Although large investors made only 4.3 percent of single-family home purchases in 2014, they may be reducing the competitiveness of traditional buyers. With ready cash and sophisticated algorithms, investors get there first and make better bids.
Post-recession, regular buyers have reentered a home market long dominated by investors. The landscape, some observers say, has changed. "'Investors are winning over the first-time buyers in some bidding processes because investors are all cash,' says Lawrence Yun, a chief economist at the National Association of Realtors. For a seller that means a smoother deal: no waiting around on financing, loan approvals or other inconveniences that traditional buyers bring to the table."
As a result, the best deals get snapped up before regular buyers have a chance to mobilize. "Lots of investor activity is concentrated in markets where homes are still available at reasonable enough prices that purchasers can turn a profit."
Although investors do not dominate numerically, their tendency to monopolize the best markets can impact neighborhood demographics. "In some areas, investors buying up homes and turning them into rental properties means a shifting demographic for neighborhoods—from long-term residents to a flurry of short-term renters—which can be an unappealing prospect for some."
FULL STORY: Damn the Developers?
Why the McMansion Isn't Really Back
Joe Cortright criticizes reports linking high median new home sizes to a renewed demand for McMansions. The market for single-family homes, he argues, locks out buyers of modest means. Only the well-off are buying.
Million-Dollar Homes Becoming Standard Fare Across Los Angeles
As households with means seek to escape crowded apartment buildings and take advantage of historically low mortgage rates, average home prices of over $1 million are proliferating across the LA region.
Boston to Consider Workforce and Investor Diversity in Real Estate Decisions
Beginning this week, the city of Boston will ask developers how they plan to include women and minorities as workers and investors when putting city-owned real estate out for bid.
Seattle Legalizes Co-Living
A new state law requires all Washington cities to allow co-living facilities in areas zoned for multifamily housing.
NYC Officials Announce Broadway Pedestrianization Project
Two blocks of the marquee street will become mostly car-free public spaces.
Denver's New High-Rise Integrates Vertical Canyon in Architectural Design
Unlike other new builds in Denver, Colorado, a new high-rise reveals a unique “sculptural canyon” running vertically through the facade to foster a sense of community and connection to nature.
Opinion: Federal Government Must Continue Supporting Rural Housing Program
The incoming Congress will have a say in bolstering — or harming — the only federal housing program focused on affordable housing in rural areas.
Chicago Budget Fails to Include Snow Plowing Program
Disability rights advocates say the “Plow the Sidewalks” program is a necessity for Chicagoans with limited mobility in winter months.
Indy Bike Share Sees Sharp Growth Thanks to Free Pass Program
A new fleet of e-bikes and free access for Marion County residents are getting more people on bikes.
Urban Design for Planners 1: Software Tools
This six-course series explores essential urban design concepts using open source software and equips planners with the tools they need to participate fully in the urban design process.
Planning for Universal Design
Learn the tools for implementing Universal Design in planning regulations.
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American Planning Association, Sustainable Communities Division
HUDs Office of Policy Development and Research
HUDs Office of Policy Development and Research
City of Cambridge, Maryland
Newport County Development Council: Connect Greater Newport
Rockdale County Board of Commissioners