Institutional Investors Are Quietly Returning to the Housing Market

Institutional investors are kicking the tires in the American housing market once again.Investors who own more than 1,000 homes accounted for 2.2% of the share of home sales in August, up from 1.4% in February, according to new data from real estate analytics firm Cotality. The rebound came as Congress finalized legislation impacting large institutional investors in the housing market, bringing regulatory clarity to the sector.In January, President Donald Trump signed an executive order to discourage investors from benefiting from federal assistance in home purchases. Congress codified further limitations in the 21st Century Road to Housing Act that became law in July. That bill targets investors who own more than 350 properties. After some wrangling, it excludes the build-to-rent industry.Small investors, though, tend to have a far larger presence in the housing market, Realtor.com® found. But large investors are concentrated in some large markets where they account for a significant share of the housing stock, Realtor.com found.Realtor.com economist Hannah Jones says climbing mortgage rates are weighing on the market, and that's sent some individual buyers to the sidelines, poten...