iBuyers, or instant buyers, are companies that use technology to make quick, cash offers on homes. They have become increasingly popular in recent years, as they offer a convenient and hassle-free way to sell a home.

While iBuyers can be a convenient option for home sellers, they can also have a negative impact on racial disparities and individual homeownership rates in major cities.

Racial disparities

iBuyers are more likely to purchase homes in minority neighborhoods, where homes are often undervalued and less likely to be listed on the traditional real estate market. This can lead to increased gentrification and displacement in minority neighborhoods, as iBuyers often purchase properties and then sell them for a higher price.

Individual homeownership rates

iBuyers can also make it more difficult for individuals to purchase homes, as they often offer prices that are below market value. This can make it difficult for first-time homebuyers to compete in the market and lead to a decline in individual homeownership rates.

In conclusion, while iBuyers can be a convenient option for home sellers, they also have the potential to contribute to racial disparities and reduce individual homeownership rates in major cities.