Big investors have big impact on home market
Boston Condos for Sale and Apartments for Rent
Big investors have big impact on home market
Thousands of Boston homes now under Harbor Group ownership
Harbor Group International is under contract to acquire five 1970s-era multifamily properties in Greater Boston for $740 million. The assets total over 2,700 units of housing. Prior to the purchase, HGI held 978 units in the area.
As of July 2025, the acquired portfolio was over 95% occupied.
“The addition of these communities will deepen HGI’s presence within the Boston area, a market exhibiting robust multifamily fundamentals where we already have a strong operating footprint,” Yisroel Berg, chief investment officer of multifamily for HGI, said in a press release. “With limited new supply in the surrounding areas of each property, we will be well-positioned to leverage our local market knowledge to maintain stable occupancy levels and implement targeted renovations that enhance the resident experience.”
Big investors have big impact on home market
A recent report found 27% of all US homes sold in Q1 2025 were purchased by investors – the highest share in at least five years. That number was 18.5% between 2020 and 2023.
However, the number of homes bought is only a 1.2% increase YoY, showing that investors aren’t necessarily buying more homes this year, but there are less traditional buyers in the market and fewer sales overall.
Mom-and-pops investors
What’s even more interesting is the vast majority of these investors (85%) are mom-and-pops, owning only 1-5 properties! Meanwhile, big investors shows a massive retreat as they sold 76% more properties than they purchased in Q1.
It seems both traditional homebuyers and the large institutional investors are slowing down and these smaller investors are taking advantage of it. After many years of bidding wars and rising prices, it seems now is a better time to purchase an investment property, especially if you’re looking to get a good deal and have the resources to put some work into the home.
Takeaway: Boston real estate isn’t overrun by investors quite yet, but if you’re thinking of buying an investment property out of state where it’s more affordable, you’re not alone.
Boston Condos for Sale and Apartments for Rent
Love thy neighbor
Big investors have big impact on home market
It seems the trend of big investors buying single-family homes – and then renting them out, a relatively new market phenomenon that we highlighted a few days ago – is suppressing home-sale prices elsewhere in the country.
This is a very curious national trend, though it’s unclear if it’s impacting Massachusetts. It appears the big investors, such as Blackstone, are focusing on basket-case housing markets out west and in the south, rather than focusing on the stronger Northeast markets.
It’s worth keeping an eye on. If anyone hears of a major private-equity investor snapping up single-family home in these parts, drop us a line.
File under: Interesting.
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Updated: January 2025