The Biggest Exodus since 2008 just got worse (Redfin reports 70% investor drop in FL)
Video Overview & Insights
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Wall Street Investors Are Leaving the Housing Market.
Investor home purchases are now down more than 50% from their peak, with cities like Orlando, Phoenix, Nashville, Atlanta, and Jacksonville seeing some of the biggest pullbacks in demand.
In this video, I break down why investors are exiting, how the economics of rental properties have changed, and what it means for home prices going forward.
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The biggest real estate investor slowdown in 20 years is now hitting the U.S. housing market.
New data from Redfin shows that investor home purchases have collapsed by more than 50% from their pandemic peak, falling to the lowest level since 2014-2015 in many markets. Cities like Jacksonville, Atlanta, Charlotte, Orlando, Nashville, and Phoenix have seen investor purchases drop between 65% and 77%.
I visited the Holly Coast paradise - no affordability issues or crime. Just neighbors helping neighbors
This is a major shift from the narrative that Wall Street investors would continue buying homes forever. Instead, investors are pulling back as mortgage rates remain elevated, rents cool, and the economics of owning rental properties deteriorate.
In this video, I break down:
inverter home buying greater than 0. still to much! homes are for living in not making money!!
ā¢ Why investor demand is collapsing across America
ā¢ The markets seeing the biggest pullback in investor purchases
Itās good that the investors are leaving
ā¢ Why Orlando, Nashville, and Phoenix are flashing warning signs
ā¢ The relationship between mortgage rates and rental property returns
Good
ā¢ How investor behavior helped drive prices higher during the pandemic
ā¢ Why home values are already declining in many investor-heavy markets
Are you a realtor? Are you sad?
ā¢ The new legislation targeting large Wall Street landlords
ā¢ Whether we're entering a completely new era for housing investors
Good!!!
ā¢ How to evaluate investment properties in today's market
ā¢ Whether now is the right time to buy a rental property
Iāve been looking for an apartment in Dallas. New thing they have come up with is self employed people have to have enough money in their account to pay rent for the whole lease term. If you have a 6 month lease you would need $21,000 in an account to qualify for the apartment. This was a regular apartment.
I also explain why the investment math that fueled the housing boom from 2010-2022 has fundamentally changed, and why many investors are deciding to sit on the sidelines.
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People who own 10 homes or less make up the vast majority of single family landlords. Mom and Pop landlord LLC have always made up the vast majority of investor purchases. Somehow the entire country thinks it's cooperations thats hording starter homes. Like most everything in this economy it's Boomers. They'll all be dying soon and their kids will not be able to float 10 rental homes with increasing costs and rents that have tapped out.
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My family sold my parentās home and claimed $1 million in equity, at the top of the market. I wouldnāt buy a home today, nor anytime soon, and perhaps never, because America is no place to live anymore, it has become a debtorās prison.
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There is room to negotiate rent renewals in some of these markets. My son in the Mesa AZ area was ready to move out towards the end of his apartment lease. I told him to negotiate and he got to stay paying the same rent along with a few weeks free as offered to new tenants.
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Nobody needs more than 1 home/property per person or family. Wanna really fix the market? That's how you'd do it.
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7:54 People think landlords are greedy . Thank you for proving why they are not and how theyāre barely breaking even.
More User Perspectives
A young couple with children just got hit with a roughly 90% increase in San Francisco. If I remember right, they are paying $3700/month. Their new landlord is raising their rent to $7000/month.
@QrayonNick, investors should look at depressed old-industrial towns. The hamlet I live in has renovated 2-BR houses going for $50K, that can be rented out for $700,
@swampwizCA statewide rent control is capped at 10% so no worries about 20%
@Hellooooooo989But guess what. Lots of REITs locking up withdrawals. Hang on tight.
@stalbaumI build small apartment buildings from the ground up and rent them out. I build debt free and one at a time. I'm not sure how to calculate ROI but I do know that I'm making a lot more money than pretty much anyone else is because all I have into the project is the land cost and material cost. I do all of the labor myself with zero hired labor except for on concrete days.
@Rob-r2sLet's be real 70-90% of those investors should of never been able to buy those single family homes in the first place. It's terrible for the working class in every way.
@bignspicy984Prices need to go down and this is a very good way to do it.
@crp9985the whole thing falls apart if home prices go down, right now most of the housing market is investors, both large scale and mom and pops. Now that cap rates a sub interest their only hope was appreciation in value and rent. They wanted to hold on long enough for the price to go up enough to turn a profit. BUT is your cap is 4% and your not getting at least 3% appreciation then it is time to reallocate to a different investment.
@mythoughtsonfaith1031We keep arguing in the comments instead of calling it what it is. This is slavery. When 1 percent owns practically everything itās literally just slavery.
