Are High Home Prices Really Because of Investors?

If you follow real estate news or social media, you’ve probably heard people say that large investors are driving up home prices. In fact, nearly 48% of Americans believe investors are the main cause of rising housing costs.

But the data tells a different story.

Investor Impact Is Smaller Than You Think

While investors do play a role in certain areas, their overall influence on the housing market is quite limited. According to Realtor.com, large-scale investors (those owning 50 or more properties) accounted for only 2.8% of all home purchases last year.That means roughly 97% of all transactions were between typical buyers and sellers — not corporations.

In short, the idea that big investors are “buying up” all the homes and distorting prices is largely exaggerated.

The Real Issue: Lack of Supply

The true reason behind high home prices is simple — there aren’t enough homes for the number of people who want to buy them.Robert Dietz, chief economist at the National Association of Home Builders (NAHB), explains that the rise in housing costs is mainly due to inventory shortages, not investor activity. As the number of households continues to grow faster than available homes, competition drives prices upward.

Bottom Line

It’s easy to blame investors, but the real story lies in the supply-and-demand imbalance.As new construction and resale listings gradually increase, buyers will have more options — and affordability should begin to improve.

Now is the perfect time to speak with a local expert who understands your market. Together, you can analyze current trends and build a smart plan for buying or selling in 2025.

Chicago Real Estate – Hansangcheol📞 773-717-2227📧 ChicagoBDB@gmail.com