By 2025, investor purchases averaged 80,000 to 100,000 homes per month, roughly matching 2024 levels. While overall home sales have fallen since 2021, investors have proven more resilient than traditional buyers, helped in part by cash offers that sidestep high interest rates and allow for deeper discounts.
Small investors (those who own fewer than 10 properties) and mid-market investors (10 to 99 properties) together account for nearly a quarter of all home purchases in the US. Large investors (100 to 999 properties) and mega-investors (1,000 or more) represent about 5% of the market but play an outsized role in providing capital and setting professional management standards, Cotality said in the report.
Geographically, the top cities for investor activity were Dallas, Houston, Atlanta, Phoenix and New York. Population growth is driving acquisitions in Dallas and Houston, while New York and Chicago remain attractive due to strong housing price growth.
A key trend highlighted in the report is that volume does not always correspond to market share. While Texas cities see high levels of investor purchases, Dallas and Houston rank 14th and 16th, respectively, in total market share.
Conversely, expensive California metros such as San Jose and Los Angeles have the largest market shares for investors, suggesting that investors in unaffordable markets are filling gaps left by inactive consumer buyers.
Cotality Projects investors’ market share will remain stable until early 2026, with a seasonal decline to 25%, as residential property activity typically increases in summer.
But the long-term trends will depend on mortgage rates. If interest rates remain higher, demand from owner-occupiers may remain subdued, maintaining investor leverage. If interest rates fall, traditional buyers can regain market share, reducing investor dominance.
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