Record Investor Home Sales Create Opportunities for Buyers

The housing market is undergoing a shift as real estate investors continue to make a significant mark. According to the latest Investor Report from Realtor.com, investor activity ramped up in 2024 but not in the way many might expect. While investors remained active buyers, they also sold more homes than ever before, signaling a possible turning point in the market dynamic.

Investor Sales Reach Record Highs

In 2024, investors accounted for 13% of all home purchases a slight increase from 2023 but still shy of the 2022 high of 13.3%. However, the standout figure is on the selling side. Investor sales reached 10.8% of all homes sold last year, marking the highest percentage on record. This surge in selling activity created the smallest gap between investor purchases and sales since 2019, indicating that the net investor impact on housing supply was smaller than usual.

“Investor activity reflects a market in transition,” said Danielle Hale, Chief Economist at Realtor.com. “Although investors added more homes to their portfolios in 2024, record-high sales meant less pressure on inventory, potentially giving first-time buyers more breathing room.”

Regional Trends Reveal Contrasts

Investor behavior varied dramatically by state. Missouri, Oklahoma, and Kansas saw the highest percentage of investor purchases, while Oklahoma, Georgia, and Missouri led in investor sales.

Some states, like California, Minnesota, and Oregon, benefited from a net-positive investor supply more investor sales than purchases helping boost available inventory. In contrast, areas such as Hawaii, Montana, and Washington, D.C., experienced a net-negative impact, where investor purchases outpaced sales, reducing supply for traditional buyers.

Top States for Investor Purchases in 2024

• Missouri: 21.2%
• Oklahoma: 18.7%
• Kansas: 18.4%
• Utah: 18%
• Georgia: 17.3%

Meanwhile, Mississippi, Nevada, and South Dakota experienced the steepest year-over-year increases in investor sales, while Delaware, Ohio, and D.C. saw sharp jumps in investor buying.

Metro Areas With Highest Investor Activity

Among the 150 largest U.S. metro areas, Springfield, MO; Memphis, TN; and Wichita, KS topped the list for investor purchases. The highest investor sales occurred in Memphis, Oklahoma City, and Springfield.

Interestingly, investors had a significantly negative impact on supply in metro areas like Miami, Pittsburgh, and New York City markets where investor buying was strong despite slower overall transaction volumes.

Markets With the Greatest Negative Investor Impact:

• Miami-Fort Lauderdale-West Palm Beach, FL: -5.7%
• Pittsburgh: -5.1%
• New York-Newark-Jersey City, NY-NJ: -4.4%
• St. Louis, MO-IL: -4.3%
• Hartford, CT: -3.9%

Small Investors Take the Lead

A noteworthy trend in 2024 was the growing presence of smaller investors those with fewer than 10 properties. These buyers made up over 59% of all investor purchases, the highest level in recorded history. Large investors (50+ properties) accounted for just 21.7% of transactions, the lowest since 2007.

In numbers, small investors purchased 361,900 homes in 2024, a 3.7% increase from 2023. Meanwhile, large investors bought just 132,500 homes the lowest since 2018.

Financing Trends Shift Among Investors

Investor purchases in 2024 leaned more heavily on financing, even as all-cash deals grew more common across the broader housing market. All-cash investor sales dipped to 62%, down from 65.6% in 2023. This represents the lowest cash share for small investors since 2008 and the lowest for large investors (68.9%) since 2015.

States With the Largest Growth in Investor Buying Since 2019

• Montana: +6.3%
• Oklahoma: +5.7%
• Utah: +5.4%
• Delaware: +5.3%
• Wyoming: +4.9%

Investor activity continues to rise in states that gained population during the pandemic, particularly in the West. While many of these areas still see strong investor demand, some also show elevated investor sales, indicating ongoing churn in ownership.

Net Investor Impact Varies by Region

States like Hawaii, Montana, and Washington, D.C., experienced the largest net reduction in home supply due to more investor buying than selling. Conversely, places like California, Minnesota, Oregon, and Nevada saw investors selling more than they bought, helping replenish available housing stock.

Outlook for 2025

In early 2025, investor purchases accounted for 15% of all home sales up from 14.3% during the same period last year despite a 5.4% drop in overall home sales. At the same time, investor sales slipped slightly to 11.9% of all transactions.

Persistently high mortgage rates and steep home prices continue to limit activity from traditional buyers, potentially allowing investors to gain a larger share of the market.

While future trends depend on broader economic forces, one thing is clear: investors are still finding opportunities in regions with solid rental demand and relatively affordable home prices. With new housing construction slowing and rental markets tightening, investors may be positioned to meet growing demand for rental housing even as they pull back from large-scale ownership.