Investor housing market share dips but remains elevated

"A year earlier, investors represented 25% of the market. Investors expanded their market presence significantly in 2025, building on historically high levels, said Thom Malone, principal economist at Cotality. This demonstrates their resilience in a high-price, high-rate environment. As these adverse conditions are expected to persist, investors are well positioned to meet rental demand. Their tendency to buy with all cash means high interest rates are less of a deterrent. Plus, current high prices can be offset by strong rental returns."

"Cotality's data show investors purchased about 85,000 homes each month in the first half of 2025, nearly the same as the 84,000 monthly average a year earlier. That level remains well below the peak of 120,000 monthly purchases seen in 2022, but investor share has increased as owner-occupied transactions have slowed. Medium-sized investors defined as those holding between 10 and 99 properties have driven much of the growth."

"Dallas, Houston, Atlanta, Phoenix and Los Angeles had the highest number of investor purchases. Dallas led in total investor transactions but ranked only 10th in investor share. Los Angeles, by contrast, had a relatively high share despite lower overall transaction volume. When measured by share rather than raw totals, only Los Angeles and Atlanta ranked in the top five for both categories."

Investors expanded market presence in 2025, sustaining historically high levels despite a high-price, high-rate environment. Many investors buy with all cash, reducing interest-rate deterrents, and high prices can be offset by strong rental returns. Cotality's data show investors purchased about 85,000 homes monthly in the first half of 2025, similar to the 84,000 monthly average a year earlier but below the 120,000 peak in 2022. Investor share increased as owner-occupied transactions slowed. Medium-sized investors (10–99 properties) drove growth, rising from 6% to 10% of purchases year-over-year, while small investors (<10 properties) remain the largest group at 14%. Geographic patterns vary, with Dallas, Houston, Atlanta, Phoenix and Los Angeles among top investor markets.

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