Investor Market Share
Dated: October 15 2019
It is estimated that the number of homes being purchased by Investors is at high point for the last 6 to 8 years.
Nearly 11 % of all the homes purchased in 2019 were belived to be by an Investor according to CoreLogic.
These include homes purchased by flippers as well as those purchased by both large and small landlords to hold as Rentals. The number of rental households has increased 25% in the decade covering 2007 to 2017 according to the US Census.
This is apparent to anyone that has tried to rent a house lately. However what may not be as apparent is to whom these houses are being rented. House holds that have income in excess of 6 figures are now renting at a greater percentage then ever before ( 19% now vs. 12% in 2006 ) that may not seem like much , however it means that there are 3.4 Million households making more than 100,000 a year that are now renting instead of owning.
Considering that roughly half of the wealth in house is owed by the middle class this could have some long term financial effects, some of which are already being seen in the rise of student loans that may have otherwise been paid for by equity lines on the homes of parents vs. consumer debt by the upcoming generation of students.
If this trend continues then it could mean that we are facing a large transfer of wealth from renting households to those of both individual and corporate investors, as well as student lenders.