How Corporate Buyers Are Affecting the Real Estate Industry

Filed under: Real Estate Market

Looking back over the last 10 years in the real estate industry, it’s clear that things changed when the pandemic hit in 2020. Many homeowners are wondering why there is still high demand and low inventory. What is happening with real estate right now?

More Corporate Buyers are in the Market

One big change that we are seeing is that more corporate home buyers are stepping into the market. They are buying up residential inventory to use as investments and rental properties. To give you an idea of how things changed after the pandemic: In 2021, corporations bought 28% of all the homes sold in Texas. The numbers were 19% in Georgia and 16% in Florida.

This shift in the real estate industry means that we are seeing more properties owned by corporations and a smaller portion of homes privately owned by families or individuals. There’s no question that this trend is shifting the real estate market across the country.

How Corporate Buyers are Affecting Rent Prices

At the same time, rent prices are also increasing here in California and throughout the United States. Here are some interesting statistics to show what is happening since the pandemic:

  • The cost to rent a 2-bedroom detached home increased about 42% in Phoenix, 44% in Tampa, and 35% in Atlanta.
  • Nationwide, rent prices increased by 24%.

How Families are Being Affected

The recent recessions and economic challenges have impacted families, making it harder for some people to buy homes. Many of the properties that were previously owned by families or individuals are now owned by institutional groups.

These corporations saw the opportunity to put their money into lower-income and working-class neighborhoods. So, the working-class families are the ones who have suffered the most from these corporate giants.

Sometimes, the homes are purchased and held for years, which is why it’s getting harder and harder for younger people to own a house.

Options are Still Available for Home Ownership

Even though it might feel hard to break into the real estate industry, rest assured knowing that there are still options available for home ownership.

If you are looking for personalized recommendations from an experienced real estate team in Temecula, then reach out. Call, text, or email, and our team will help your family find the right solution for your unique needs: (951) 473-0390 or [email protected]