Investor Share Of Home Purchases Holds At 30% In 2025

Cotality reported Thursday that real estate investor activity in the U.S. single-family home market remained stable through 2025, accounting for 30% of all purchases, up slightly from 29% in 2024.

Persistent housing unaffordability is keeping many owner-occupant buyers on the sidelines while fueling demand for rental properties, the report found.

“Fewer first-time homebuyers mean more people are staying in the rental market, and investors are responding to that demand,” Thom Malone, principal economist at Cotality, said in a statement. “The current landscape differs significantly from the pandemic-era surge, which was fueled by rapid price appreciation. Now, while real estate is no longer the ‘hottest’ asset, strong rental demand and the ability to secure acquisitions below list price are keeping investors engaged even as traditional buyers retreat.”

Investor purchases averaged 80,000 to 100,000 homes per month in 2025, roughly matching 2024 levels. While overall home sales have declined since 2021, investors have proven more resilient than traditional buyers, aided in part by all-cash offers that bypass elevated interest rates and allow for deeper discounts.

Small investors (those that own fewer than 10 properties) and medium investors (10 to 99 properties) together account for nearly one-quarter of all U.S. home purchases. Large investors (100 to 999 properties) and mega-scale investors (1,000 or more) represent about 5% of the market but play an outsized role in providing capital and setting professional management standards, Cotality said in the report.

Geographically, Dallas, Houston, Atlanta, Phoenix and New York were the top cities for investor activity. Population growth is driving acquisitions in Dallas and Houston, while New York and Chicago remain attractive due to strong home-price appreciation.

A key trend highlighted in the report is that volume does not always align with market share. While Texas cities have high numbers of investor purchases, Dallas and Houston rank 14th and 16th, respectively, for overall market share.

Conversely, high-cost California metros such as San Jose and Los Angeles have the largest investor market shares, suggesting that in unaffordable markets, investors fill gaps left by inactive consumer buyers.

Cotality projects investor market share will remain steady through early 2026, with a seasonal dip toward 25% as owner-occupied activity typically rises in the summer.

But long-term trends will depend on mortgage rates. If rates stay higher, owner-occupant demand may remain subdued, maintaining investor influence. If rates fall, traditional buyers could reclaim market share, reducing investor dominance.