Realtor.com: Investor Selling Reaches a Record
AUSTIN, TX—While the share of homes purchased by investors edged slightly higher, investor selling hit a record high with 10.8% of sellers representing investors in 2024, the highest investor seller share in the data's history, according to a report out today from Realtor.com. This significant shift in investor market participation comes as the overall housing market continues to adjust from the pandemic-era frenzy, with inventory levels improving, home price growth leveling off and rents easing.
“Investor trends signal a transition,” said Danielle Hale, chief economist, Realtor.com. “Nationwide, investors picked up more homes on net in 2024, as smaller investors were a growing majority of investor buyers. But with investor selling at a new high, the market saw the smallest net investor buying activity in five years, lessening one of the notable headwinds for entry-level buyers who often compete with investors.”
Nationally, 13.0% of homes purchased in 2024 were bought by investors, a slight increase from 2023 but still below the 2022 peak of 13.3%. This increase occurred in part due to a decrease in total home sales, indicating a growing presence of investors in a smaller market. On the sell side, investors accounted for 10.8% of sellers in 2024, the highest share on record, up from 10.1% in 2023. This shift resulted in the smallest margin between investor buying and selling since 2019, suggesting a reduced net impact of investor demand on overall supply.
Small Investors Share Growing
A significant trend observed in the 2024 data was the growing dominance of small investors. Small investors, defined as those entities that have purchased fewer than 10 homes, made up 59.2% of investor purchases, the highest share in the data’s history. In contrast, large investor activity, which includes entities who have purchased 50 or more homes, fell to 21.7% of purchases, the lowest since 2007. Small investors purchased 361,900 homes in 2024, a 3.7% year-over-year increase, while large investor purchases decreased by 8.7% to 132,500 homes, the lowest level since 2018.
Fewer Investors Purchase in All-Cash
While all-cash sales became more prevalent in the overall housing market in 2024, investors were more likely to utilize debt. All-cash investor sales fell to their lowest level since 2008, although they remained nearly double the cash share of total home sales. Small investors saw the cash purchase share fall from its peak of 65.6% in 2023 to 62.0% in 2024, the lowest small investor cash purchase share since 2008. The large investor cash purchase share fell from 73.2% in 2023 to 68.9% in 2024, the lowest level since 2015.
Investors Pick Affordable, Bustling States for Investment
Regionally, investor activity varied considerably. Missouri (21.2%), Oklahoma (18.7%), and Kansas (18.4%) had the highest investor buyer share, while Oklahoma (16.7%), Missouri (16.7%), and Georgia (15.9%) saw the highest share of investor sellers. In terms of net impact on supply, Hawaii, Montana and Washington D.C. experienced the largest net-negative impact (more buyers than sellers), while California, Minnesota and Oregon saw the largest net-positive impact (more sellers than buyers). The states with the largest growth in investor buying share compared to 2023 were Delaware, Ohio and Washington D.C., while investor selling grew the most in Mississippi, Nevada and South Dakota.
In the New York metro region, the investor buyer share was 12.7%, nearly flat from the previous year (+0.5%).
“Investor strategies vary across the U.S.,” said Hannah Jones, senior economic research analyst, Realtor.com. “In some states like Hawaii, Montana and Washington, D.C., investors are still net buyers, competing with first-time buyers for entry-level housing inventory. This contrasts with markets like California, Minnesota and Oregon, where investors are net sellers, creating opportunities for aspiring homeowners.”
Among the 150 largest U.S. metros, Springfield, MO, Memphis, TN and Wichita, KS, recorded the highest investor buyer share. Memphis, TN; Oklahoma City and Springfield, MO, led in investor seller share. On a net basis, investors most significantly boosted demand in Miami, Pittsburgh and New York, while they added most to supply in Sacramento, Minneapolis and Portland.