@MrAk474lifeRED State BLUES
@gucci_pilotI am so tired of the naieve comments on this channel
@TIGERSDFW1929 is here. Fire sale this fall, winter and into 2027. Cash is kingā¦.
@rnskfamily7672Prices need to drop to 1990 levels
@Kelli-p4jPrices need to go down for current wages and number of employed people supposedly being at or near an all time high. Both of those are changing as well, so prices will need to go lower
@MeJonTheDonthe crash thats coming will be far worse than anything since the Great Depression. The AI bubble, housing marking, credit card debt, student loans....so many different aspects of the market are so far overleveraged that there is no saving it
@sargepent9815Of course investors are getting out they're the ones who caused this whole damn problem to begin with all they did was to fuk up the countryššš. They're like vampires if anybody did know they suck the blood out and then they leave
@prmhighflr69Good. They tend to make crappy landlords.
@spinecatAsset inflation. My kids can't afford to buy a house. It just doesn't make any sense. Hopefully prices will come down.
@tipofdamittAny chance this is due to politics?
Reds leaving Blue States maybe?
It seems that California is SCREWED for buyers.......
@Susan-CaliforniaGood, we don't need investors in the housing market, it's a place for people to purchase a place to live.
@djmotion86I live in Kansas City and a mutual friend of mine lost 7 offers on houses to people from California moving here still offering thousands over asking. If it aināt one thing itās another. š
@jilliashiiNick... as always, great stuff! You're the ONLY one out there "telling it like it is"! Thanks for all you do. I'm in AZ and refuse to buy until prices drop significantly.
@ToddS-qu3elHome prices, land prices, insurance, and maintenance costs need to fall at least 50%. Steep correction and deflation is essential.
@stephenbush7200Dude, you are so out of fucking touch with reality you dont even know what your own fucking data is telling you.
The "investors" that you speak of are actually comprised mostly of "private equity" that got their money from "private credit" that got their money from investment banks that got their money from commercial banks that got their money directly from the BIG FED PRINTING PRESS. Those loans, originated at the lowest interest rates in world history, are now rolling over at HIGHER interest rates and the "investments" .... aka.. SINGLE FAMILY HOMES that shoulda gone to US citizens, are now going sour. So..... in an attempt to save the poor investors from the big bad high interest rates, the government has decided to allow wallstreet to use the US citizens 401K money to bail them out. Unfortunately, the realestate scam... er... investment pool was so large and deep that even the 401k money wasnt enough to keep these assholes solvent. So... now, everyone is silently on the hook for the private equity BUST that is quickly building pressure just under the surface of the veneer of all of those shiny new developments that the blood sucking parasitic big box builders churned out for the poor sophisticated investment community... and now, because theyre so smart, have decided to take a step back from the buying spree.
Every speculative bubble inevitably pops. The "investors" always say "It's different this time" and the banks go along with it. What a bunch of morons. Each time they wreck the economy. Prison for them all.
@MusicFromNowhereThe BOOMERS (investors) don't care about their grandkids, until they have them in the basement. They deserve to loose it ALL!
@mathninja3879Many employees, working for the top employers, qualify for government assistance. But isnāt the CEO actually getting government assistance so his employees donāt starve to death? Or is it shareholders getting the assistance to fatten their own pockets?ā¦But hey, at least they can still afford their mansions and donāt have to apply for the food and rent vouchers themselvesā¦just benefit from the āemployeeā discount.
@yvonned2781So this entire video was just an advertisement. Nice
@BenVaughnTechAmericans want to buy everything on sale EXCEPT for homes and stocks. These Americans only buy when prices are going higher, the exact opposite of common sense.
@P.GaloreThey are in other markets. Idiot.
@SecretbeachborderNo need to watch your vids any longer. Over the last year and a half you have said the same thing. Same crap about it's happening and the market is crashing, blah, blah, blah. The prices are still out of control ans the buyers are still purchasing in my area no matter what the cost. Useless info at this point.
@steno-momWithout high paying jobs, owning a house is a useless venture. And I donāt feel sorry for anyone losing their equity, if they have any, and whom are stuck with what they bought. If you arenāt in on the theft of tax dollars, you probably will never afford to live ever again. As to people losing their lives and livelihoods, please explain to me who should be prosecuted for creating the game, because no-one gets punished in America, they get away with their crimes, which means America is a criminal enterprise of, by, and for criminals with Aryan Ideologies (AI).
@vascodesenaPrices are not going down. Ever. Keep dreaming.
@ShadyD365A failed federal govt and corrupt capital manipulation are the cause of these insane home prices. We are long overdue for a major price correction.
@R.S.StravinskyHome prices are currently double as to what is normal and what is affordable. We will wait for that 50 % correction before we ever buy. Only a fool would pay double price for a house.
@R.S.StravinskyTaxes, HOA, insurance, by the end of the year, is as much as principle, not worth it, a lot cheaper to rent.
@cynthiardh2004