Real estate investors bought 26.1 percent of low-priced U.S. homes that sold in the fourth quarter, according to Redfin. It’s the highest share on record and is up from 24 percent a year earlier. By comparison, investors purchased 13.6 percent of mid-priced homes that sold (compared to 14.3 percent a year earlier) and 15.9 percent of high-priced homes that sold (compared to15.4 percent a year earlier).
Investors are drawn to affordable homes for the same reason as other homebuyers: They cost less, which is especially attractive when home prices and borrowing costs remain elevated. And when housing affordability is this strained, there could be more potential for value increases in the lower-price tier, meaning more potential for building equity.
For its analysis, Redfin determined the three price tiers by dividing home purchases into three buckets: low-priced, mid-priced and high-priced. Low-priced homes are those that fall into the bottom tercile of local sale price
