Investors bought a record 18.2 percent of U.S. homes that were purchased during Q3 of this year, according to data released by Redfin. That’s up from a revised rate of 16.1 percent in the second quarter and 11.2 percent a year earlier.
A record 90,215 homes were bought by investors last quarter, up 10.1 percent from Q2 and up 80.2 percent from the third quarter of last year—the second-largest year-over-year gain on record.
“Increasing home prices fueled by an intense housing shortage have created opportunities for investors to reap big profits,” said Redfin Senior Economist Sheharyar Bokhari. “Those same factors have pushed more Americans to rent, which also creates opportunities for investors because investors typically turn the homes they purchase into rentals and can now charge higher rents.”
Some 76.8 percent of investor home purchases were all cash deals last quarter. Investors bought a record $63.6 billion worth of homes, up from $58.8 billion in the second quarter and $35.7 billion a year earlier.
Also up, the cost of the homes themselves. The typical home purchased by an investor in Q3 cost $438,770—5.3 percent higher than a year earlier.