There are lots of reasons we aren’t getting the great deals in Austin. I came across an article in my favorite local newspaper, the Community Impact.* this month that explained a lot of what’s going on, and why it’s becoming hard to find affordable homes for both families and small-scale renovators. Here’s the gist, according to Emma Freer, who wrote the report:
In the six Central Austin ZIP codes for which data is available, 11.55%—on average—of homes were purchased by investors in 2018, nearly double the rate of the Austin-Round Rock metro.
The class of buyers that is competing with smaller investors like us is called “institutional investors,” and that means companies that own portfolios of more than 2,000 houses. Who are they? Well, we know of some of them, such as Memphis Invests and other companies FortuneBuilders work with.