Absentee owners—including secondary-home and investment property buyers—represent a rising share of home buyers in major cities, according to an NBC News analysis of data from ATTOM. According to the data, the share of homes sold to people in the market for properties that will not be their primary residence has increased since 2020 in 228 out of 307 ZIP codes across nine major metro areas, including Seattle, Charlotte and San Antonio. A recent report from Redfin indicated that, despite a record pullback in investor activity, investors purchased 17.8% of all homes sold in the fourth quarter of 2022.
Through December 2022, absentee sales in most areas remained higher than before the pandemic. With deep inventory shortages, experts say this has changed the rules of the game — propping up prices and keeping competition tight.
“[Absentee owners] have cash, they have knowledge, they’re not as concerned about what the home looks like if they’re not living in it,” said Tiffiney Graham, a realtor with Keller Williams River Cities in Columbus, Georgia.
Cash offers are typically a calling card of wealthy, seasoned buyers, experts say, often overlapping with investor and second-home buyer presence.
In each of the nine metro areas NBC News analyzed – Atlanta, Austin, Baltimore, Charlotte, Detroit, Miami, Phoenix, San Antonio and Seattle – a larger share of cash sales went to absentee owners. In San Antonio, 82% of absentee purchases have been made in cash since 2018, compared to 52% of owner-occupied sales.
Absentee buying increased in 40 out of 55 San Antonio ZIP codes with measurable buyer activity. Often, the greatest increases occurred in entry level-priced areas.
