Investors Are Controlling the Housing Market (Not How You Think)

On The Market

BiggerPockets

Investing, News, Education, Business

4.8 • 858 Ratings

🗓️ 4 September 2025

⏱️ 44 minutes

🔗️ Recording | iTunes | RSS

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Summary

Are you worried that real estate investors are skewing the housing market? In this episode of On the Market, host Dave Meyer and guest expert Rick Sharga dive into the complexities behind investor activities in the housing realm. Discover how investor behavior has shaped the current market landscape, influencing housing prices and inventory. Contrary to some beliefs, small investors play a critical role by fueling market liquidity rather than causing housing prices to spike. Listen in as they unravel how mortgage rates, housing market forecasts, and affordability trends will unfold over the next couple of years. As we tread through this transitional period, the housing market could remain lukewarm for a while longer. Are we on the verge of a 'great stall' or just a balanced market correction? Tune in to find out! Links from the Show Join the Future of Real Estate Investing with Fundrise Join BiggerPockets for FREE Find an Investor-Friendly Agent in Your Area Find Investor-Friendly Lenders Property Manager Finder Dave's BiggerPockets Profile Check out more resources from this show on ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠BiggerPockets.com⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ and ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠https://www.biggerpockets.com/blog/on-the-market-353⁠ Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠advertise@biggerpockets.com⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	You may be hearing that investors are swinging the entire real estate market and not for the better.
0:06.1	But the data is actually a lot more nuance.
0:09.8	Investors play a significant role in the market, but a new report indicates that it's far more complex than these headlines
0:16.5	about hedge funds buying up would-be affordable homes led on.
0:20.5	Let's dig in to what's really going on.
0:27.9	Hey everyone, I'm Dave Meyer, and this is on the market.
0:31.2	Our guest today is Rick Sharga.
0:33.2	Rick is the founder and CEO of C.J. Patrick Company, a market intelligence firm for companies
0:38.7	in the real estate industry. Rick is a super sharp observer of everything that's happening
0:43.4	in the housing market, so I'm going to ask his opinions on what role investors play in the
0:49.4	market, what's happening with inventory and mortgage rates, and how these trends might develop
0:53.9	moving into next year. Let's welcome Rick back to the show. Hey, Rick, welcome back to On the Market. It's great to see again. Always a pleasure to be with you. I think you might be our most frequented guest of all time on On the Market. So thank you for always being here. It's always a pleasure to have you. Well, the reason we always have you is of a great perspective on the housing market. So let's just start big picture.
1:14.1	Like we're sitting here in August 2025. Feels like the market's transitioning. There's all sorts
1:20.3	of strange stuff. What's your big picture view? Well, you know, Dave, we've had this conversation
1:25.8	over the last couple of years, and when
1:27.8	mortgage rates doubled back in 2022, a lot of people were predicting that we'd see home prices
1:33.1	crash, 20, 30 percent declines. And we talked back then about the more likely scenario being that
1:39.6	we'd see a market take three to five years to kind of transition into a market that could handle these
1:46.2	higher mortgage rates and higher home prices. And it really feels to me like we're in year three
1:52.5	of a five-year transition period. Slow home sales. Price appreciation is slowed down to a crawl,
1:58.1	actually gone negative in some markets. And I really feel like we're
2:02.2	going to be seeing another probably 12, 18, maybe 24 months of this kind of just slow, lackluster,
	...

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