Investors snatch up real estate in King, Pierce and Snohomish leaving first-time homebuyers behind

Jul 26, 2022, 11:58 AM | Updated: 1:03 pm


Redfin real estate yard sign is pictured in front of a house for sale on October 31, 2017 in Seattle, Washington (Getty Images)

(Getty Images)

Private investment groups bought up nearly 10% of King County’s residential homes listed on the market in 2021, so what does that mean for local families looking to purchase their first home?

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

Looking at the raw numbers, Washington state documented 107,354 property transactions in 2021, according to the Northwest Multiple Listing Service which records real estate sales in 26 counties across the state.

That means 10,300 Washington state properties effectively were sold to private investment firms, homes that could otherwise be sold to first-time home buyers.

“It’s pushing people out of the market making homes more or less unaffordable. It’s a problem,” Chris Davies, host of Street Talk Financial, told KTTH’s Jason Rantz.

As the year-over-year inflation rate approaches 10% — an increase that the U.S. has not seen since the 1980s — and as federal interest rates remain relatively low, private equity groups look to buy up real estate to hedge against those market pressures. Rental fees associated with those properties can be increased annually, allowing those investment firms to keep pace with the inflation rate.

“One of the best hedges against inflation is to buy real estate … over the past year, year and a half, you’re looking at 20 to 30% rent price increases across the board, depending on the metro area … The goal is obviously to invest in this and make it profitable. And as a result, rents go up. So again, the people on the lower end are getting priced out.”

Listen to the Jason Rantz Show weekday afternoons from 3 – 6 p.m. on KTTH 770 AM (or HD Radio 97.3 FM HD-Channel 3). Subscribe to the podcast here.

Jason Rantz on AM 770 KTTH
  • listen to jason rantzTune in to AM 770 KTTH weekdays at 3-7pm toThe Jason Rantz Show.

Jason Rantz Show


seattle sucker punched...

Jason Rantz

Rantz: Man ‘sucker punched’ in downtown Seattle as crime plagues city

A man was "sucker punched" in an unprovoked attack in downtown Seattle over the Memorial Day weekend, according to police.

1 day ago

Seattle police...

Jason Rantz

Rantz: Many Seattle city council candidates won’t support police, drug laws

An alarming number of Seattle City Council candidates do not support fully staffing or funding the police department. And nearly a third of the candidates want the police to ignore drug laws.

2 days ago

Bob Ferguson Governor Google data privacy lawsuit...

Jason Rantz

Rantz: Progressives shred Bob Ferguson for Governor endorsement

The Bob Ferguson for Governor campaign is off to a rocky start, already alienating Seattle activists after bragging about a police chief's endorsement.

3 days ago

Echo Glen...

KTTH staff

Rantz: 4 remaining Echo Glen inmates have been captured

The King County Sheriff's Office (KCSO) said the four remaining inmates from the Echo Glen juvenile facility have been captured.

3 days ago

freedom series homelessness...

KTTH staff

KTTH Freedom Series: WA still suffering from crime, homelessness

Local leaders and officials joined the KTTH Freedom Series to discuss solutions to the region's crime and homelessness crisis.

5 days ago

ktth freedom series crime crisis...

KTTH staff

KTTH Freedom Series: State policies created WA crime crisis

Jason Rantz was joined by politicians and authorities to discuss how policy has affected the crime crisis during the KTTH Freedom Series.

5 days 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.

Investors snatch up real estate in King, Pierce and Snohomish leaving first-time homebuyers behind