Soaring home prices and rents are fueling real estate companies’ appetite for houses, adding unwelcome competition for many would-be home buyers.
Residential real estate bought by companies or institutions hit an all-time high of 67,943 properties in the second quarter, according to Redfin, a Seattle online brokerage.
That’s a more than twofold increase from a year earlier, when the pandemic temporarily stymied the real estate market. It also represents 15.9% of all the properties sold in the April-to-June quarter, or just below the record high 16.1% share of sales in the first quarter of 2020, Redfin said.
The data, which go back to 2000, include all residential property types, including apartment buildings and condos. It excludes purchases by small, individual investors.
When looking at only single-family home sales, companies accounted for 16.1% of all purchases in the second quarter, Redfin said. Ten years ago, it was 8.4%.
The trend adds…