Research shows distrust towards real estate investors in the housing market

Research shows distrust towards real estate investors in the housing market

Trump also signed an executive order Tuesday restricting federal financing and approval pathways used by institutional investors to acquire single-family homes, following a Jan. 7 statement that he planned to halt such purchases.

At the same time, Clever Offers research found that 32% of recent home sellers consider real estate investors to be unreliable.

While government officials argue that reducing competition among investors could make more homes available to individual buyers, some say institutional investors own a relatively small share of single-family homes nationwide, although ownership is higher in some metropolitan areas.

More than half (60%) of respondents say they distrust cash-purchase companies, and 51% say the same about iBuyers, tech-enabled instant deal platforms.

Reflecting high levels of distrust in real estate investors, about half of home sellers (44%) said they would not knowingly sell to a real estate investor, up from 38% in 2024. Nearly six in ten respondents (59%) labeled cash-buying companies as “scams.”

The survey reflects frustration over investor influence over housing availability and costs at a time when national housing affordability continues to challenge many potential buyers. More than 79% of Americans said they support regulating the housing market to rein in price increases.

When asked what change they would prioritize, 12% of Americans said they would impose stricter regulations on investors and businesses, coming in third after lowering home prices (35%) and lowering mortgage rates (25%).

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