flexiblefullpage - default
Currently Reading

Real Estate Investors Are Backing Off in These High-Cost Markets

billboard - default
Housing Markets

Real Estate Investors Are Backing Off in These High-Cost Markets

Cash-strapped real estate investors are pulling back from overpriced metros that were once homebuying hotspots as a market correction dampens buyer demand

November 22, 2022
Real estate investor graphic with man looking at city under microscope
Image: Stock.adobe.com

Real-estate investors shook up a mid-pandemic homebuying boom by going toe to toe with first-time buyers and cutting down the competition with all-cash offers, but in a market correction, many are now pulling back. Mortgage rates are soaring, rental prices are beginning to fall, and waning buyer demand is forcing investors to reconsider their target metros.

In pricey markets like Seattle, skyrocketing housing prices are causing a slowdown in renter and buyer activity, and as a result, investment properties account for roughly 1 in 30 mortgages in the metro area, compared to 1 in 20 about a year ago, Realtor.com reports. 

Rising home values of the past several years pushed many of these investor buyers out of the premier, coastal real estate markets and into smaller cities, says Matthew Gardner, the chief economist for Seattle-based Windermere Real Estate. They include places like Boise, ID, where home prices were traditionally more affordable than urban hubs such as New York City, Boston, Chicago, and San Francisco.

Read more

Related Stories


Buyers Cite Unaffordable Prices as Biggest Hurdle to Homeownership in Q4 2022

Elevated home prices continue to pose an obstacle for house hunters, but most are persevering 

Market Data + Trends

Despite an Ever-Widening Housing Shortage, Builders Are Slowing Their Pace of New Construction

The U.S. needs to add more than 1 million new housing units to chip away at a worsening supply deficit, but housing starts are expected to slow in the year ahead


Does Rebounding Home Builder Confidence Signal an Upcoming Economic Growth Cycle?

Despite falling demand from priced out buyers, home builders remain optimistic about the year ahead, and experts say that rising sentiment may point toward a breakout year for a recovering economy

boombox1 -
native1 - default
halfpage2 -

More in Category

native2 - default
halfpage1 -

Create an account

By creating an account, you agree to Pro Builder's terms of service and privacy policy.

Daily Feed Newsletter

Get Pro Builder in your inbox

Each day, Pro Builder's editors assemble the latest breaking industry news, hottest trends, and most relevant research, delivered to your inbox.

Save the stories you care about

Lorem ipsum dolor sit amet lorem ipsum dolor sit amet lorem ipsum dolor sit amet.

The bookmark icon allows you to save any story to your account to read it later
Tap it once to save, and tap it again to unsave

It looks like you’re using an ad-blocker!

Pro Builder is an advertisting supported site and we noticed you have ad-blocking enabled in your browser. There are two ways you can keep reading:

Disable your ad-blocker
Disable now
Subscribe to Pro Builder
Already a member? Sign in
Become a Member

Subscribe to Pro Builder for unlimited access

Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.