Real Estate Investing is Fueling the Hot Market?

The conversation around today’s housing market often drifts to one lightning-rod question: are investors the spark behind the heat? In this episode of Selling Greenville, the host dissects new nationwide data from CoreLogic (released July 2022) to separate noise from signal. The focus isn’t on villainizing or valorizing investors—it’s on what the numbers say about who’s buying, where, and why that matters for everyday buyers and sellers in and around Greenville, SC.

Real Estate Investing is Fueling the Hot Market

CoreLogic’s first-quarter 2022 report provides a clean vantage point. While the data is national (Greenville doesn’t always appear in these larger MSA rollups), the trends line up with what many locals feel in real time: real estate investing fueling the hot market isn’t an abstract headline; it’s a measurable force.

Below are five grounded takeaways drawn directly from the report—and what they imply for Greenville and the Southeast.

1) Investor share surged—and didn’t just drift back to “normal.”

Investor purchases didn’t merely rise; they took off. The share of U.S. home purchases made by investors began climbing steeply in Q1 of 2021. By late 2021, it sat near 27%, briefly dipped to roughly 22%, then popped right back into the high 20s at the start of 2022—peaking near 28% in February and holding around 27.9% in March.

Two interpretations sit on the table:

• Seasonal rhythm, new altitude. If the usual winter lull/spring surge pattern is at play, the “new normal” spring surge may now be at a noticeably higher elevation—mid- to high-20% investor share versus the 14–18% band common pre-2021.

• A rate-fear dash. Alternatively, the Q1 spike could reflect a front-loaded rush as investors moved quickly before financing costs climbed.

Either way, the key point remains: investor share has been materially higher since early 2021, and Q1 2022 didn’t reverse that. For Greenville’s on-the-ground reality, that aligns with a steady stream of investor interest from both newcomers and seasoned buyers, adding to their portfolios.

2) Owner-occupants resemble 2019; the “extra heat” is largely investors

Here’s the counterintuitive heart of the report: owner-occupied purchases are hovering near pre-pandemic levels. In other words, regular buyers haven’t been stampeding well beyond historic norms. Does the “hotter than 2019” feel like what many markets still project? That’s where real estate investing, fueling the hot market, shows up most clearly. Investor activity is the delta.

The practical meaning:

• If investor sentiment cools, overall market pressure likely eases.

• If investor share persists at today’s levels, expect tight conditions to linger even if owner-occupant demand looks like 2019 on paper.

For Greenville shoppers, that explains the split reality: in some price bands and neighborhoods, competition feels ferocious; in others, it’s more manageable. Where investor math pencils best, the intensity rises.

3) Who are “the investors”? Mostly small and midsize—though mega players are growing

It’s easy to picture “investors” as a handful of faceless institutions. The data is more nuanced:

• Small investors (fewer than 10 properties): 48% of investor purchases

• Midsize (11–100 properties): 31%

• Large (101–1,000 properties): 9%

• Mega (1,000+ properties): 12%

Translation: nearly four out of five investor buys come from small and midsize players. That tracks with what’s often seen locally—individuals and small partnerships purchasing rentals or adding a property or two.

That said, the mega cohort is expanding its share. Over the last year and change, those 1,000-plus-property buyers have stepped up activity more sharply than “merely large” firms. While still a minority of the pie, their growth helps explain why some metros feel a sudden wave of deep-pocketed competition.

4) Fewer flips, more rentals: investors are holding longer

CoreLogic also looked at how many investor purchases were flipped within six months. From January 2019 through much of 2021, the share that quickly resold usually hovered around 15–18%. In 2021, that rate dipped below 15%, a historically low level across most of the year.

That signals a notable strategic shift: more investors are buying to hold rather than buying to flip.

Why it matters:

• Inventory stays tighter for longer. A flip typically re-releases a home to the market within months. A hold removes that home for years.

• Rents and inflation anxieties. With inflation top-of-mind and rents rising, many see housing as a steadier store of value than idle cash, making long-term rentals more compelling.

• Inspection realities. In a tight labor and materials market, quick-turn flips face higher risk and thinner margins. A hold can smooth those edges.

This hold-bias helps explain why, even as financing costs rise, for-sale supply hasn’t ballooned the way casual observers might expect.

5) The Southeast and Southwest are investor magnets—and Greenville sits between two of the hottest MSAs

The report’s top investor-share MSAs in Q1 2022 leaned heavily toward the Sun Belt: Atlanta, San Jose, Los Angeles, Memphis, Las Vegas, Phoenix, San Antonio, El Paso, Dallas–Fort Worth, Charlotte, and San Diego.

Standouts for Greenville watchers:

• Atlanta exceeded 40% investor share—astonishingly, over two in five purchases.

• Charlotte came in just under 35%, still more than one in three.

Greenville doesn’t always show up in national MSA rankings, but sitting between two of the hottest investor markets is telling. It’s reasonable to infer the Upstate is seeing a comparable pull, especially in suburbs and price points that pencil well for long-term rentals.

What this means for buyers and sellers right now

• Buyers: Expect asymmetry. In pockets that pencil for rentals, multiple-offer scenarios persist—especially at price points where cash is common. In other pockets, especially those less ideal for rentals, pace can feel closer to 2019. Knowing which is which is half the battle.

• Sellers: Pricing discipline matters. Where investors are thick, a clean presentation and competitive pricing can draw a wide net of offers (including cash). Where investor math is thinner, expectation-setting is key; the market can still be strong, but timelines may resemble pre-pandemic norms.

• Everyone: Keep an eye on the investor share. It’s a primary pressure valve. If investor activity drifts back toward the teens, that should translate to less frenetic bidding. If it stays near 25–30%, headwinds for buyers remain.

Why the “Greenville lens” still matters with national data

The episode makes a careful distinction: these numbers are national, and Greenville’s MLS-level data often lands faster than national reports. Still, the patterns line up with countless local conversations: seasoned investors doubling down, first-timers entering, and a strong tilt toward buying and holding instead of flipping for a quick exit. When two neighboring MSAs—Atlanta and Charlotte—rank among the nation’s top investor shares, it would be surprising if the Upstate weren’t feeling echoes.

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Bottom Line

CoreLogic’s fresh look at Q1 2022 clarifies the driver behind much of today’s heat: real estate investing fueling the hot market. Owner-occupant activity resembles 2019; the “extra” competition largely comes from investors—predominantly small and midsize buyers, with mega players expanding. At the same time, the flip-to-rent tilt means more homes are being removed from resale circulation for longer stretches, limiting near-term relief on the for-sale side.

For Greenville, wedged between investor-hungry Atlanta and Charlotte, the implication is straightforward: expect continued competition where rental math shines and a more familiar pace where it doesn’t. The variable to watch through the rest of the year is investor share. If it recedes, pressure eases. If it persists near 25–30%, the Upstate’s market will likely stay warm—even as rates try to cool it.

Ien Araneta

Journal & Podcast Editor | Selling Greenville