The most recent report on investor activity in the US housing market was published by Cotality. Although it decreased somewhat in Q2 of 2025, investor activity was still high when compared to previous years.
Per the recent report, in January, some 32% of single-family home purchases were made by investors. Although investors’ proportion had decreased to 29% by June, it was still more than it was at the same point in 2024, when they accounted for 25% of all acquisitions. As increased inventory levels, high property prices, and elevated mortgage rates continue to keep many first-time buyers out of the rental market, it is evident that investors are stepping in to fulfill the strong demand.
“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.”
Investors Making Their Mark on the Market
Investor buying levels will likely remain constant through the end of 2025. Investors purchased about 85,000 properties a month this year, which is almost the same as the first-half 2024 average of 84,000 units per month. A return to the 2022 buy numbers, when monthly investor purchases averaged 120,000, is improbable without comparable price appreciation, even though the investor portion is bigger. However, a decrease in owner-occupied transactions is primarily responsible for the market’s increased proportion of investor acquisitions.
The current surge in investor activity has been led by medium-sized investors, who now hold between 10 and 99 properties. Their market share increased from 6% in June 2024 to 10% in June 2025. With a 14% market share, small investors (those with fewer than 10 properties) continue to be the most prevalent investor category. Mega investors (more than 1,000 properties) made up 2% of acquisitions, while large investors (101–1,000 properties) made up 3%.
The diverse makeup of medium investors probably contributed to their rising presence. They are less diversified than big investors, which makes them more devoted to the property market, and they are more likely to pay in cash than small investors.
The top five cities for investors are Los Angeles, Dallas, Houston, Atlanta, and Phoenix.
In terms of both investor and non-investor acquisitions, Dallas and Houston remain the top two cities in the country. High transaction volumes are a hallmark of Phoenix and Atlanta. Los Angeles is unique in that it has a lot of investors but not many transactions. Riverside is ranked tenth in terms of investment activity, indicating that Southern California continues to attract significant investor interest.
Geographic variety is revealed when looking at investor share as opposed to overall purchases. For both categories, the only cities that rank in the top five are Los Angeles and Atlanta. Dallas is ranked eighth in terms of investor share but first in terms of overall investor acquisitions. Small investors regularly account for 15% of the market in 18 of the top 20 MSAs. Medium, large, and mega investors are the main drivers of variations in the overall share. For instance, without big investor activity, Atlanta would not rank in the top 20.
As owner-occupied purchasers return to the market, investor share seems to follow a seasonal pattern, increasing in the winter and decreasing in the summer. For the foreseeable future, the percentage of investors is anticipated to range between 25% and 30%, barring significant shifts in interest rates or macroeconomic circumstances.
Note: The Cotality Investor Purchase Indicator defines an investor as a buyer owning three or more properties. Investor categories are defined as follows:
- Small: fewer than 10 properties
- Medium: 10–99 properties
- Large: 100–999 properties
- Mega: 1,000+ properties
This indicator identifies purchases made by investors but does not infer the intended use of the property. Only arm’s-length purchases of single-family homes (detached and townhomes) are included in this analysis.
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