Investors Are Buying Up Homes: What Does This Mean for You?

Q2 2025 Investor Activity

In the second quarter of 2025, investors, both big and small, grabbed a third of all single-family homes sold. That's a jump from the first quarter and the highest in five years. But here's the twist: they bought fewer homes than last year. Why? Because overall home sales took a nosedive.

Investors now own about 20% of the 86 million single-family homes in the country. They're not just buying; they're also selling. In fact, they sold over 104,000 homes, with nearly half going to regular homebuyers. So, they're adding to the market's supply, which is good news for everyone.

Investor Types

Most investors are small players, owning 10 properties or less. The big guys, with over 1,000 properties, make up just 2% of the market. These large investors are selling more than they buy, shifting their focus to build-to-rent communities. This means less competition for small investors and traditional homebuyers, and more rental options for those who can't afford to buy.

Geographic Distribution

Where are these investor-owned homes? Texas, California, and Florida have the most, but that's no surprise—they're the most populous states. But if you're looking for the highest percentage of investor-owned homes, check out Hawaii, Alaska, Montana, and Maine. These are also big on tourism.

Investment Trends

Investors love lower-priced homes because they can make bigger profits later. In the second quarter of 2025, they paid an average of $455,481 per home, which is below the national average. But it's the highest average investor price in the past six quarters, as home prices keep climbing.