iBuyer Market Statistics [2024]: Market Share & Growth

Last Updated: October 12, 2022

Highlights. iBuyer market statistics reflect a volatile moment in the industry; market share dropped from 1.7% to 1.3% from Q4 of 2021 to Q1 of 2022. That drop indicates that some companies may have over-purchased and overpaid.

Direct-buyer companies or iBuyers control up to 1.3% of the national metropolitan real estate market.
iBuyers offered an average 86% of market value for homes in the first quarter of 2022.
The median iBuyer purchase price is $347,000.
Up to 20% of iBuyer sales are purchased by a growing number of institutional investors, such as rental companies.

iBuyer Home Purchase Rates by Fiscal Quarter
Quarter	Rate of Home Purchase*	YoY Change
2022 Q1	1.3%	-23%
2021 Q4	1.7%	-11%
2021 Q3	1.9%	+90%
2021 Q2	1.0%	-90%
2021 Q1	1.9%	-26%
2020 Q4	1.8%	-55%
2020 Q3	0.7%	-85%
2020 Q2	0.4%	-89%
2020 Q1	2.6%	-7.3%
2019 Q4	4.0%	+4.3%
2019 Q3	5.0%	+72%
2019 Q2	3.7%	+92%
2019 Q1	2.8%	+129%

*The number of houses purchased by iBuyers expressed as a percentage of all homes sold in that quarter nationwide; rate of purchase does not necessarily reflect market share.

National iBuyer Market Statistics

iBuyer market performance appears to have declined in the latter months of 2021 though financial specialists suggest the iBuyer business model may still be profitable.

iBuyers’ median purchase price is 24% lower than the nationwide median home price of $375,639.
iBuyer home purchases were down 42% year-over-year (YoY) from 2021’s fourth quarter (2021 Q4) to 2022’s first quarter (2022 Q1).
iBuyer market share declined by an estimated 24% in 2022 Q1.
Realtors report that 2% of homes they sold from May to July 2021 were purchased by iBuyers.
Real estate agents receive an average 2.28% commission when they sell to an iBuyer.
Up to 87% of home buyers still use a real estate agent.

Number of iBuyer Home Purchases by Fiscal Quarter
Quarter	Homes Purchased	YoY Change
2021 Q1	12,652	-42%
2021 Q4	21,845	-20%
2021 Q3	27,244	+82%
2021 Q2	15,000	+242%
2021 Q1	4,383	-6.1%
2020 Q4	3,634	-41%
2020 Q3	1,798	-78%
2020 Q2	825	-88%
2020 Q1	4,667	-3.6%
2019 Q4	6,718	+28%
2019 Q3	8,130	+99%
2019 Q2	6,789	+100%
2019 Q1	4,842	+137%

Regional iBuyer Market Statistics

iBuyers are most active in southern states in the U.S. Phoenix, home to Opendoor and Offerpad, continues to see significant activity in the iBuyer market.

North Carolina had the top 3 iBuyer markets in 2021 Q1, with market shares averaging 2.7%.
Raleigh, North Carolina, had the largest market share in 2021 Q1, with 2.9% of home sales going to iBuyers.
In Tuscon, Arizona, iBuyers purchased up to 6.1% of homes sold, the highest market share; Atlanta had the highest number of transactions with 1,628.
In some markets, iBuyers take 13 days to sell an average home.

Top 10 iBuyer Markets
Metro Area	Market Share 2022 Q1	Market Share 2021 Q4
Atlanta, GA	6.0%	9.6%
Phoenix, AZ	5.2%	8.8%
Dallas-Fort Worth, TX	5.1%	5.8%
Houston, TX	3.5%	4.4%
Charlotte, NC	5.6%	8.5%
Tampa, FL	3.3%	5.3%
Orlando, FL	4.0%	6.6%
Jacksonville, FL	5.4%	8.9%
San Antonio, TX	5.7%	6.1%
Las Vegas, NV	4.0%	7.1%

iBuyer Company Statistics

iBuyer companies use algorithms to evaluate homes for purchase and calculate their market value. After a free home inspection, many companies will make an offer within 48 hours.

The unofficial industry-wide standard service fee is around 5%.
Major iBuyer companies posted net losses in 2022 Q1 because U.S. home sales fell 21% quarter over quarter.
Opendoor sold more homes than Zillow and Offerpad from 2019 to 2022 Q2.
Zillow Offers reported significant losses in 2019, 2020, and 2021.

“We’re being very aggressive when it comes to buying homes right now — it’s all gas, no brakes.” Myron Curry, Senior Investment Specialist at RedfinNow

Opendoor

Opendoor is one of the most well-established iBuyer companies with locations in over 51 major cities.

Opendoor charges anywhere from a 5% to 14% service fee.
Buyers’ agents can get a 1% commission.
Opendoor had direct selling costs of more than $195 million in sales, marketing, and operations in 2020, up 109% YoY.
Typically buys homes between $100,000 and $600,000 (but has gone as high as $1.4 million).
Purchases single family homes or townhomes.
In some markets, Opendoor will purchase duplexes or condominiums.
No prefabricated or mobile homes.
Opendoor will not purchase homes in a flood zone
In general, homes must be built after 1930 with a maximum lot size of 1 to 2 acres according to the service area.
Opendoor sold more than 14,000 homes in Q2 2022.

Offerpad

Offerpad became a publicly traded business in September 2021 with a $2.7 billion valuation.

Available in 31 major metropolitan markets across 16 states.
Service fees range between 6% and 8%, depending on the local market.
Buyers’ agents can get a 3% commission.
Offerpad purchases single-family homes, townhomes, and condominiums.
No prefabricated or mobile homes.
Offerpad will not purchase homes valued at more than $1 million.
Homes must be built after 1960 with a maximum lot size of 1 acre.

RedfinNow

Redfin is one of the top brokerage sites nationwide; its iBuyer service is RedfinNow.

Available in 15 states and Washington, D.C., with plans to expand.
RedfinNow charges service fees ranging from 5% to 13% based on the property’s condition.
Offers are valid for 5 days.
Sellers may select a closing date between 10 and 45 days after RedfinNow’s final offer.
RedfinNow does not purchase homes in age-restricted communities.
The maximum lot size is 0.5 acres.
No manufactured or mobile homes.

iBuyer Homes Purchase Requirements
What iBuyers Want	What iBuyers Don’t Want
Ready-to-market with no repairs or renovations needed.	Fixer-uppers or homes that require extensive work.
Median value homes that are close to the average fair market price.	Luxury homes or homes priced higher than the area’s median value.
Basic or standard blueprints with no customizations.	Unique or custom features or fixtures.
Modern construction though not necessarily new.	Old with construction dating back 50 years or more.

Zillow Offers

Throughout 2021, Zillow Offers’ algorithm approved more home purchases than ever. In November 2021, Zillow announced it would end its iBuying program after less than three years

Zillow Offers sold 786 in 2019Q2, up from 414 in the previous quarter.
Zillow increased iBuyer sales by 89.9% from 2019’s first to second financial quarter.
Zillow claims it plans to sell 7,000 homes for $2.8 billion – an average of $400,000 per home – to institutional investors.
Traditional listings on Zillow sold for 0.09% more on average than similar listings from Zillow Offers.

iBuyer Market Statistics