Investor activity stayed steady through mid-2025. In the second quarter, investors bought about 11% of all homes sold, roughly the same as last year, according to Realtor.com. Overall home sales dropped about 4%, but investor purchases slipped only 3%, giving investors a slightly bigger piece of the market.
At the same time, investor selling slowed. They sold around 216,000 homes in the first half of the year, down just over 4% from 2024. That means investors still bought more homes than they sold (about 21,000 more in Q2), showing continued confidence in the rental market.
The biggest change this year is who’s buying. Small investors, such as local buyers adding a few rental properties, made up about 63% of investor purchases, the highest share in nearly two decades. Large investors, including corporations, pulled back and accounted for only about one-fifth of investor purchases.
Investors Compete With First-Time Homebuyers
Investor activity is strongest in lower-cost markets. States such as Missouri (18.9%), Mississippi (17.1%), and Nevada (15.4%) saw the highest share of homes bought by investors. Among major cities, Memphis, St. Louis, and Oklahoma City led the pack. This is explained by the fact that these markets offer cheaper homes and steady demand from renters.
In the Midwest, investors bought properties far below local median prices in cities such as Detroit, Cleveland, and Milwaukee, aiming for solid rental income. In contrast, investors in Los Angeles, New York, and San Francisco paid premiums for homes, betting on long-term value growth and high rents.
Nationally, the typical investor home cost $287,000, about $80,000 less than the median U.S. sale price. That means investors are mostly competing in the same affordable price range as many first-time buyers.
With mortgage rates still high and rent demand remaining steady, investors (especially smaller ones) are likely to stay active heading into 2026, keeping competition strong in lower-cost housing markets in particular.
