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#Real Estate #Markets

Investors are making up the highest share of homebuyers in 5 years

In Q2 2025, real estate investors purchased one-third of single-family homes sold, marking a five-year high despite lower overall sales.
Investors are making up the highest share of homebuyers in 5 years
A What happened
In the second quarter of 2025, real estate investors, both individual and institutional, purchased one-third of all single-family residential properties sold, a notable increase from 27% in the first quarter and the highest percentage in five years. Despite this rise in market share, the total number of homes bought by investors decreased by 16,000 compared to the previous year, attributed to a general decline in home sales. Investors currently own about 20% of the 86 million single-family homes in the U.S. Notably, while large institutional investors are selling more homes than they buy, small investors dominate the market, owning over 90% of investor-owned properties. The average price paid by investors was $455,481, lower than the national average, indicating a continued focus on lower-priced homes for better resale profits.

Key insights

  • 1

    Investor Market Share Growth

    Investors bought one-third of homes sold in Q2 2025, the highest in five years.

  • 2

    Institutional Selling Trends

    Institutional investors have been selling more homes than they purchase for six consecutive quarters.

  • 3

    Small Investors Dominate

    Small investors own over 90% of the investor market, despite headlines focusing on large institutions.

Takeaways

The evolving dynamics of the real estate market highlight the significant role of both individual and institutional investors.

Read the full article on CNBC