Image by: Flo Pappert.
One in five homes resold by iBuyers Zillow, Opendoor and Offerpad in 2021 ended up being flipped to institutional investors and other private entities, "a secret pipeline" with the potential to exacerbate inventory shortages in markets where iBuyers are active, according to a Bloomberg analysis. Bloomberg's analysis of 100,000 property records compiled by Attom Data Solutions found that iBuyers were 60 percent more likely to flip homes to investors in predominantly non-white areas, with thousands of homes sold to landlords backed by KKR & Co., Cerberus Capital Management, Blackstone Inc., and other private ventures. "These companies go around saying, 'We're going to help mom and pop and inject liquidity into the market,'" Inman contributor Mike DelPrete told Bloomberg. "They don't say, 'We're going to suck up houses from the ordinary market and sell them to Wall Street.' "