Investor purchases continue to play a major role in 2025’s housing landscape. The World Property Journal reports that investors made up 32 percent of single-family home sales in January but eased to 29 percent by June. That’s still well above the 25 percent share seen in June 2024, highlighting how investors are continuing to fill gaps as first-time buyers face affordability challenges.
Why Investors Stay Active
Cotality estimates that investors are buying about 85,000 homes per month in 2025—nearly identical to last year’s average of 84,000—even as overall sales by owner-occupied buyers decline.
Thom Malone, Cotality’s principal economist, explains investors are “resilient in a high-price, high-rate environment.” Many purchase with cash, making interest rates less of a barrier, and strong rental returns help offset steep prices.
Who’s Leading the Charge?
Small investors (fewer than 10 properties) remain the largest group, owning 14 percent of the market.
Medium investors (10–99 properties) have ramped up from 6 percent in June 2024 to 10 percent in June 2025, becoming key players.
Hot Spots for Investor Activity
Top metro areas include Dallas and Houston, which lead in both investor purchases and total transactions. Atlanta, Phoenix, and Los Angeles follow closely. Notably, in most metros, small investors consistently make up about 15 percent of purchases, with larger gains driven by medium and large investors.
Seasonal trends also persist—investor share typically rises in winter and eases in summer as owner-occupied buyers return to the market.
What This Means for You
First-time Buyers: Investor competition, especially from cash buyers, continues to impact affordability and inventory availability.
Renters and Rental Markets: High investor activity may sustain rental supply but could also keep rents elevated.
Market Dynamics: The rise of medium-size investors suggests a shifting landscape—more diversified, yet still residential-focused ownership.
Conclusion
Despite a modest retreat mid-year, investor purchases remain a significant force in the housing market, accounting for nearly one-third of single-family home sales. With cash-ready buyers and strong rental demand, investors—especially small and medium—continue to shape market trends. For buyers, policymakers, and industry professionals, understanding where and how these dynamics play out is crucial to navigating today’s complex housing environment.
