Homebuyers face less housing market competition from investors right now

The pandemic housing boom saw a surge in real estate investor purchases due to soaring home prices and rents, as well as historically low mortgage rates. However, since mortgage rates spiked in 2022, the investor landscape has shifted dramatically, with tighter margins, slower rent growth, and fewer cash-flow opportunities. To understand how investors are adapting, ResiClub teamed up with Stessa to conduct a survey of single-family investors. The survey, which had 239 respondents, found that 45% of US real estate investors plan to grow their portfolios in the near term. The most frustrating part of the buying process for investors is finding deals that generate positive cash flow, with 65% of respondents citing this as their main challenge. Nearly half of surveyed investors said they would accept a mortgage rate up to 7% on their next purchase, while 58% self-manage their properties. Many investors also look to off-market deal sources, with 20% saying this is their first port of call. Zillow is the most helpful platform for real estate investors, with over 70% considering it very helpful or somewhat helpful. The survey highlights the challenges faced by single-family real estate investors in today's market, where it takes more work to find properties that generate enough cash flow. Overall, the shift in the investor landscape has made it harder for investors to find profitable opportunities, and they must adapt to the new market conditions to succeed.