The US housing market took off early in the COVID-19 pandemic, and housing prices have risen sharply since then. The typical value of mid-priced homes jumped by more than 20% last year, from $ 284,000 in April 2021 to $ 344,000 in April 2022, according to home sales data compiled by real estate data firm Zillow. ..
However, much of the home sales surge was due to investors, not family members or first-time homebuyers.
According to real estate firm Redfin, investors accounted for 18.4% of total US home sales in the fourth quarter of 2021, which is more than one-sixth of home sales. A real estate investor can be a large company like Blackstone, or a local company or a wealthy individual. No matter who the investor is, their goal is the same – to profit from the real estate market by turning the house over or turning it into a rent.
Some major metropolitan areas have even more investors than the national average. Florida dominates the list, with five cities on the top 10 list across the country. Jacksonville, Florida is ranked 3rd in the country for investment real estate, with Miami (6th), Orlando (7th), Tampa (8th) and Fort Lauderdale in the 10th place in the country.
While the Jacksonville market totaled only $ 712.2 million, the total investor-managed real estate market share was just under 30%, sufficient to push it up to the third place in the country.
Miami investors accounted for an estimated 27.5% of home sales in the fourth quarter of 2021. That’s more than a quarter of home sales. All metropolitan homes purchased by investors during the last three months of 2021 are worth a total of $ 2,158,004,581.
Orlando, on the other hand, accounted for an estimated 25.9% of home sales in the fourth quarter of last year. The total value of all metropolitan homes purchased by investors during the last three months of 2021 is $ 1,138,404,449.
In Tampa, investors accounted for an estimated 24.2% of home sales in the fourth quarter. The total value of all metropolitan homes purchased by investors during the last three months of 2021 is $ 1,598,507,095. Finally, in the metropolitan area of Fort Lauderdale, Florida, investors accounted for about 21.0% of home sales over the same period. That’s one-fifth of home sales. All metropolitan homes purchased by investors during the last three months of 2021 totaled $ 1,143,778,531.
As the table below shows, large fluctuations in average home prices between different metro markets have had a significant impact on market share.
| Rank | Metro area | Investor market share, Q4 2021 (%) | Median Home Prices, April 2022 ($) | Total investment home sales, Q4 2021 ($ M) |
|---|---|---|---|---|
| 1 | Atlanta, Georgia | 32.7 | $ 430,000 | 2,857.3 |
| 2 | Charlotte, North Carolina | 32.1 | $ 400,000 | 1,255.1 |
| 3 | Jacksonville, Florida | 29.8 | $ 300,000 | 712.2 |
| Four | Las Vegas, Nevada | 29.2 | $ 435,000 | 1,738.0 |
| Five | Phoenix, Arizona | 28.4 | $ 460,000 | 3,795.0 |
| 6 | Miami, Florida | 27.5 | $ 525,000 | 2,158.0 |
| 7 | Orlando, Florida | 25.9 | $ 363,000 | 1,138.4 |
| 8 | Tampa, Florida | 24.2 | $ 390,000 | 1,598.5 |
| 9 | Nashville, Tennessee | 21.4 | $ 465,000 | 800.3 |
| Ten | Fort Lauderdale, Florida | 21.0 | $ 465,000 | 1,143.8 |
| 11 11 | San Diego, California | 20.3 | $ 925,000 | 2,352.5 |
| 12 | Anaheim, California | 19.8 | $ 875,000 | 2,683.4 |
| 13 | Detroit, Michigan | 19.4 | $ 81,700 | 119.1 |
| 14 | Sacramento, California | 19.1 | $ 518,000 | 1,181.0 |
| 15 | Los Angeles, California | 18.8 | $ 1,025,000 | 6,747.4 |