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

by | Oct 7, 2025 | Business

A sold sign is posted in front of a home for sale on Aug. 27, 2025 in San Francisco, California.Justin Sullivan | Getty ImagesA version of this article first appeared in the CNBC Property Play newsletter with Diana Olick. Property Play covers new and evolving opportunities for the real estate investor, from individuals to venture capitalists, private equity funds, family offices, institutional investors and large public companies. Sign up to receive future editions, straight to your inbox.Real estate investors, both individual and institutional, bought one-third of all single-family residential properties sold in the second quarter of 2025. That is an increase from 27% in the first quarter, and the highest percentage in the last five years, according to a report from CJ Patrick Co., using numbers from BatchData, a real estate data provider. Investors accounted for 25.7% of residential home sales in 2024.While the share of sales is higher, the raw numbers are lower. Investors in the second quarter of this year bought 16,000 fewer homes than a year ago, but home sales overall were much weaker this year than last year. That accounts for the gain in the investor share. Investors continue to own about 20% of the 86 million single-family homes in the country.”While investors purchased more homes than they sold in the second quarter, they did sell over 104,000 homes, with 45% of those sales going to traditional homebuyers,” said Ivo Draginov, co-founder and chief innovation officer at BatchData. “So in addition to the important role investors continue to play providing necessary liquidity to a weak home sales market, they’re also bringing much-needed inventory – both rental properties, and homes for owner-occupants – to the market.”While large institutional investors continue to get most of the headlines in the single-family rental space, small investors account for more than 90% of the market. These are individuals owning 10 properties or less. The largest investors, those with 1,000 or more properties, make up just 2% of all investor-owned homes.Get Property Play directly to your inboxCNBC’s Property Play with Diana Olick covers new and evolving opportunities for …

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