Shift to short-term ownership
The largest institutional buyers in 2024 were businesses that had temporarily held only real estate. Favourite company Open door and Offerpad Normally, the home will be resold within 90 days, but wholesalers New West and Network Worth Structured transactions to avoid direct ownership.
Last year’s Opendoor purchases doubled New Western’s second-place total.
Traditional SFR funds – Includes Invitation Home, American Homes 4 Rent, Amherstand PRETIUM – It remained active, but at a more measured pace. These four are one of the six largest SFR funds still undertaking acquisitions; Tricon and FirstKey It also maintains some activities.
Trueholdsales leaseback companies focused on the Midwest market, have grown significantly, WedgwoodSouthern California-based homeflipper has continued operations in dozens of states and has won top 10 list spots for the second year in a row.
The scale of institutional takeovers remains part of what it had been during the pandemic fuel purchase boom. Even among active buyers, net acquisitions were low. Inviting homes, for example, sold 1,575 homes in 2024, further reducing their overall holdings.
Despite the slowdown, some private SFR funds, such as Amherst and Pretium, continued to buy homes in a range of dozens to hundreds of real estate per month. Public SFR Fund Invitation Homes remained stable despite reducing its market presence.
Local hot spots
Atlanta With all the major buyers except Truehold, along with all the major buyers operating at Metro, they led the country to the amount of purchase. Texas and Florida also saw high-profile investors’ activities. Dallas stands out as a particularly competitive market with all the top 10 buyers present.
The strategies of these buyers were very different. Wedgwood focused on California’s Inland Empire and Los Angeles, while Truhold prioritized St. Louis and Oklahoma City. Meanwhile, SFR funds were concentrated on similar property types, but competed in multiple regions.
Real estate investors bought fewer homes in the fourth quarter of 2024. redfin.
Investors purchased 47,004 homes during the quarter, down 3.9% from the fourth quarter of 2023, marking the sharpest decline in the year. This decline comes amidst high mortgage rates, slowing demand for home buyers and uncertain economic outlook.
