Is Wall Street Taking Over the Housing Market?

Let’s face it – buying a home right now isn’t easy. You’re scrolling through endless listings, racing to open houses, and possibly losing out to stronger offers. Along the way, you might’ve heard that big Wall Street investors are snapping up all the homes, making it harder for regular buyers.

But here’s the truth: that’s largely a myth. While investors do play a role in the market, Redfin data shows they make up a relatively small portion.

Here’s what this means: the vast majority of homes—about five out of six—are being purchased by everyday buyers like you, not large-scale investors.

So, before you feel discouraged, let’s dig into what’s really happening. You might be surprised to learn that Wall Street isn’t the competition you think it is.

Most Investors Are Small-Scale Owners

Contrary to popular belief, most investors aren’t massive corporations. In fact, many are your neighbors. According to a recent report from CoreLogic, the majority of investors are small-scale, owning fewer than 10 properties. Think of your neighbor who rents out a second home or owns a vacation property—not a giant company with unlimited resources.

Large-scale investors, those owning thousands of properties, account for only about 1% of the market. Most properties are still in the hands of individuals or smaller investors, not Wall Street.

Investor Activity Is Declining

Not only are most investors small, but overall investor activity is dropping. CoreLogic reports:

“Investors made 80,000 purchases in June 2024, compared to 112,000 in June 2023—a nearly 50% decline from the peak of 149,000 purchases in June 2021.”

Looking ahead, CoreLogic predicts this downward trend will continue into 2025.

If it feels like you’re competing with investors, remember that their activity is slowing, not ramping up. This could mean fewer hurdles in your path to homeownership.

Bottom Line

The notion that Wall Street is buying up all the homes is mostly a myth. The majority of investors are small-scale, and their share of home purchases is steadily declining—so you can cross this concern off your list.

If you have questions about the housing market, reach out to a local real estate agent. They can provide clarity and help you understand what’s truly happening.