Are Investors Really Buying One-Third of U.S. Homes? The 2025 Housing Investor Boom, Explained

Headline numbers paint a striking picture: depending on who you ask, investors accounted for roughly one‑third of U.S. home purchases at mid‑year 2025—or closer to one in ten. BatchData’s Q2 Investor Pulse report put the investor share at 33% of single‑family purchases in Q2 2025, while Cotality reported investor share running about 29%–32% from January to June. [prnewswire.com][cotality.com] Realtor.com’s Midyear Update, by contrast, measured investors at 10.8% of Q2 transactions, with small buyers representing the majority of activity. [realtor.com]

Why the big gap? Data sources define “investor” differently and track different sets of sales. Some series focus on single‑family only, others include condos or exclude certain deed types; some classify by portfolio size or owner‑occupancy flag. The most important takeaway isn’t the exact number—it’s that investor share remains elevated versus pre‑pandemic norms because owner‑occupant demand is still constrained by prices and rates. [realtor.com]

Rates are part of the story. Freddie Mac’s PMMS showed the 30‑year fixed averaging 6.24% on November 13, 2025—well below the 2023 highs but still a stiff headwind for entry‑level buyers. [globenewswire.com]

Builders are leaning into this reality. Lennar launched an Investor Marketplace in August to help mom‑and‑pop landlords underwrite new‑build purchases with rental comps, yield estimates and plug‑and‑play property management partners. That push coincides with a rare pricing shift: ResiClub’s New Home Premium Index showed the median new single‑family price in August 2025 was slightly below (-0.2%) the median existing-home price, the lowest premium on record. For rental buyers, warranties and lower cap‑ex on new construction can offset the lack of cosmetic “value‑add” found in older resales. [resiclubanalytics.com]

Fractional ownership is also evolving. On November 12, Arrived announced the launch of its Secondary Market—positioned as a stock‑market‑style trading venue for shares of individual rentals—alongside a $27 million fundraise. The platform reports 850,000+ registered investors, more than $300 million invested across 550+ properties in 65 cities. Trading windows rolled out in phases: an initial August window, a broader September window, and full eligible‑property trading by November, with quarterly windows slated in 2026. [prnewswire.com][help.arrived.com]

What do rental fundamentals look like heading into 2026? Multifamily is mixed but stabilizing. Yardi Matrix’s October 2025 read showed average advertised apartment rents at $1,743 (flat to slightly down year‑over‑year) with absorption slowing after a strong first half. RealPage likewise reported a third straight month of annual rent cuts in October and occupancy easing to 94.9%—still within a normal range historically. [multihousingnews.com][realpage.com] Single‑family rentals continue to outperform on pricing: Zillow estimates SFR rents are roughly 20% higher than apartment rents nationally, and pandemic‑era gains leave SFR rents about 41% above pre‑2020 levels. [investors.zillowgroup.com]

Price resets since 2022 have reshaped the multifamily playbook. Green Street’s index indicates U.S. commercial property values remain well below their 2022 peak—roughly 19% lower as of fall 2025—with core sectors including apartments still off highs, though declines have moderated. That backdrop, combined with elevated new supply rolling off in 2026, supports the view that rent trends should normalize as completions slow. [bisnow.com]

What it means for participants:

• For buyers: Underwrite with today’s rents, not 2021 comps. Stress‑test insurance, taxes, and rate refi paths. If you’re targeting SFRs, compare new‑build offers (with incentives and warranties) to older resales that need cap‑ex—especially in markets where the new‑home premium has flipped. [resiclubanalytics.com]

• For sellers: Investor buyers remain active and often pay cash, but their return hurdles are higher. Make rent‑ready improvements that hit the first‑year yield math (energy efficiency, durable finishes) rather than costly, slow‑payback renovations.

• For small investors: Fractional platforms can provide diversification and liquidity via scheduled trading windows, but remember these are periodic markets with eligibility rules and no guarantee of continuous liquidity. [help.arrived.com]

What to watch next:

• Rates: Weekly PMMS prints will steer affordability and purchase timing. A sustained move lower would likely reduce investor share by pulling more owner‑occupants back into the market. [globenewswire.com]

• Supply: Multifamily deliveries remain elevated through the near term; the pipeline should taper in 2026, which could firm rents and occupancy. [multihousingnews.com][realpage.com]

• Policy and practices: Litigation and new rules around rent‑setting algorithms could alter pricing behavior across large operators, particularly in high‑supply metros.

Bottom line: Regardless of whether investors captured 11% or ~30% of purchases this year, their footprint is meaningful. Builders, platforms, and lending markets are adapting—creating new on‑ramps for small landlords while the rental market works through late‑cycle supply and price resets. The opportunity set is widening, but so is the need for disciplined underwriting and source‑aware data reading.