Small, out-of-state investors are snatching up homes in Colorado
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Small, out-of-state investors — or "laptop landlords" — made up more than 2% of home sales in Colorado during the first half of 2022, according to an analysis by Attom Data Solutions and the Wall Street Journal.
Why it matters: Much of the frustration over the rental crisis here and nationwide tends to be directed at corporations buying up hundreds of homes and renting them out for top dollar.
- But smaller investors, defined as those who own between two and 10 properties, are also driving up prices.
What's happening: Out-of-state investors are using technology — like crowdfunding platforms and online management services — to snap up homes online in a flash, sometimes sight unseen, according to the Wall Street Journal’s analysis.
- "It can all be done online," real estate consultant John Burns told the WSJ. "That's been the game-changer."
By the numbers: 2.2% of Colorado's home sales in the first half of 2022 were made by small, out-of-state investors — a percentage point higher than in 2019.
- That growth placed the state in the top 10 nationwide that saw the highest increases in these types of investments.
The big picture: Investors bought 28% of all single-family homes nationwide this February, up from 17% in 2019, according to the data firm CoreLogic, the Journal reports.
- Small, out-of-state investors accounted for 2.1% of all homes in the second quarter in 2022, according to Attom, up from 1.5% in 2019.
Zoom out: Southern metros and states like Georgia, North Carolina and Mississippi, are leading the nation in this investment.
- Similar investments are falling, however, in states like California, New York and Illinois.