TAMPA, Fla. (WFLA) — The number of homes bought by investors dropped nearly 20% in the first quarter of 2022. Redfin, a real estate company and analyst, said the number of investor purchases in their 10 biggest metros all went down.

“Real estate investors bought 77,829 homes in the metros tracked by Redfin in the first quarter, down 11.5% from the fourth quarter of 2021 and 16.5% from the third quarter of 2021,when investor purchases hit a record high,” the report said. “On a year-over-year basis, investor purchases were up 30.7%—the smallest annual gain in a year.”

Tampa was included in the top 10, with a 24.7% rate of investor purchases for residential real estate. However, the market had seen a 13% drop in the purchases from the last quarter, according to Redfin.

Despite the drop, Redfin reported that investors still bought one in five homes sold in markets across the U.S. The company said investors bought more homes as home purchases across the country overall decreased, which “allowed investors to increase their market share even while purchasing fewer homes.”

Redfin defines investor home purchases as any home or residential real estate bought by an institution or business.

“Investor home purchases are falling for the same reason overall home purchases are falling: Surging interest rates and high housing prices have made it more expensive to get a mortgage and buy a home,” Redfin Senior Economist Sheharyar Bokhari said. “While roughly three-quarters of investor purchases are made with cash, investors are still impacted by interest rates because often take out loans to get that cash.”

Bokhari said that about 75% of all investor purchases are made in cash, but the number of purchases was falling for “the same reason” all home purchases had dropped, higher interest rates and higher housing prices. Still, he said investors are able to buy homes even with the higher rates, meaning they’re “not feeling the pain of higher interest rates as intensely as individual buyers, many of whom are getting priced out of the housing market altogether.”

Investor purchases of residential real estate totaled up to nearly $50 billion in the first three months of 2022, according to Redfin. The company said that was a 6.8% drop from the previous quarter, but still 40.3% higher than the year before.

Redfin said it was the second quarter in a row that investor purchases had fallen, after their data showed investor purchases reached an all-time high at the end of 2021. Part of their continued purchase of homes could be due to the hot rental market, according to Redfin.

“While investor purchases have slowed, remain above pre-pandemic levels, in part because investors can rent out the homes buy and cash in on soaring rents,” Redfin reported. “Demand for rentals is high because there aren’t enough homes for sale, and the ones that are for sale are often prohibitively expensive.”

Here’s Redfin’s breakdown of the top 10 metros and how investor purchases had changed in 2022.

MetroShare of Homes Bought by InvestorsChange from Previous Quarter
Atlanta, Ga.33.1%-25.3%
Jacksonville, Fla.32.3%-21.7%
Charlotte, N.C.32.2%-19.1%
Phoenix, Ariz.29.0%-8.6%
Miami, Fla.28.2%-3.6%
Las Vegas, Nev.26.8%-16.5%
Orlando, Fla.25.7%-12.9%
Tampa, Fla.24.7%-13.0%
Nashville, Tenn.24.6%-16.5%
Columbus, Ohio22.8%-20.5%
(Source: Redfin)