LOCAL NEWS

Real estate investment firms buy up nearly 10% of King County’s residential homes in 2021

Jul 19, 2022, 2:39 PM | Updated: Jul 20, 2022, 12:25 pm

real estate power property taxes...

A residential home in Seattle's Wallingford neighborhood (brewbooks via Flickr)

(brewbooks via Flickr)

Real estate investment firms purchased 9.6% of residential homes in King County in 2021. Slightly higher percentages were recorded in Pierce and Snohomish Counties.

Those percentages follow a nationwide trend: with inflation rates rising — the Consumer Price Index recorded a 9.1% year-over-year price increase across all consumer items as of June — investors have looked to real estate acquisition to hedge against inflation, with residential rentals and their annually variable rental prices attractive to investment firms looking to get ahead of the curve.

Across the U.S., investment firms acquired 13.2% of residential homes in 2021, up from 11.8% in 2020. The tri-county area rests slightly below that national average. Independent analysis conducted by the National Association of Realtors (NAR) offers the idea that a relatively high number of households, a density of minority groups and Millennials, and a disproportionate percentage of renters are market conditions most compelling for “institutional buyers” of residential homes, defined as companies, corporations, or LLCs.

Mayoral veto of rent-reporting legislation tied to data privacy concerns, says real estate researcher

“A big portion of homes that otherwise will be sold to first-time homebuyers, institutional buyers purchase this home,” Nadia Evangelou, NAR’s senior economist, told MyNorthwest.

“We also see, for example, in areas with a higher market share of institutional buyers, they’re purchasing homes above the median price compared to all buyers, so they increase the home prices … they offer all cash. First-time homebuyers cannot compete with, for example, international buyers because first-time homebuyers … don’t have equity … They do not have this equity to make a downpayment … While rents are rising fast as well, this also means a downpayment is becoming more challenging for first-time homebuyers.”

All cash offers have obvious benefits for sellers, with institutional buyers also guaranteeing sales and waiving the inspection process, according to a NAR survey.

Seattle loses nearly 3,000 rental properties in less than a year

Institutional buyer shares are higher in areas with disproportionate numbers of renters: counties with renter shares closer to 30% recorded the highest percentages of investment acquisition. Of note, areas with relatively high numbers of institutional investments had roughly twice the number of black and minority households.

At the national level, 42% of properties sold to institutional investors were converted into rental properties, according to a NAR random sample of approximately 50,000 residential transactors. 45% were sold back or “flipped.”

More locally, a MyNorthwest analysis of King County real estate excise tax affidavits processed by the recorder’s office for June 1, 2022, through June 30, 2022, found that RedfinNow Borrower LLC acquired the most property of any buyer, purchasing 15 of the 5,630 properties recorded by the county for that month. The second most prolific buyer was the City of Seattle, purchasing 12 properties in June of 2022.

Local News

FILE - Employees walk through a lobby at Amazon's headquarters on Nov. 13, 2018, in Seattle. A grou...

Associated Press

Amazon workers upset over job cuts, return-to-office mandate stage walkout

SEATTLE (AP) — A group of Amazon workers upset about recent layoffs, a return-to-office mandate and the company’s environmental impact is planning a walkout at the company’s Seattle headquarters Wednesday. The lunchtime protest comes a week after Amazon’s annual shareholder meeting and a month after a policy took effect requiring workers to return to the […]

1 day ago

Amazon walkout...

Bill Kaczaraba

Seattle Amazon workers planning noon walkout Wednesday

Some Amazon workers at Seattle headquarters announced internally their plans to walkout next Wednesday, according to reports.

1 day ago

hurricane ridge day lodge...

Frank Sumrall

Hurricane Ridge closed indefinitely following Day Lodge fire

Olympic National Park’s Hurricane Ridge will be closed indefinitely after a fire in early May destroyed the Day Lodge.

1 day ago

Stranger Things Seattle...

Micki Gamez

Seattle ‘Stranger Things the Experience’ brings Netflix series to life

If you are a fan of the Netflix series Stranger Things, then you have to check out 'Stranger Things the Experience' in Seattle.

1 day ago

kayak westsuit bellevue robbery...

Frank Sumrall

Burglars equipped with kayaks, wetsuits, rob $20K from Bellevue home

Burglars equipped with kayaks and wetsuits, broke into a home in Bellevue along Lake Washington last Thursday, according to police.

1 day ago

medicaid coverage ending Washington...

KIRO Newsradio staff

Medicaid coverage ending for some in Washington state

Medicaid coverage is ending for some in Washington state as people must resume proving the financial need to continue their health insurance.

1 day ago

Sponsored Articles

Internet Washington...

Major Internet Upgrade and Expansion Planned This Year in Washington State

Comcast is investing $280 million this year to offer multi-gigabit Internet speeds to more than four million locations.

Compassion International...

Brock Huard and Friends Rally Around The Fight for First Campaign

Professional athletes are teaming up to prevent infant mortality and empower women at risk in communities facing severe poverty.

Emergency Preparedness...

Prepare for the next disaster at the Emergency Preparedness Conference

Being prepared before the next emergency arrives is key to preserving businesses and organizations of many kinds.

SHIBA volunteer...

Volunteer to help people understand their Medicare options!

If you’re retired or getting ready to retire and looking for new ways to stay active, becoming a SHIBA volunteer could be for you!

safety from crime...

As crime increases, our safety measures must too

It's easy to be accused of fearmongering regarding crime, but Seattle residents might have good reason to be concerned for their safety.

Comcast Ready for Business Fund...

Ilona Lohrey | President and CEO, GSBA

GSBA is closing the disparity gap with Ready for Business Fund

GSBA, Comcast, and other partners are working to address disparities in access to financial resources with the Ready for Business fund.

Real estate investment firms buy up nearly 10% of King County’s residential homes in 2021