Sep 6, 2022 - News

Small, out-of-state real estate investors eye Raleigh

Change in share of home purchases made by small out-of-state investors
Data: ATTOM Data; Note: Small investors are those purchasing two to 10 homes per year; Map: Simran Parwani/Axios

Out-of-state, small investors — or "laptop landlords" — accounted for more than 4% of home sales in Raleigh and Durham during the first half of 2022, according to an analysis by Attom Data Solutions and the Wall Street Journal.

Why it matters: Most of the frustration over the rental crisis in southern cities has been directed at big corporations buying up hundreds of homes and renting them out for top profit.

  • But smaller investors, defined as those who own between 2 and 10 homes, are also contributing to rising prices.
Share of home purchases by out-of-state small investors in select North Carolina metro areas
Data: ATTOM Data; Note: Small investors are those purchasing two to 10 homes per year; Chart: Simran Parwani/Axios

Details: Out-of-state investors are taking advantage of technology — like crowdfunding platforms and online management services — that enables them to buy a home quickly online, sometimes without even visiting the city where the home is located, according to the Wall Street Journal’s analysis.

The big picture: Investors bought up 28% of all single-family homes nationwide in February of this year, 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 states and metros 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.
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