.
Miami was one of several markets where investors accounted for more than 20 percent of home sales in the quarter. In that market, they bought 2,640 homes for $2.6 billion, making up 24.2 percent of sales.
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Other markets where a large percentage of sales came from investors were Phoenix (24.5 percent), Atlanta (23.6 percent), Charlotte (22.8 percent) and Las Vegas (22.8 percent).
In Chicago, housing investors spent more than $871 million in the second quarter, making up 10.3 percent of home sales. In Los Angeles, the figures were $7.3 billion and 17 percent, and in New York City, $2.7 billion and 13 percent of home sales.
Investor home purchases dipped dramatically during the initial months of the pandemic, with fewer than 33,000 reported in the second quarter of 2020, according to Redfin.
[Bloomberg News] — Holden Walter-Warner