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nvestor Buying Activity Remains Historically High in 2025

    Cotality data shows U.S. single‑family home purchases by investors fell slightly in Q2 2025 but stay well above pre‑pandemic levels. Investors accounted for 29 % of all purchases in June, down from a 32 % peak in January, yet still comfortably above the 25 % share recorded in June 2024. Rising borrowing costs and high prices keep many first‑time buyers out, leaving investors to meet rental demand.

    “Investors have expanded their market presence in 2025, building on historically high levels,” said Cotality principal economist Thom Malone. “Their resilience in a high‑price, high‑rate environment keeps them well positioned to satisfy rental demand. Cash purchases shield them from interest‑rate pressure, and strong rental returns offset elevated prices.”

    Steady Volumes, Shifting Composition

    Investors bought roughly 85,000 homes per month this year, nearly unchanged from the 84,000‑unit average in H1 2024. Cotality does not expect a return to the 2022 frenzy—120,000 monthly—without a comparable rise in home‑price appreciation. The increased investor share stems more from fewer owner‑occupants entering the market than from a surge in investor buying. First‑time buyers still struggle with mortgage rates near multi‑decade highs and record‑level prices.

    Medium‑sized investors (10–99 properties) grew fastest, rising to 10 % of purchases in June from 6 % a year earlier. Small investors (<10 homes) remain dominant at 14 % of all purchases. Large investors (101–1,000 homes) hold 3 %, while mega investors (>1,000 homes) account for 2 %. Medium operators blend the cash‑paying habit of small landlords with the focused exposure of larger firms, making them especially active in the for‑rent single‑family sector.

    Sun Belt Metros Remain Investor Magnets

    Dallas, Houston, Atlanta, Phoenix and Los Angeles topped the list of metros for total investor purchases in H1 2025. However, when measured by investor share, only Los Angeles and Atlanta appear on both lists. Dallas remains the largest overall market but falls to tenth place by share due to strong owner‑occupied activity. Across 18 of the top 20 metros, small investors consistently represent about 15 % of the market, with variations driven largely by medium, large and mega buyers. Atlanta would exit the top 20 without mega‑investor participation.

    Seasonal Patterns Likely to Persist

    Investor activity historically peaks in winter and eases in summer as traditional buyers return, a pattern that held this year. Absent major shifts in interest rates or macroeconomic conditions, Cotality expects investor share to stay between 25 % and 30 % for the rest of 2025. Malone notes that fundamentals still favor rental demand, and as affordability remains strained for owner‑occupants, investors will continue to be a major force in the U.S. housing market.