Bulls vs. Bears: What is the net impact in investor activity across Wall Street’s favorite housing markets?
We focused on the US national picture at Parcl Labs 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.
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