N
early a third of all listed single‑family homes and townhouses in the United States are now being snapped up by property investors, according to a fresh Cotality analysis of transactions from January to June 2025. The study shows that “mega” investors—those owning 1,000 or more properties—are carving out a near‑monopoly in several major metros, including Memphis, Tennessee, a city that tops the U.S. News & World Report list of most dangerous places to live.

    Cotality’s report tracks four investor categories: small (fewer than 10 properties), medium, large, and mega. Small investors dominate the market, holding 14% of all purchases, but mega investors, though only 2.2% of the investor pool, have more than doubled their share since early 2023, when they represented just 1%. Their peak was 3.2% in Q3 2023, after which the percentage has slipped slightly.

    Investor activity was strongest in January, when they accounted for 32% of single‑family home sales, falling to 29% by June. Even at its lowest, the June figure remains well above the 25% share recorded in the same month of 2024. High mortgage rates and soaring home prices continue to push first‑time buyers out of the market, leaving a robust rental sector that attracts cash‑rich investors.

    “Investors are expanding their reach in 2025, building on historically high levels,” says Thom Malone, Cotality’s principal economist. “Their resilience in a high‑price, high‑rate environment is evident. Because they often buy with all cash, rising rates are less of a deterrent, and the strong rental returns can offset the elevated purchase prices.”

    Mega investors gravitate toward markets with solid rental demand. Memphis, despite its high crime rate, is a prime example. The city’s median home price is $339,950, while the average household income is only $53,366—making homeownership difficult for many residents. Median rent sits at $1,186, the lowest among the top 50 metros but still 15% higher than pre‑COVID levels, indicating robust rental growth. Jake Krimmel, senior economist at Realtor.com, calls Memphis a “sweet spot” for investors: “It’s a relatively inexpensive market with resilient demand, offering upside potential.”

    In the long term, Memphis is one of only five Southern markets where median list prices have surpassed their 2022 peak, the national high point. Krimmel notes that Memphis remains a cheap market with strong demand, unlike other Southern metros such as Austin, Miami, or Nashville.

    Atlanta tops the list of cities favored by mega investors, capturing 11.4% of the investor share. Malone attributes Atlanta’s appeal to its historic population and job growth, which signal rising demand, and to the inertia created by investor activity in 2021‑2022 that has built economies of scale. Atlanta also ranks third for the number of hours a minimum‑wage worker would need to earn to cover rent, according to Realtor.com.

    Los Angeles, while the city with the highest overall investor share (44.2%), ranks third among mega investors. Mega investors are also active in other expensive California markets—San Francisco and San Diego—where a post‑financial‑crisis investor presence and recent out‑migration have created perceived bargains.

    The presence of mega investors makes it harder for average buyers to secure a desirable single‑family home. Malone explains that both first‑time buyers and investors target the lower end of the market, where demand is strongest. Mega investors can outmaneuver the average buyer in several ways:

    * They typically have cash on hand, eliminating the need for mortgage approval or appraisal contingencies.

    * They can waive inspection contingencies, confident that occasional surprises are offset by their diversified portfolios.

    * They can simply outbid other buyers, using deep pockets to secure properties quickly.

    Malone predicts that, barring major shifts in interest rates or macroeconomic conditions, investor share will hover between 25% and 30% in the near future.

    Destiny Simone Minor of Fathom Realty in St. Louis notes that investors are increasingly active in the city, which ranks 17th nationally. Minor recently sold a $5,700 fire‑damaged single‑family home to an investor who can quickly repair and rent it out. St. Louis attracts investors from across the globe, including Latin America and the Congo.

    The 20 metros most popular with mega investors, ranked by investor share, are:

    1. Atlanta, GA – 11.4%

    2. Memphis, TN – 6.7%

    3. Los Angeles, CA – 5.8%

    4. Oklahoma City, OK – 5.3%

    5. Riverside, CA – 4.8%

    6. San Francisco, CA – 4.8%

    7. Seattle, WA – 4.8%

    8. San Diego, CA – 4.6%

    9. Dallas, TX – 4.4%

    10. Nashville, TN – 3.7%

    11. Albuquerque, NM – 3.4%

    12. San Antonio, TX – 3.4%

    13. Kansas City, MO – 3.4%

    14. Tulsa, OK – 3.1%

    15. Omaha, NE – 3.0%

    16. Houston, TX – 2.9%

    17. St. Louis, MO – 2.4%

    18. Salt Lake City, UT – 2.3%

    19. Las Vegas, NV – 2.1%

    20. El Paso, TX – 0.5%