As existing-home sales remained stuck near multi-decade lows in 2025, real estate investors continued buying at a steady pace, according to a new report from Realtor.com.
The Realtor.com Investor Report found that investors accounted for 11.3% of all home purchases in 2025, up slightly from 11.0% in 2024. Roughly 534,000 homes were purchased by investors last year, a 0.7% increase from the prior year, even as non-investor home sales fell 2.1%.
At the same time, investor selling activity slowed. Investors sold approximately 442,000 homes in 2025, down 1.5% year over year and the lowest level since 2020. The gap between investor purchases and sales widened to roughly 92,000 homes, suggesting investors remain committed to accumulating residential real estate despite elevated rates and affordability challenges.
"The investor market has found a new equilibrium," said Hannah Jones, senior economist at Realtor.com. "With small investors now comprising nearly two-thirds of all investor purchases and large institutional players continuing to pull back, the dynamics shaping competition in entry-level housing are shifting — but that competition hasn't gone away."
Small Investors Take Center Stage
One of the report's most significant findings is the continued rise of smaller investors.
By 2025, investors making fewer than 10 purchases accounted for approximately 63% of all investor acquisitions, the highest concentration of small-investor activity in more than 15 years. Meanwhile, so-called "mega investors" — entities with 350 or more purchases — represented just 7.5% of investor purchases, their smallest share since 2011. Purchase volume among mega investors has fallen nearly 70% from its 2021 peak.
While institutional buyers have largely shifted into net-selling mode, small investors remain active net buyers, acquiring roughly 53,000 more properties than they sold in 2025.
The trend could have implications for mortgage lenders, particularly those active in the Non-QM and investment-property lending space.
Unlike large institutions that often rely on corporate financing structures or private capital, many smaller investors utilize debt-service coverage ratio (DSCR) loans and other Non-QM products to finance acquisitions. As investor activity becomes increasingly decentralized, lenders focused on serving independent investors may find continued opportunities even as the broader housing market struggles with affordability and limited inventory.
Investors Continue Targeting Affordable Markets
Investor activity remained concentrated in lower-cost markets across the Midwest and Sun Belt.
Among the nation's 50 largest metros, Memphis led the country with investors accounting for 23.7% of all home purchases, followed by Kansas City (21.2%), St. Louis (21.1%), Birmingham (21.0%), and Oklahoma City (17.9%).
Many of those markets share characteristics that appeal to investors, including relatively affordable home prices, strong rental demand, and inventory that can still generate positive cash flow despite higher borrowing costs.
Conversely, investor participation remained relatively low in higher-cost markets. Portland, Ore., Sacramento, Calif., and Hartford, Conn., each posted investor purchase shares of roughly 6%, well below the national average. Realtor.com cited elevated acquisition costs and compressed rental yields as factors limiting investor interest in those regions.
A New Baseline For Investor Activity?
Despite higher rates and reduced transaction volume, investor participation has remained remarkably resilient.
Overall home sales are down more than 25% from the 2021-2022 market peak, but investor purchases have declined at a slower pace. Compared with pre-pandemic levels, overall home sales have fallen 14.3%, while investor acquisitions have increased 14.6%, according to the report.
Realtor.com suggests the market may be settling into a new normal where investors consistently account for more than one in every 10 home purchases.
For mortgage lenders, particularly those offering DSCR, bank-statement, and other investor-focused Non-QM products, that stability could help offset some of the volume pressures facing traditional owner-occupied lending channels.
"Investor purchase share has now held above 11% for three consecutive years," Jones said. "With small investors comprising two-thirds of all investor activity, that floor is unlikely to erode quickly even if financing conditions remain challenging."
