Higher home prices cool investor activity
Jun 6, 2013, 9:24 AM | Updated: Mar 4, 2016, 5:52 am
The recent rise in home prices has more investors concerned that it will be increasingly difficult to turn a profit from their rental investments.
Nearly half of U.S. real estate investors say they expect to purchase fewer rental homes in the next year, according to a recent survey conducted by polling firm ORC International.
Just 10 months ago, the percentage of investors who said they intend to buy fewer homes stood at 30 percent-compared to 48 percent today. Only about 20 percent of the investors surveyed say they plan to buy more homes in the next year-a drop from the 39 percent who reported they intend to buy more homes last August.
More than half of the investors surveyed who own rental properties say they plan to hold them for at least five years or more, and 33 percent plan to hold them for 10 years or more.
