FACT CHECK: Did Private Investors Buy 44% Of All Single Family Homes In 2023?

Elias Atienza | Senior Reporter

A post shared on X claims that private investors bought 44% of all single family homes in 2023.

Verdict: Misleading

Private investors, both big and small, purchased 44% of all flipped homes in 2022, not 2023.

Fact Check:

Social media users are claiming that private investors bought 44% of single family homes in 2023. The Washington Times claimed that “In a shift, 44% of all single-family home purchases were by private investors in 2023.”

This claim, though, is misleading. The origin of the claim appears to be from this Medium article. The Medium article, citing a 2022 Business Insider article, claimed,”According to a study by Business Insider, during the third quarter, these firms accounted for 44% of the purchases of single-family homes, compared to independent operations.

The Business Insider article, though, does not state that 44% of single family homes were purchased by private investors. The article reports that 44% of flipped homes were bought by private investors in 2022, not 2023. It states that by “combining closings between both larger, private equity and smaller, independent operations, investors accounted for 44% of the purchases of flips during the third quarter, the data reveals.”

Flipped homes are different from all single family homes. (RELATED: Viral X Video Does Not Show Protest In London, Predates Israel-Hamas War)

Flipping is a real estate investment strategy where an investor purchases a property with the intention of selling it for a profit rather than using it. Investors who flip properties concentrate on the purchase and subsequent resale of one or a group of properties. Many investors attempt to generate a steady flow of income by engaging in frequent flips,” Investopedia’s website states.

Housing Wire also debunked this claim, stating that “there is nothing in the data to show that Wall Street has been the big buyer of homes in the U.S since 2000.”

“The overall market share of investors has grown since 2000 and is currently around 30%, as seen in the chart below, but the vast majority are small mom and pop investors,” Housing Wire reported.

The Washington Times issued a correction after a Check Your Fact inquiry. The correction reads, “Correction: A previous version of this report incorrectly reported the nature of private equity firms’ involvement in the purchases of single-family houses. They were purchasers of 44% of flipped homes, according to the Business Insider study.”

Elias Atienza

Senior Reporter
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