Scroll through your social feed and you’ll see plenty of finger-pointing about what’s driving up home prices. Lately, big investors have become the popular target. A recent national survey shows that nearly half of Americans (48%) believe large investors are the main reason housing feels so expensive.
But here’s the truth: the data doesn’t support that theory.
The Real Story About Investors
Yes, investors play a role in real estate, especially in certain markets. But they’re not buying up homes at the scale many people think.
According to Realtor.com, only 2.8% of all home purchases last year were made by large investors—those who own more than 50 properties. That means about 97% of homes were bought by everyday buyers and sellers, not massive corporations.
As Danielle Hale, Chief Economist at Realtor.com, explains:
“Investors do own significant shares of the housing stock in some neighborhoods, but nationwide, the share of investor-owned housing is not a major concern.”
So, if it’s not investors driving prices up, what is?
What’s Actually Pushing Prices Higher
The biggest factor behind rising home prices isn’t who’s buying—it’s what’s missing. The U.S. simply doesn’t have enough homes to meet demand.
Robert Dietz, Chief Economist at the National Association of Home Builders (NAHB), puts it clearly:
“It’s been popular among some to blame investors, but the fundamental driver of housing costs is the shortage itself—it’s driven by the fact that there’s a mismatch between the number of households and the actual size of the housing stock.”
That shortage of available homes is the real reason prices have climbed in communities across the South Sound, from Tacoma and Puyallup to Auburn, Sumner, and Bonney Lake. In growing areas like Lake Tapps, Normandy Park, Burien, SeaTac, and Des Moines, buyer demand remains strong while listings remain limited — and that imbalance keeps upward pressure on prices.
Bottom Line
Despite what the headlines suggest, big investors aren’t to blame for high housing costs. It’s the ongoing shortage of available homes that continues to shape today’s market.
If you’re wondering how local supply and demand are influencing prices in your neighborhood, visit Your Real Estate Story to get expert insight into what’s really driving home values across the Puget Sound region.
