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.
National Parks Layoffs Will Cause Communities to Lose Billions
Thousands of essential park workers were laid off this week, just before the busy spring break season.
Retro-silient?: America’s First “Eco-burb,” The Woodlands Turns 50
A master-planned community north of Houston offers lessons on green infrastructure and resilient design, but falls short of its founder’s lofty affordability and walkability goals.
Delivering for America Plan Will Downgrade Mail Service in at Least 49.5 Percent of Zip Codes
Republican and Democrat lawmakers criticize the plan for its disproportionate negative impact on rural communities.
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Balancing Bombs and Butterflies: How the National Guard Protects a Rare Species
The National Guard at Fort Indiantown Gap uses GIS technology and land management strategies to balance military training with conservation efforts, ensuring the survival of the rare eastern regal fritillary butterfly.
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.
EMC Planning Group, Inc.
Planetizen
Planetizen
Mpact (formerly Rail~Volution)
Great Falls Development Authority, Inc.
HUDs Office of Policy Development and Research
NYU Wagner Graduate School of Public Service