Out-of-state investment in U.S. single-family homes remains elevated in 2025, even as the housing market continues to cool from pandemic-era extremes, according to new data from SFR Analytics.
Nonresident investors accounted for 5.56% of single-family home purchases nationwide this year. That share is slightly below 2024 levels and well under the 2021 peak, but it remains close to the pre-pandemic baseline of 5.8% in 2019.
Analysts say the persistence of nonlocal buyers points to a lasting shift in housing market dynamics rather than a temporary surge tied to COVID-era disruptions.
SFR Analytics defines out-of-state investments by comparing property deed locations with the mailing addresses of owners. A purchase is classified as out of state if the deed and mailing address are in different states.
Transactions are excluded from the report if the mailing address is within a 60-mile radius of the purchased property, even if that distance crosses a state line.
National trends since 2019
Out-of-state investment has followed a clear arc over the past six years. Before the pandemic, nonresident buyers made up 5.8% of single-family purchases nationwide.
That figure surged to 7.29% in 2021 — driven by remote work, low mortgage rates and intensified investor interest in Sun Belt and lifestyle-oriented markets.
As borrowing costs rose, activity cooled. The out-of-state share slipped to 5.74% in 2024 and edged down again to 5.56% in 2025.
While that marks continued moderation, the rate remains elevated relative to the years before institutional and small investors expanded aggressively into single-family rentals.
Resort towns, select metros lead
Out-of-state investment varies widely by geography.
Resort and vacation destinations dominate the list of markets with the highest nonresident homeownership shares in 2025.
Breckenridge, Colorado, leads the nation as 34.8% of single-family home purchases this year were made by out-of-state buyers.
Brevard, North Carolina; Jackson, Wyoming; Seaford, Delaware; and Kapaa, Hawaii, also posted rates above 25% — reflecting strong demand for second homes and vacation properties.
Among larger metropolitan areas, Florida markets continue to stand out. North Port–Bradenton–Sarasota recorded a 20.1% out-of-state rate, while Cape Coral–Fort Myers reached 19.5%.
Memphis, Tennessee, and Columbus, Ohio, also posted elevated levels of nonlocal investment. Phoenix remained active but showed a notable year-over-year decline as pricing pressure eased.
Market shift, U-shaped price pattern
Comparing 2024 with 2025 highlights where investor interest is accelerating and where it is retreating.
Birmingham, Alabama, recorded the largest increase among major metros as out-of-state activity rose by 2.68 percentage points.
Indianapolis and Columbus also saw meaningful gains, suggesting that large investors are pivoting toward Midwest and Southeast markets that offer relative affordability and stronger rent-growth potential.
At the same time, several markets saw sharp pullbacks.
Baton Rouge, Louisiana, posted the steepest decline, followed by Gulfport–Biloxi, Mississippi; Little Rock, Arkansas; Wilmington, North Carolina; and Las Vegas.
Analysts said these drops reflect cooling conditions in traditional Sun Belt hot spots after years of rapid price appreciation.
Out-of-state investment also varies significantly by price segment.
The lowest-priced homes posted a 6.16% nonresident share — signaling continued interest from investors who are focused on affordable rental housing. Middle-priced homes recorded the lowest rates out-of-state activity, generally between 4.3% and 4.7%.
At the top end of the market, the highest-priced homes posted a 9.11% out-of-state rate, driven by luxury, vacation and second-home purchases.
The result is a U-shaped pattern, with nonlocal investors concentrated at the most affordable and most expensive ends of the market, according to SFR Analytics.
Who the buyers are
Roughly 30% to 35% of out-of-state purchases nationwide are made by large investors that complete 10 or more transactions per year.
These buyers are concentrated in Sun Belt rental markets and Midwestern value plays.
Individual investors with smaller portfolios account for about 40% to 45% of activity, while vacation and second-home buyers represent roughly 20% to 25%.
Some markets — including Fayetteville, North Carolina, and St. Louis — are dominated by large investors. Others, particularly in New England and parts of the Mountain West, remain largely driven by individual buyers, the report added.
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