New data from real estate firm ATTOM shows that institutional investors—large entities that purchase at least 10 properties per year—are stepping back from the Raleigh housing market. This mirrors a national trend, with investor activity slowing down as affordability challenges persist.

Why This Matters

For the past several years, institutional investors have been a significant force in the housing market, often outbidding individual buyers and making it more difficult for families to compete. However, their recent retreat suggests that even big players see current home prices as too high to justify large-scale investments.

Across North Carolina, institutional investors accounted for 7% of home sales in 2023, down slightly from 7.4% the previous year.

In Raleigh, investor purchases declined from 8.6% to 7.8%.

In Durham, however, investor activity ticked up slightly, from 6% to 6.6%.

Nationally, large institutional investors (those owning over 1,000 properties) accounted for just 0.3% of home purchases in the third quarter of 2023—the lowest share in seven years, according to The Wall Street Journal.

Why Investors Are Backing Off

Institutional investors are drawn to markets with strong population and job growth, high rental demand, and long-term appreciation potential. Raleigh has long been one of those markets, but rising home prices and high interest rates are making large-scale investment less attractive. These groups are signaling that homes are simply too expensive right now, even for those with deep pockets.

What This Means for Buyers and Sellers

For buyers, this shift could be a welcome change. With fewer institutional investors in the mix, there may be less competition—especially for entry-level and mid-priced homes. This could create more opportunities for first-time buyers and families to secure a home without having to go up against all-cash investor offers.

For sellers, this trend highlights the importance of pricing a home correctly and working with an agent who understands market shifts. With institutional buyers stepping back, sellers need a strong strategy to attract serious individual buyers willing to pay top dollar.

The Bottom Line

Institutional investors backing off is another sign that high home prices and interest rates are reshaping the real estate landscape. Whether you’re buying or selling, understanding these market dynamics is key to making smart decisions. If you’re navigating the Triangle’s real estate market and want expert guidance, let’s connect and create a strategy that works for you.