Bulls vs. Bears: Investor Activity and Its Impact Across Wall Street's Favorite Housing Markets

Executive Summary

• Investor activity in the housing market is a lightning rod issue - Parcl Labs API is a best-in-class data source to do objective analysis on this topic for any market. So we did.
• We focused on the US national picture and markets with high concentrations of large Single Family Rental operators and Build-to-Rent activity: Atlanta, Dallas, Phoenix, Houston, Tampa, Charlotte, and Austin.
• When analyzing investor activity, both acquisitions and dispositions are critical for understanding true investor impact; net effect reveals market dynamics missed by focusing on purchases alone.
• US-Wide Investor Volume Activity Since 2019:
  • Peak investor activity: 2020Q4 (548,172 acquisitions nationwide)
  • Sharp decline: 61% drop in acquisitions from peak to 2024Q2
  • Total impact: 8,086,663 properties acquired vs. 7,568,464 disposed (2019-2024Q2)
• US-Wide Net Impact Shifts:
  • 2019-2020: Strong net acquisitions (peak 159,832 in 2019Q4)
  • 2021: Dramatic reversal to net dispositions (low -101,102 in 2021Q2)
  • Recent: Trend towards market equilibrium (2023Q3-2024Q2)
• Market-Specific Trends:
  • Bullish: Atlanta, Charlotte, Houston (consistent net acquisitions)
  • Bearish: Phoenix (sustained net dispositions since 2021Q1)
  • Mixed: Austin, Tampa, Dallas (fluctuating between acquisitions and dispositions)
• Key Takeaways:
  • Investor activity cooled significantly post-2020 across all markets
  • Most markets showing signs of stabilization or equilibrium in recent quarters
  • Phoenix stands out with persistent net dispositions, contrasting the national trend
  • Atlanta remains a hotspot for investor acquisitions despite overall market cooldown
• As rising inventory and the prospect of falling interest rates create new acquisition opportunities, investor activity in housing markets demands close attention. We will be watching closely, and you can too with the Parcl Labs API.

Background

Investor activity in housing markets sparks intense debate. While many focus solely on investor purchases, acquisitions tell only half the story. Understanding dispositions is critical to grasp the impact of investor activity. At Parcl Labs, we've become a leading source of this information, with our investor API providing metrics for context-based analysis on acquisitions, dispositions, and net effect.

We've applied this approach to Wall Street's favorite housing markets, where institutions own the most homes, examining activity across all investor scales - from mom-and-pops to major operators.

So, are investors really buying up all the homes, leaving nothing for everyday aspiring homeowners? Let's let the data speak for itself.

How Has Investor Activity Shaped the US Housing Market Since 2019?

Investor fervor cooled rapidly post-2020 peak, transitioning from aggressive acquisitions to net selling, with recent signs of market equilibrium.

• Peak Activity: Highest acquisitions in 2020Q4 (548,172); highest dispositions in 2020Q4 (430,887)
• Market Shift: Net acquisitions turned negative in 2021Q1, reaching -101,102 in 2021Q2
• Volume Trend: Acquisitions down 61% from peak (2020Q4) to latest data (2024Q2)
• Recent Stability: Near-equilibrium between acquisitions and dispositions since 2023Q3
• Total Impact: 8,086,663 properties acquired vs. 7,568,464 disposed (2019-2024Q2)

How Has Investor Activity Shaped Atlanta's Housing Market Since 2019?

Investor acquisitions surged post-2020, peaking in late 2021, before declining sharply; recent quarters show renewed net acquisition trend.

• Peak Activity: Highest acquisitions in 2021Q4 (17,526); highest dispositions in 2021Q4 (14,138)
• Market Shift: Strong net acquisitions throughout, peaking at 5,128 in 2021Q3
• Volume Trend: Acquisitions down 61.7% from peak (2021Q4) to latest data (2024Q2)
• Recent Stability: Consistent net acquisitions since 2023Q1, averaging 1,967 per quarter
• Total Impact: 258,710 properties acquired vs. 204,073 disposed (2019-2024Q2)

How Has Investor Activity Shaped Phoenix's Housing Market Since 2019?

Investor acquisitions boomed through 2020, followed by a dramatic reversal to net dispositions; market remains in disposition phase.

