Investors Continue to Shape the U.S. Housing Market

Investor activity in the U.S. housing market remains robust, according to the latest report from Cotality, even as overall purchases have seen some cooling in the second quarter of 2025. While there was a slight decline from earlier in the year, investor involvement continues to outpace previous years, highlighting the persistent role of investors in today’s housing landscape.

In January 2025, investors were responsible for approximately 32% of all single-family home purchases. By June, this share had dipped slightly to 29%, yet it remained well above the 25% recorded at the same point in 2024. Experts suggest that high home prices, rising mortgage rates, and increased housing inventory have collectively kept many first-time buyers out of the market, creating opportunities for investors to step in and meet demand.

“Investors have expanded their footprint in 2025, maintaining historically high levels of activity,” said Thom Malone, Principal Economist at Cotality. “Even in a high-cost, high-rate environment, their resilience is evident. Many investors purchase properties with cash, making interest rates less of a barrier, and strong rental yields can offset elevated home prices. They are well-positioned to satisfy the ongoing rental demand, particularly in markets with limited supply.”

Consistency in Investor Purchases

Cotality’s data suggests that investor activity is likely to remain steady through the remainder of 2025. On average, investors have acquired roughly 85,000 properties per month this year, closely matching the first-half 2024 monthly average of 84,000 units. While a return to 2022 levels when monthly investor purchases averaged 120,000 is unlikely without substantial price appreciation, the increased proportion of investor activity primarily reflects a slowdown in owner-occupied home purchases rather than a surge in total acquisitions.

Medium-sized investors, those holding between 10 and 99 properties, have been at the forefront of this activity, growing their market share from 6% in June 2024 to 10% in June 2025. Small investors, owning fewer than 10 properties, continue to dominate, accounting for 14% of acquisitions. Large investors (101–999 properties) represent 3%, while mega investors (1,000+ properties) account for just 2% of total purchases.

“Medium investors are an interesting and diverse segment,” Malone added. “They are typically more focused on real estate as a core investment, often pay in cash, and are less diversified than large institutional investors. Their commitment and flexibility have likely contributed to their increasing market presence.”

Hot Spots for Investor Activity

The cities leading investor purchases include Los Angeles, Dallas, Houston, Atlanta, and Phoenix. While Dallas and Houston see high transaction volumes, Phoenix and Atlanta are notable for active buying in both investor and non-investor categories. Los Angeles stands out for its significant investor presence, even though total transactions are relatively lower. Riverside, California, also ranks in the top ten, underscoring Southern California’s enduring appeal to real estate investors.

When evaluating investor share rather than raw numbers, Los Angeles and Atlanta remain in the top five, while Dallas, despite high transaction numbers, ranks eighth. Small investors maintain a strong presence across markets, consistently representing around 15% of activity in 18 of the top 20 metropolitan areas. Medium, large, and mega investors account for most of the variability in overall market share, with cities like Atlanta heavily reliant on their participation to maintain their ranking.

Seasonal and Future Trends

Investor share tends to fluctuate seasonally, increasing during winter months and declining in summer as owner-occupied buyers return to the market. Looking ahead, Cotality anticipates investor purchases will continue to represent roughly 25% to 30% of total single-family home acquisitions, barring major changes in interest rates or broader economic conditions.

The Cotality Investor Purchase Indicator defines investors as buyers holding three or more properties. The categories include:

• Small: fewer than 10 properties
• Medium: 10–99 properties
• Large: 100–999 properties
• Mega: 1,000+ properties

This analysis focuses exclusively on arm’s-length purchases of single-family homes, including detached and townhome properties, without making assumptions about the intended use of each acquisition.

As economic conditions continue to challenge traditional homebuyers, investors appear poised to play an increasingly central role in the housing market, shaping rental supply and influencing overall market dynamics. Observers note that understanding investor behavior is becoming essential for policymakers and developers alike, particularly as affordability and supply pressures persist in key metropolitan regions. For direct financing consultations or mortgage options for you visit 👉 Nadlan Capital Group