Investors purchased about one third of the U.S. homes for sale in the second quarter, according to a recent report from Cotality.
While investor activity dipped slightly in the second quarter it remains elevated compared to years past. In January, investors accounted for 32% of single-family home purchases.
By June the share of investors had dropped to 29%, but that was still higher than the same time in 2024 when investors represented 25% of all purchases.
It’s clear that investors are stepping in to meet the strong demand for rental housing as rising inventory levels, high home prices, and elevated mortgage rates continue to sideline many first-time buyers.
“Investors expanded their market presence significantly in 2025, building on historically high levels,” says Thom Malone, principal economist at Cotality, in the report. “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.”
Cotality forecasts that investor purchase levels will likely remain steady through the end of 2025.
This year, investors bought around 85,000 homes per month, which is nearly identical to the 84,000 monthly average in the first half of 2024.
While investor share is higher, a return to the purchase volumes of 2022 — when monthly investor purchases averaged 120,000 — is unlikely without similar price appreciation. However, the higher share of investor purchases in the market is largely due to a decline in owner-occupied transactions.
Dallas, Houston, Atlanta, Phoenix and Los Angeles were the top five cities for investors in the second quarter, according to the report.
Photo: Giorgio Trovato