🤨 Key Statistics on Investor Distrust in Real Estate
- One-third of home sellers (32%) consider real estate investors untrustworthy.
- Specifically, 60% of Americans say cash-buying companies are untrustworthy, and 51% say iBuyers are untrustworthy.
- Nearly three-fourths of Americans (73%) say real estate investors are responsible for the lack of affordable housing in the U.S.
- Roughly 79% of Americans support regulating the housing market to prevent home prices from climbing even higher.
- If they could change one thing about the housing market, 1 in 8 Americans (12%) say they would implement stricter regulations on investors and corporations buying homes, behind only lowering home prices and lowering mortgage rates.
- 38% of recent home sellers believe selling to a cash-buying company is the worst way to sell.
- 59% of Americans go so far as to say cash-buying companies are scams.
- Nearly 1 in 3 sellers (31%) who sold to an iBuyer say they had a bad experience, while about 1 in 4 (23%) say the same about cash-buying companies.
- Of those who sold to an iBuyer, 25% regret it, while 27% say the same about selling to a cash-buying company.
- 44% of Americans would not knowingly sell to a real estate investor — up from 38% in 2024.
President Donald Trump said he plans to ban large real estate investors from buying single-family homes in an effort to make housing more affordable for Americans.
The announcement comes as 54% of Americans oppose the administration's handling of the real estate market and capitalizes on widespread distrust of real estate investors to boost approval ratings.
Nearly 1 in 3 recent home sellers (32%) say they don't trust real estate investors, such as private equity firms, cash-buying companies, and iBuyers. Cash-buying companies and iBuyers are of particular concern, with 60% and 51% of Americans saying they are untrustworthy, respectively.
The distrust appears rooted in concerns about affordability, with 73% of Americans saying real estate investors are responsible for the lack of affordable housing as they reduce supply for other buyers — driving up prices in the process.
Although distrust is prevalent among all generations, it is especially acute among the youngest buyers who lack the financial resources to compete with deep-pocketed investors.
Nearly two-thirds of investors (62%) say they primarily target starter homes — the most attainable options for young, new buyers with limited budgets. It's no surprise, then, that more than 1 in 10 Gen Z home buyers (11%) say real estate investors are most responsible for the affordable housing crisis.
With investors free to purchase homes unchecked, many Americans say intervention is needed. Roughly 79% of Americans support regulating the housing market to prevent home prices from climbing even higher.
If they could change one thing about the market, 1 in 8 Americans (12%) say they would implement stricter regulations on investors and corporations buying homes — making it the third most common answer choice behind lowering home prices (35%) and lowering mortgage rates (25%).
Wide support for stricter regulations not only stems from broad public concerns about investor behavior in the real estate market but also from homeowners who have personally had negative experiences selling to investors.
Nearly 1 in 3 recent sellers (31%) who sold to an iBuyer say they had a bad experience, while 1 in 4 (23%) say the same about cash-buying companies.
Although these tech-enabled investor platforms provide sellers with quick cash offers for homes in less-than-ideal condition, the offers are often well below market value and riddled with high, unexpected fees that feel unfair to sellers.
In fact, 59% of Americans go so far as to say cash-buying companies are scams, with 38% calling them the worst way to sell a home. iBuyers face less criticism, but 15% still say they are the single worst option for sellers.
With the outcome of their sale falling short of their expectations, 1 in 4 homeowners who sold to a cash-buying company (27%) or iBuyer (25%) say they regret it.
Such experiences contribute to the perception that real estate investors exploit Americans seeking a quick, profitable sale — prompting many homeowners to avoid them altogether.
Roughly 44% of Americans would not knowingly sell to a real estate investor — up from 38% in 2024.
About Clever Offers
Clever Offers is a platform that empowers sellers who need to sell quickly or for cash to compare their options and make informed decisions. Clever Offers' free service connects sellers with vetted cash buyers and top local realtors, allowing them to evaluate traditional cash offers alongside options such as cash offers with a second payment upon resale, listing on the MLS for as little as seven days, and standard open-market listings.
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FAQs
Do Americans trust real estate investors?
Nearly 1 in 3 recent home sellers (32%) consider real estate investors untrustworthy, with 60% of Americans specifically calling out cash-buying companies and 51% calling out iBuyers.
Do Americans blame real estate investors for high home prices?
About 73% of Americans — including 75% of boomers, 72% of Gen X, and 65% of millennials — say real estate investors are responsible for the lack of affordable housing in the U.S.
Are Americans becoming more reluctant to sell to investors?
Roughly 44% of Americans would not knowingly sell to a real estate investor — up from 38% in 2024.