Are you trying to buy a home in Kansas City and feel like you’re competing with deep-pocketed investors who scoop up everything? You’re not alone. Many people believe that big Wall Street firms are snatching up homes, driving prices sky-high, and making it nearly impossible for everyday buyers to compete.
But here’s the real deal: Investor purchases are actually dropping, and those massive corporations aren’t nearly as active as people think. Let’s set the record straight.
Most Investors Are Local Folks – Not Mega Corporations
There’s a common belief that giant companies are buying up entire neighborhoods. The truth is, most investors are small-time, local owners—think your neighbor renting out a second property or someone with a vacation home.
According to The Mortgage Reports:
“On average, small investors account for around 18% of the market, while mega investors represent only about 1%.“
So, despite what you might hear, those headline-making companies play a much smaller role in the Kansas City market than expected.
Big Investors? They’re Tapping the Brakes.
What about those large institutional investors you hear about in the news? Well, they’ve been pulling back. According to John Burns Research and Consulting (JBREC), at their peak in mid-2022, institutional investors (companies owning 1,000+ single-family homes) made up 2.4% of home sales. Fast forward to Q3 2024, and that number has plummeted to just 0.3%.
That’s a massive shift! Fewer investors are currently competing for homes, which is good news if you’re looking to buy.
Why Are Investors Backing Off?
Two big reasons:
- Higher mortgage rates: Financing is more expensive, even for the big guys.
- Increased home prices: Investors aren’t as eager when profit margins shrink.
Bottom line? Kansas City’s housing market is less crowded with investors, giving local buyers like you a better shot.
What This Means for Kansas City Buyers
If you’re a buyer, this could be your moment. With fewer investors in the game, you might face less competition and have more negotiating power.
Let’s Talk About Your Next Move! Whether buying or selling in Kansas City, understanding what’s happening in the market is key. I’m here to help you navigate it with confidence. Reach out, and let’s chat about your options!
