Dallas and Houston lead the nation in investor home purchases
Investor activity in the U.S. housing market softened slightly in the second quarter of 2025 but remains elevated relative to historical norms, according to new data by Cotality, a global property analytics firm.
Investors accounted for 32% of single-family home purchases in January, before easing to 29% by June. While down from the start of the year, that share remains well above June 2024 levels, when investors made up 25% of transactions. The data underscores how investors continue to fill gaps in the rental market as first-time buyers are priced out by high home prices, elevated mortgage rates, and constrained inventory.
“Investors expanded their market presence significantly in 2025, building on historically high levels,” said Thom Malone, principal economist at Cotality. “Their resilience in a high-price, high-rate environment positions them to meet rental demand. Cash purchases and strong rental returns help offset elevated interest rates and home prices.”
Cotality reports that investors are buying roughly 85,000 homes per month in 2025, essentially unchanged from the 84,000 monthly average in the first half of 2024. While overall investor share has grown, a return to 2022’s monthly volumes–around 120,000 homes–appears unlikely without similar price appreciation. The shift toward investors is largely attributable to a decline in owner-occupied transactions.
Medium-sized investors, those owning 10 to 99 properties, have driven recent gains, expanding their market share from 6% in June 2024 to 10% in June 2025. Small investors, with fewer than 10 properties, remain the largest segment at 14% of the market. Large investors (101-1,000 properties) accounted for 3% of purchases, and mega investors (more than 1,000 properties) represented 2%.
“Medium investors occupy a hybrid position,” Malone said. “They are more likely than small investors to pay cash and more committed than mega investors, who tend to be more diversified, making them a stabilizing force in housing markets.”
Geographically, Dallas and Houston lead the nation in both investor and overall purchases, followed by Atlanta, Phoenix, and Los Angeles. While Los Angeles stands out for high investor activity, total transactions remain comparatively low. Riverside, California, ranks twelfth nationally in investor engagement, highlighting sustained Southern California demand.
When examining investor share rather than absolute purchases, only Los Angeles and Atlanta appear in the top five for both metrics. In most major metropolitan areas, small investors consistently account for roughly 15% of the market, with variations in total share largely driven by medium, large, and mega investors. Atlanta’s prominence in investor share, for instance, depends heavily on mega investor activity.
Seasonal trends remain evident, with investor share peaking in winter and declining in summer as owner-occupied buyers re-enter the market. Absent major shifts in interest rates or macroeconomic conditions, Cotality expects investor share to hover between 25% and 30% for the foreseeable future.
English