US Markets
Investor Homebuying Activity Holds Steady in 2025 as Selling Eases for First Time in 2 Years, Realtor.com Says
Investor homebuying activity held largely steady last year, while selling eased for the first time in two years as sales reached a multi-decade low, News Corp's (NWS, NWSA) Realtor.com said Tuesday.Investors bought approximately 534,000 homes in 2025, a 0.7% year-over-year gain that raised their market share to 11.3% from 11% in 2024, according to the online real estate portal. Investors sold 442,000 properties last year, 1.5% fewer than the previous year and the lowest count since 2020."The 2025 data describes an investor market that has found a new floor rather than continuing to retreat," Realtor.com said, adding that the investor purchase share has now held above 11% for three straight years. "With small investors comprising two-thirds of all investor activity, that floor is unlikely to erode quickly even if financing conditions remain challenging."The share of investor sellers held at 9.3% last year, matching its 2024 level, though the absolute count of investor sales fell to 442,000 from 448,000, the report showed.Small investors, or corporate entities with fewer than 10 total purchases, saw their share of all investor purchases rise to about 63% in 2025, the highest concentration of small-investor activity in more than 15 years. Mega investors, or those with 350 or more purchases, accounted for only 7.5% of investor purchases by 2025, their smallest share since 2011, according to the report."Small investors are the stable floor beneath the more volatile institutional activity," Realtor.com Senior Economist Hannah Jones said. "They purchase at a median of $330,000 nationally -- about 25% below the overall market median of $440,000 -- meaning they are systematically active in the entry-level tier where first-time buyers are also competing.Region-wise, the US Midwest and Sun Belt drove investor activity last year, the report showed."The composition shift away from mega investors removes one source of potential future surge, but it also removes the most likely source of large-scale market exit," Realtor.com said. "Absent a significant change in the rental economics that sustain small-investor returns, or policy intervention targeting corporate ownership at the local level, 2025's elevated-but-stable investor share appears to represent the new baseline."
