DENVER (KDVR) — Investors have been snapping up more and more homes across the country, including in Colorado.
It’s a trend that began after the foreclosures of Great Recession, spiked last year and remained high into 2022, according to an analysis from Stateline, an initiative of The Pew Charitable Trusts.
“Investor ownership grew again last year as pandemic-related demand for suburban housing rose, and investors saw a chance to win bidding wars with cash offers,” Stateline reported.
The July analysis found that investors nationwide bought 24% of the single-family homes sold in the U.S. last year. That’s up from 15-16% each year since 2012.
Georgia, Arizona and Nevada topped the list, with investors buying at least 30% of homes in each of those states. California and Texas came next, with investors buying at least 29% of homes.
Colorado fell in line with the national percentage, with investors buying 24% of homes in the state last year, according to Stateline’s analysis. That puts Colorado among 18 states where investors bought at least that share of homes.
In Florida, Nevada, Vermont and Washington, investor home purchases doubled or more from 2020.
Stateline analyzed data provided by CoreLogic, a California-based data analytics firm.
Most of the investor purchases were “made by smaller groups,” Stateline reported. The analysis found that “mega” investors, who have a thousand or more homes, bought 3% of houses last year and into 2022, compared to about 1% in years prior.
Experts told Stateline that investor interest can be linked to low housing supply.
Rising mortgage rates cooled the Colorado housing market this summer and increased housing inventory in the state. Still, the statewide affordability index was at a record low, with the median home price reaching nearly $600,000, the FOX31 Data Desk found.
Voters statewide will decide this fall whether to dedicate some of the state’s tax surplus to affordable housing. If approved, the measure would put some of the money normally refunded to taxpayers toward building new affordable housing units.
Some communities are also taking action to better take stock of rental properties and their owners. Like in Los Angeles County, a new program in Denver will require landlords to register with the city and for their properties to pass inspections.