Investors Are Snapping Up More Homes — But Big Players Are Pulling Back
Real estate investors are back in a big way. In the second quarter of 2025, investors—both individuals and institutions—purchased one-third of all single-family homes sold across the U.S., according to CNBC. That’s up from 27% in the first quarter, marking the highest share of investor activity in the past five years.
But there’s an interesting twist: while smaller investors continue to scoop up properties, large institutional investors have been net sellers for six consecutive quarters. These big firms are offloading more homes than they’re buying, signaling a shift in their long-term strategy.
So, what’s driving this? Rising rents, limited housing inventory, and strong demand for single-family rentals are giving smaller investors confidence to jump back in. Meanwhile, institutional players may be taking profits or repositioning their portfolios in a changing market.
For everyday buyers and sellers, this dynamic means increased competition in many markets—especially at entry-level price points. Investors are keeping the pressure on inventory, and that’s something to watch as we head into 2026.