Report Finds Local Real Estate Investors on the Verge of Outperforming Builders

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Jul 30, 2024, 09:00 ET

Across the 42 markets New Western operates, there were 185,272 new builds in 2023 compared to 163,894 home flips. Vacant or uninhabitable flipped homes contribute new inventory comparable to new construction.
Within these markets, investors are delivering homes back to the market 21% below the average sales price.
19% of female investors anticipate 50% growth, compared to 13% of male investors.

DALLAS, July 30, 2024 /PRNewswire/ -- New Western, the largest national real estate investment marketplace, today announced its latest report on local market data and investor sentiment from a survey of 1,300 independent investors focused on single-family real estate across the United States. 91% of investors surveyed expect their businesses to grow despite market conditions and 80% plan to flip one to five homes throughout 2024.

During 2023, 68,000 new investors looking for properties to rehab were added to the New Western marketplace with the majority doing business within 30 miles of their home. In 2023, Boston experienced 4,347 flipped homes sold versus 3,166 new homes sold by builders with 115,866 vacant homes available for remodeling. Boston flips were sold at 7.8% below the median sales price showcasing that local investors are returning much needed inventory to market and at cheaper prices with plenty of vacant homes to continue the activity. Indianapolis showed 4,700 flipped homes sold in 2023, 4,074 new builds sold with 65,393 vacant homes and flip prices 6% below the median sales price. Further, Denver experienced 4,759 home flips sold, 4,296 new builds sold, 67,209 vacant homes and flip prices 2.2% below the median sales price.

"We're helping Americans achieve financial freedom and address the housing and affordability crisis," said Kurt Carlton, president and co-founder at New Western. "This 'Great Renovation' shows that builders and the government alone can't fix our housing infrastructure issues. Everyday local small businesses are making a real difference by flipping homes. With a shortfall of 4.5 million homes and millions of vacant and aging homes ready for renovation, these investors are just getting started in meeting community needs."

A majority of female investors report being in business for less than three years compared to a majority of men for over three years. Male investors usually allocate between $50,000 and $200,000 for rehab budgets, while female investors often spend less. Despite this, female investors achieve higher sales prices and quicker sales, highlighting their investment skills and market savvy.

Market sentiment from additional experts:

"The last leg in the inflation fight is to reduce shelter inflation, and this can only occur if builders are able to construct more attainable, affordable housing. Local investors are also a part of the housing ecosystem to work towards finding an equilibrium between supply and demand. As we enter the second half of 2024, higher costs and rates remain obstacles." – Robert Dietz, chief economist and senior vice president for economics and housing policy for NAHB.
"As a female real estate investor, I put myself in the mind of the female buyer, often the decision maker, and renovate homes to suit her lifestyle. Women bring a unique perspective to real estate investing, often focusing on creating value through attention to detail and fostering strong relationships with buyers and contractors." – N'Marie C., Phoenix investor

The survey and report, titled "The Flip Side: Residential Real Estate Investing Trends Mid-Year 2024," is an analysis from insight based on opinion polling from April to May 2024 from 1,300 real estate investors ages 18+ who have previously purchased property through New Western or plan to in the future. In conjunction, the local market data was gathered based on New Western's 2023 and 2024 transactions. New construction data from 2023 is from Zillow and vacant home data is from the U.S. Census.

For more information about New Western, please visit https://www.newwestern.com/.

About New Western
New Western is a real estate investment marketplace that creates opportunity. We make investing more accessible for over 200,000 investors looking for rehabs inside the largest source of value-add properties in the nation. We buy and sell a home every 13 minutes in most major cities. New Western creates an advantage for all—a fresh start for sellers, exclusive properties for investors, and new, affordable inventory for the housing market.

CONTACT: [email protected]

SOURCE New Western