Key Highlights

In Q2 2025, individual and institutional real estate investors purchased one-third of all single-family homes nationwide. According to data from real estate data provider BatchData and CJ Patrick Company reports, this proportion increased from 27% in Q1 and reached the highest level in nearly five years. Institutional investors have experienced "more sales than purchases" for six consecutive quarters.

On August 27, 2025, a "SOLD" sign is displayed in front of a house for sale in San Francisco, California, USA.

In Q2 2025, individual and institutional real estate investors purchased one-third of all single-family homes nationwide. According to data from real estate data provider BatchData and CJ Patrick Company reports, this proportion increased from 27% in Q1 and reached the highest level in nearly five years. In 2024, investors accounted for 25.7% of residential sales.

Despite the increased proportion of investor purchases, the absolute number of investor home purchases actually declined. In Q2 this year, investor purchases decreased by 16,000 units compared to the same period last year, but overall home sales this year were also significantly lower than last year—which explains the rise in investor proportion. Currently, approximately 20% of America's 86 million single-family homes are still owned by investors.

Ivo Draginov, co-founder and Chief Innovation Officer of BatchData, stated: "Although investors purchased more homes than they sold in Q2, they still sold over 104,000 properties, with 45% sold to traditional buyers. Therefore, investors not only continue to provide necessary liquidity to the sluggish housing sales market but also bring much-needed inventory—including both rental properties and homes for owner-occupants to purchase."

While large institutional investors dominate media headlines in the single-family rental sector, small investors are the market's main force, accounting for over 90%. These investors typically own 10 or fewer properties, while large investors owning 1,000 or more properties represent only 2% of all investor-owned properties.

Unlike individual investors, institutional investors have been experiencing "more sales than purchases" for six consecutive quarters. Analysis by Parcl Labs shows that America's largest home rental companies—Invitation Homes, Progress Residential, American Homes 4 Rent, and FirstKey Homes—all exhibited "more sales than purchases" trends in Q3 this year.

Rick Sharga, founder and CEO of CJ Patrick Company, noted: "They are not exiting the sector but rather redirecting funds toward 'build-to-rent communities.' However, this shift means reduced competition for small investors and traditional buyers, while also adding more rental inventory to the market—which is urgently needed as many young people choose to rent due to inability to purchase homes."

From a regional distribution perspective, Texas, California, and Florida have the highest numbers of investor-owned properties, largely because these three states are also America's most populous. States with the highest proportions of investor-owned properties are Hawaii, Alaska, Montana, and Maine—all popular tourist destinations.

Investors have traditionally favored lower-priced properties, as these typically generate the highest returns upon future resale. CJ Patrick's report shows that in Q2 this year, investors' average purchase price per property was $455,481, significantly below the national average home price of $512,800. However, due to continued overall home price increases, this still represents the highest average purchase price for investors over the past six quarters.

Properties held by investors are typically either smaller in size or located in lower-priced markets. Large investors have lower purchase prices, with an average purchase price of $279,889 and an average sale price of $334,787. Institutional investors are primarily concentrated in the Midwest and South, regions where home prices are below the national average.