Investors Now Buying One-Third of All U.S. Homes Sold

Investor Share Hits Five-Year High

Real estate investors—both individuals and institutions—purchased one-third of all single-family homes sold in the second quarter of 2025, according to a report from CJ Patrick Co. using data from BatchData. That marks a jump from 27% in the previous quarter and represents the highest share in five years. Khwanchai Phanthong / Pexels

Total Purchases Down Despite Larger Market Share

Despite investors accounting for a larger share of home purchases, the actual number of properties they acquired dropped by about 16,000 compared with the same period last year. The decline reflects a broader cooling in the housing market, which made investor activity appear proportionally higher even as overall transactions fell. Currently, investors collectively own an estimated 20 percent of the nation’s 86 million single-family homes. Pavel Danilyuk / Pexels

Providing Liquidity and Inventory

“While investors purchased more homes than they sold in the second quarter, they did sell over 104,000 homes, with 45% of those sales going to traditional homebuyers,” said Ivo Draginov, co-founder and chief innovation officer at BatchData. “So in addition to the important role investors continue to play providing necessary liquidity to a weak home sales market, they're also bringing much-needed inventory—both rental properties and homes for owner-occupants—to the market.” Jakub Zerdzicki / Pexels

Small Investors Dominate the Landscape

Although large corporate landlords tend to dominate the spotlight, small-scale investors continue to drive the market. Over 90% of all investor-owned homes are held by individuals with portfolios of 10 properties or fewer. In comparison, major institutional owners—those managing 1,000 or more homes—account for only about 2% of investor-held properties. Jakub Zerdzicki / Pexels

Regional Concentration in Key States

Texas, California, and Florida lead the nation in investor-owned homes—largely due to their population size. States with the highest percentage of investor ownership include Hawaii, Alaska, Montana, and Maine, which are also strong tourism markets. Jakub Zerdzicki / Pexels

Focus on Lower-Priced Homes

Investors continue to target lower-priced homes, which tend to deliver higher returns. In the second quarter of 2025, investors paid an average of $455,481 per home—well below the national median sale price of $512,800, though it marked the highest investor average in six quarters. olia danilevich / Pexels

Institutional Investors Target Cheaper Markets

Large institutional investors paid even less, with an average purchase price of $279,889 and an average sale price of $334,787. These companies remain concentrated in the Midwest and South, where property values fall below national norms. olia danilevich / Pexels

Broader Market Implications

The data reflects how investor activity—particularly from smaller buyers—continues to shape the housing market amid affordability pressures. While investor participation provides stability and liquidity, it also raises concerns about competition with first-time homebuyers. RDNE Stock project / Pexels