A decade of migratory influence has changed in which investors in housing markets invest their money.
A new report from the analytics company CoreLogic compared the subways with the most investor activity in 2011 to the subways with the most investor activity in 2020.
The results show that while California dominated the rankings at the start of the last decade, it was nowhere on the 2020 list.
In 2011, seven Californian subways were in the top 10: Los Angeles, San Jose, San Diego, San Francisco, Sacramento, Oxnard, Stockton and Riverside.
“This reflects the nature of the market in the aftermath of the Great Recession. California has been hit hard and as a result has seen many foreclosures and sales of real estate owned by financial institutions, ”the report said.
The list also included the Las Vegas metropolitan area in Nevada and the Corpus Christi and McAllen metropolitan areas in Texas.
But in the top 10 of 2020, Corpus Christi was the only metro to reappear. According to CoreLogic, the other nine subways on the list included Boise, Idaho; Kansas City, Missouri; Atlanta; Memphis, Tennessee; Salt Lake City; Wichita, Kansas; Provo, Utah; Phoenix; and Springfield, Missouri.
The drastic shift in investor interest in 2020 was likely due to low prices and a growing number of potential homeowners keen to shy away from high California prices.
“Cities in the Mountain West, Western Midwest and South led investment activity by 2020, and investment increased in metropolitan areas like Boise, Phoenix and Salt Lake City as they tend to have lower prices and a growing population fueled by emigration. in California, ”according to the report.
While investing activity has picked up in places like the Midwest, nationally it has declined. According to the report, since 2018, investor activity in the United States has slowed. In 2020, 15.5% of home purchases in the United States came from investors, up from 16.3% in 2019 and 16.8% in 2018.
But despite the decline, CoreLogic has found that investors have maintained a healthy presence in the housing market with a growing number of mom-and-pop investors grabbing a slice of the pie. As the market continues to cool and prices fall from record levels, CoreLogic predicts that investor activity, nationally, may actually increase.
“At this critical juncture – the first year of the new decade and continually moving away from the pandemic – when the hot housing market cools down, we might see investor activity spike as they try to buy more. lower priced properties, ”Molly Boesel, senior economist at CoreLogic, was quoted in the report’s press release.
Send an email to Libertina Brandt