Why Housing Feels Out of Reach (And It’s Not Just the Prices)

If you’ve been online lately, you’ve probably seen plenty of discussion about what’s driving high home prices. A national survey shows that many Americans believe large investors are the main cause.

Despite evidence showing otherwise, nearly half of Americans surveyed (48%) think investors are the leading factor behind rising housing costs (see graph below).

However, the data tells a different story.

The Reality Behind Investor Activity

Investors do influence the housing market, particularly in select regions. However, they’re not dominating home purchases the way social media narratives suggest.

According to Realtor.com, large investors — defined as those owning more than 50 properties — accounted for just 2.8% of all U.S. home purchases last year. That means nearly 97% of homes changed hands between typical buyers and sellers.

Danielle Hale, Chief Economist at Realtor.com, notes:

“While investors hold noticeable shares in specific neighborhoods, their overall impact on the national housing market remains relatively limited.”

If investors aren’t to blame, what’s actually behind today’s high home prices?

The Real Driver Behind Home Prices

The current rise in home prices has less to do with investor activity and more to do with fundamental supply issues.

Robert Dietz, Chief Economist at the National Association of Home Builders (NAHB), noted:

“Blaming investors might be popular, but the economics don’t support it. The core issue is a lack of housing supply — a clear mismatch between the number of households and the available homes.”

Put simply, demand continues to outpace supply, and that persistent shortage is what’s keeping prices elevated nationwide.

Bottom Line

It’s an easy assumption to make — that investors are the reason behind today’s housing struggles. Yet the reality is far more structural: the nation simply needs more homes. Encouragingly, new construction and listings are slowly rising, signaling that progress is underway.

As more inventory becomes available, buying could start to feel more achievable again, especially for those who’ve been sitting on the sidelines.

For insights tailored to your local area, reach out to a knowledgeable real estate agent who can help you understand current trends, upcoming opportunities, and what they mean for your next move.