Investors have played a key role in driving the housing recovery, but their contribution also has come at a cost: more competition for first-time homebuyers. Housing observers have been well aware of this side effect, but a new report brings the diverging fortunes of these two types of homebuyers into sharp focus. It also suggests that first-time buyers are facing more competition than ever from investors, and that market conditions aren't likely to help their situation. 'A double-edged sword' “A housing recovery that is highly dependent on real estate investors is a bit of a double-edged sword,” said Daren Blomquist, senior vice president of Attom Data Solutions, which released the report in partnership with Clear Capital. "Rapidly rising home values have been good for homeowner equity, but also have caused an affordability crunch for the first-time homebuyers the housing market typically relies on for sustained, long-term growth." Blomquist added in an intervi...
- The share of U.S. homes purchased by investors recently hit its highest level in at least 21 years, according to Attom Data Solutions.
- Demand from investors has driven the recovery, but the resulting competition and price growth has adversely impacted first-time homebuyers.
- '"[F]uture growth in the housing market will continue to be largely in the laps of landlords," a new report says.
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