Real Estate Investors are Buying 27% of U.S. Homes
David Garner
David Garner🏠 U.S. Housing Market Update – July 2025: Investors Now Buy 1 in 4 Homes
Real estate investors are playing a growing role in the U.S. housing market. In the first quarter of 2025, they bought nearly 27% of all homes sold, up from an average of 18.5% between 2020 and 2023. This shift is reshaping market dynamics and creating new opportunities for investors.
In this report, we’ll break down the latest data, explore what it means for investors, and offer insights into how to navigate the current landscape.
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📊 Key Data Snapshot
| Metric | Value |
|---|
| Investor share of home sales (Q1 2025) | 27% |
| Homes bought by investors | 265,000 (↑ 1.2% YoY) |
| Investor-owned single-family homes | ~1.2 million (2024) |
| Institutional share of investor homes | ~2.2% |
| Housing inventory (YoY change) | +30% nationally |
| Sellers reducing prices (May 2025) | 19% (highest since 2016) |
Related: Most Real Estate Investors are Buying in The Next 12 Months
🧠 What This Means for Investors
1. Individual Investors Still Dominate
Despite headlines about Wall Street firms, most investor-owned properties are held by individuals and small businesses. Institutional investors own just 2.2% of investor properties, according to Redfin.
That means small investors still drive the market, and most competition comes from other individuals, not mega-firms.
2. Higher Inventory = More Negotiating Power
Housing supply is up 30% year-over-year, giving investors more choice and leverage. In many markets, sellers are increasingly motivated: nearly 1 in 5 homes had a price cut in May.
👉 Inventory is up most in cities like Denver, Austin, and Seattle, prime areas for investors looking to grow portfolios.
3. Affordability Challenges Create Openings
High mortgage rates (currently ~6.6%–6.7%) have priced out many first-time homebuyers. Investors with cash or flexible financing can move in where owner-occupiers cannot.
As Yuval Golan, CEO of Waltz, told Mortgage Professional America:
“Real estate has become a safe haven again. It’s the tangible, inflation-resistant asset that offers both cash flow and capital growth.”
Related: The Top 7 U.S. Real Estate Markets to Buy Rental Properties in 2025
📉 Regional Trends to Watch
| Market | Supply Trend | Investor Opportunity |
|---|---|---|
| Austin, TX | ↑ Inventory | Favorable pricing, rental demand |
| Denver, CO | ↑ Inventory | More options, fewer buyers |
| Miami, FL | Tight inventory | High prices, overbidding risk |
| Phoenix, AZ | Balanced | Steady rents, moderate supply |
🔗 Investopedia – Supply Trends
📉 Risk Factors for Investors
| Risk Area | Details |
|---|---|
| Rising Rates | Holding costs and financing harder to manage |
| Cooling Rents | High supply may flatten rents in some markets |
| Regional Bubbles | Overheated markets like Miami or Boise pose risk |
| Exit Timing | Refinance windows may close quickly in 2026 |
🧭 Strategic Advice for Today’s Investor
Buy Below Market Value
Use rising inventory to negotiate price or closing cost credits. Use that to buy down your mortgage rate if you can.Use DSCR Loans
DSCR loans are investor-friendly. They don’t require traditional income verification and are ideal for portfolio builders.Target Growth Markets
Look for areas with population growth, improving infrastructure, and rising rental demand.Prepare for Refinancing
Lock in terms now and plan to refinance when rates fall, likely into 2027.Watch Institutional Moves
If big firms begin re-entering a market, it may signal coming appreciation.
Related: International Investment in U.S. Real Estate: 2024 in Review
💬 Expert Quotes
“Investors are stepping in where traditional buyers can’t. This is driving activity in markets that would otherwise stall.”
— BatchData Q1 Report
“The balance of power has shifted. Sellers are reducing prices, and buyers with flexibility have the upper hand.”
— Redfin Senior Economist Taylor Marr
Related: Top 5 U.S. States With the Biggest Housing Shortage
✅ Conclusion
The U.S. housing market is in transition. As traditional homebuyers retreat, investors are stepping in fuelled by cash, creative financing, and long-term strategy. The data shows that this isn’t just a trend, it’s a structural shift.
For investors, this is a prime moment to expand carefully. Focus on markets with rising supply, avoid speculative overbidding, and secure financing that works now, with flexibility for the future.
Stay sharp, stay informed, and invest with intention.
GROW YOUR WEALTH WITH U.S. REAL ESTATE
Start your U.S. real estate investment journey today with high-quality cashflow real estate. Book a Agende uma conversa estratégica gratuita e individua with a member of our senior management team to discuss your personalized strategy.
“Having personally invested in over 120 US rental properties from overseas, I know the true value of getting the right advice and support.
David Garner – Cashflow Rentals
GROW YOUR WEALTH WITH U.S. REAL ESTATE
Start your US real estate investment journey today, and book a Agende uma conversa estratégica gratuita e individua with a member of our senior management team.
“Having personally invested in over 120 US rental properties from overseas, I know the true value of getting the right advice and support.
David Garner – Cashflow Rentals
❓ FAQs
Why are investors buying so many homes now?
Traditional buyers face affordability issues. Investors with capital or non-traditional financing can act faster and secure deals others can’t.
Is rising inventory good or bad for investors?
Good—if you do your homework. More homes mean more options and better pricing, but it also requires market-by-market analysis.
Should I track what institutional investors are doing?
Yes. Their buying behavior is often a market signal. If they’re buying, expect prices to follow.
![USA Property Investment for Foreign Buyers [2025 Guide]](https://cashflowrentals.net/wp-content/uploads/2025/07/USA-Property-Investment-for-Foreigners-Expert-2025-Guide-500x383.png)
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