If you want a front-row seat to the ways iBuyers can disrupt a real estate market, Phoenix provides a pretty good case study. Both Opendoor and OfferPad chose the Phoenix MSA to launch their iBuying business, and Zillow Offers jumped in soon after. Phoenix now has at least 17 different companies offering cash to homeowners, all attracted to the homogeneous nature of Phoenix’s housing stock.
In 2019, iBuyers were responsible for 5% to 6% of the total number of houses sold in Phoenix — about 1,000 houses a month. But in some areas, the percentage was much higher. In the Pecan Creek neighborhood, for example, iBuyers purchased 13.7% of the homes for sale last year.
But Phoenix was just the start.