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maller investors are capitalizing on the opportunity as economic pressures make it difficult for many buyers to afford a home, according to a recent Cotality report. Investor activity in the housing market remains strong in 2025, indicating they see potential in the rental market despite affordability challenges.

    Investors accounted for nearly 30% of single-family home purchases in June, down from 32% in January but significantly higher than pre-pandemic levels when shares typically stayed below 20%. This growing presence demonstrates investors' resilience in a high-price, high-rate environment, said Thom Malone, principal economist at Cotality.

    Investors' tendency to make all-cash home purchases means high interest rates are less of a deterrent. Strong rental returns can also offset current high prices, making them well-positioned to meet demand. Investor activity is expected to remain steady through the end of 2025, according to the report.

    Smaller investors with between 10 and 99 properties drove the recent uptick in investor activity, growing their market share from 6% to 10%. Those owning fewer than 10 properties collectively hold a 14% share of the overall market. Investors with more than 1,000 properties have the smallest market share at 2%.

    Dallas was the top city for investor activity between January and June, with 21,842 purchases made. Houston followed closely behind, with Atlanta, Phoenix, and Los Angeles also seeing significant investor activity. Among these cities, only Los Angeles had a relatively low number of non-investor purchases, bringing the area close to a 50-50 split.