Long Island homes are not attracting much interest from the institutional investors that are snapping up thousands of properties in other regions.
In Suffolk County, home purchases by institutional investors -- that is, those buying 10 or more homes in a year -- made up 1.78 percent of the residential real estate market from 2011 through 2013, according to a report released Wednesday by RealtyTrac. The share was even lower in Nassau County, where just 0.9 percent of home purchases during the same period were made by institutional investors.
By contrast, 6.1 percent of home sales nationwide over that three-year period were to institutional investors.
The main reason for the disparity is the high price of homes on Long Island, said Daren Blomquist, vice president at RealtyTrac.
In December, the median home price in Suffolk County was $337,500, and in Nassau County it was $420,000, RealtyTrac reported. Investors typically try to purchase homes for less than $200,000, Blomquist said.
“They’re doing a simple calculation of purchase price-to-rental rates, and the higher the purchase price, the less that equation makes sense,” he said.