• Peak Activity: Highest acquisitions in 2020Q4 (24,294); highest dispositions in 2021Q2 (17,419)
• Market Shift: Net acquisitions turned negative in 2021Q1, reaching -5,235 in 2021Q2
• Volume Trend: Acquisitions down 77.0% from peak (2020Q4) to latest data (2024Q2)
• Recent Stability: Consistent net dispositions since 2021Q1, averaging -2,516 per quarter
• Total Impact: 286,480 properties acquired vs. 316,831 disposed (2019-2024Q2)

How Has Investor Activity Shaped Austin's Housing Market Since 2019?

Austin's investor market peaked in 2020, followed by a sharp decline and shift to net dispositions; recent quarters show near-equilibrium.

• Peak Activity: Highest acquisitions in 2020Q4 (4,255); highest dispositions in 2020Q4 (3,262)
• Market Shift: Net acquisitions turned negative in 2021Q2, reaching -724 in 2022Q1
• Volume Trend: Acquisitions down 76.1% from peak (2020Q4) to latest data (2024Q2)
• Recent Stability: Near-equilibrium since 2023Q3, with slight fluctuations between net acquisitions and dispositions
• Total Impact: 55,500 properties acquired vs. 51,481 disposed (2019-2024Q2)

How Has Investor Activity Shaped Charlotte's Housing Market Since 2019?

Charlotte saw sustained investor growth through 2021, followed by a sharp decline; recent quarters show consistent but reduced net acquisitions.

• Peak Activity: Highest acquisitions in 2021Q3 (8,042); highest dispositions in 2021Q4 (5,308)
• Market Shift: Maintained net acquisitions throughout, peaking at 2,912 in 2021Q3
• Volume Trend: Acquisitions down 70.5% from peak (2021Q3) to latest data (2024Q2)
• Recent Stability: Consistent but lower net acquisitions since 2023Q2, averaging 341 per quarter
• Total Impact: 119,363 properties acquired vs. 98,114 disposed (2019-2024Q2)

How Has Investor Activity Shaped Houston's Housing Market Since 2019?

Houston maintained net acquisitions throughout, peaking in 2020 before declining; recent quarters show consistent but reduced investor interest.

• Peak Activity: Highest acquisitions in 2020Q4 (11,140); highest dispositions in 2020Q4 (8,778)
• Market Shift: Consistently positive net acquisitions, peaking at 2,696 in 2019Q3
• Volume Trend: Acquisitions down 67.3% from peak (2020Q4) to latest data (2024Q2)
• Recent Stability: Consistent but lower net acquisitions since 2022Q3, averaging 680 per quarter
• Total Impact: 160,217 properties acquired vs. 134,812 disposed (2019-2024Q2)

How Has Investor Activity Shaped Tampa's Housing Market Since 2019?

Tampa saw strong investor activity through 2020, followed by a shift to net dispositions; recent quarters show a trend towards market equilibrium.

• Peak Activity: Highest acquisitions in 2020Q4 (8,701); highest dispositions in 2021Q4 (7,470)
• Market Shift: Net acquisitions turned negative in 2021Q1, reaching -956 in the same quarter
• Volume Trend: Acquisitions down 57.8% from peak (2020Q4) to latest data (2024Q2)
• Recent Stability: Near-equilibrium since 2023Q3, with slight net dispositions
• Total Impact: 133,387 properties acquired vs. 135,391 disposed (2019-2024Q2)

How Has Investor Activity Shaped Dallas's Housing Market Since 2019?

Dallas maintained strong investor interest through 2020, followed by a period of equilibrium; recent quarters show a return to modest net acquisitions.

• Peak Activity: Highest acquisitions in 2020Q4 (14,956); highest dispositions in 2020Q4 (12,160)
• Market Shift: Briefly reached equilibrium in 2021Q1, with net acquisitions of 0
• Volume Trend: Acquisitions down 67.9% from peak (2020Q4) to latest data (2024Q2)
• Recent Stability: Consistent net acquisitions since 2023Q3, averaging 376 per quarter
• Total Impact: 221,167 properties acquired vs. 203,414 disposed (2019-2024Q2)

Conclusion

Tracking investor activity in the housing market is critical for understanding market dynamics, predicting trends, and making informed decisions. The interplay between acquisitions and dispositions reveals nuanced patterns that simple purchase data misses. As our analysis shows, investor behavior varies significantly across markets and time.

For real-time insights into investor activity across any U.S. market, explore our free Parcl Labs Investor API.

‍