Story perspectives

Investor Surge Drives Home Prices, Squeezes First-Time Buyers

11/27/2025

Summary

Story summary

In the first half of 2025, U.S. real estate investors accounted for 29% to 32% of home sales.
Analysts project investor shares to stay above 25% through 2027.
Non-qualified mortgage (Non-QM) originations have surged, reflecting a shift toward rental cash flows.
Affordability pressures crowd out first-time buyers as investor activity raises prices.
Serious delinquencies in Non-QM loans have increased, signaling risks if unemployment rises or prices stagnate.

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Story summary

In the first half of 2025, U.S. real estate investors accounted for 29% to 32% of home sales.
Analysts project investor shares to stay above 25% through 2027.
Non-qualified mortgage (Non-QM) originations have surged, reflecting a shift toward rental cash flows.
Affordability pressures crowd out first-time buyers as investor activity raises prices.
Serious delinquencies in Non-QM loans have increased, signaling risks if unemployment rises or prices stagnate.