Are Investors Actually Buying Up All the Homes in Northern Colorado Springs?
Are you trying to buy a home but you feel like you’re up against deep-pocketed Wall Street investors snatching up everything in sight? Many people believe mega investors are driving up prices and buying up all the homes for sale, and that’s making it hard for regular buyers like you to compete.
But here’s the truth. Investor purchases are actually on the decline, and the big players aren’t nearly as active as you might think. Let’s dive into the facts and put this myth to rest.
Most Investors Are Small, Not Mega Investors
A common misconception is that massive institutional investors are dominating the market. In reality, that’s not the case. The Mortgage Reports explains:
“On average, small investors account for around 18% of the market, while mega investors represent only about 1%.”
Most real estate investors are mom-and-pop investors who own just a few properties — not large corporations buying up entire neighborhoods. They’re people like your neighbors who have another home they’re renting out or a vacation getaway.
Investor Home Purchases Are Dropping
But what about the big investors you hear about in the news? Lately, those institutional investors – the ones that make headlines – have pulled back and aren’t buying as many homes.
According to John Burns Research and Consulting (JBREC), at their all-time peak in Q2 2022, institutional investors (those owning 1,000+ single-family homes) only made up 2.4% of home sales. And that number has only come down since then. By Q3 2024, that number had fallen to just 0.3% (see graph below):
That’s a major shift, and it means far fewer investors are competing in the market now than just a few years ago.
Investors are clearly more reluctant to buy in today’s market, but why? The answer is largely because higher mortgage rates and home prices have made it less attractive for them.
The idea that Wall Street investors are buying up all the homes and making it impossible for you to compete is a myth. While some investors are still in the market, they’re not nearly as active as they were in past years.
Big institutional investors aren’t buying up all the homes – if anything they’re buying less than they have been. Let’s connect and talk about what’s happening in our local market. There could be more opportunities than you think.
How does knowing investors are buying fewer homes change the way you see your chances in today’s market?
What’s Happening in Northern Colorado Springs?
While investor activity has made headlines in recent years, the reality in Northern Colorado Springs is quite different. Based on local market conditions, small-scale investors are far more common than large institutional buyers, and overall, investor purchases appear to be on the decline.
Are Investors Active in Our Area?
Unlike some metro areas where institutional investors buy homes in bulk, Northern Colorado Springs is less investor-friendly due to our high median home values (currently $753K). Investors typically seek lower-cost properties that provide a strong return on investment (ROI)—which is harder to achieve in our market.
Additionally, while there’s no official data tracking investor purchases, key indicators—like properties owned by LLCs, short-term rental permits, and owner-occupancy rates—suggest that most buyers here are homeowners, not investors.
Who Do Local Buyers Compete Against?
Buyers in 80921, 80908, and 80132 rarely compete with investors unless they are targeting homes that:
✔️ Are significantly discounted due to repairs or outdated features
✔️ Are priced well below market value
✔️ Have potential for high-end short-term rentals
Unlike in the post-COVID buying frenzy—when both institutional and small-scale investors were highly active—today’s buyers are competing far more with other homeowners than investors.
Are Investors Still Buying Rentals Here?
Yes, but primarily in the buy-and-hold category, rather than house flipping. Flipping has slowed due to:
🔹 Higher borrowing costs (for those using financing)
🔹 Rising renovation expenses
🔹 Limited inventory of undervalued homes
Most investor purchases today involve:
✔️ 1031 exchanges (deferring taxes by reinvesting proceeds from another sale)
✔️ Vacation home investments
✔️ Future retirement homes for buyers planning to downsize later
What This Means for Homebuyers
If you’re thinking about buying, don’t let investor fears hold you back. The real challenge in our market isn’t investors—it’s affordability. With home prices significantly higher than the Colorado Springs average, buyers should focus on:
✅ Assessing their personal financial readiness
✅ Hiring a skilled broker with strong negotiation expertise
✅ Understanding financing options to compete effectively
A great agent can help you navigate negotiations, determine whether an investor is using cash or financing, and position your offer competitively.
Bottom Line
Institutional investors aren’t dominating Northern Colorado Springs. If anything, their presence has declined significantly in recent years. Buyers today are competing mostly against other homeowners, and with the right strategy, you can successfully navigate the market.
💬 Thinking of buying? Let’s talk about how you can make a competitive offer in today’s market!
📩 Contact Wolff Real Estate Group today!
