Investors Purchased 33% of Single-Family Homes In Q2, Report Finds

Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below.

Real estate investors made just over one-third of all single-family home purchases in Q2, according to the Q2 2025 Investor Pulse Report from BatchData and CJ Patrick Company.

At 33%, this is the highest percentage of investor purchases in the last five years, up from 27% in Q1. Overall, the report says investors own about 20% of the 86 million single-family homes in the U.S.

“Interestingly, while the percentage of single-family homes purchased by investors rose to a five-year high, the actual number of homes purchased during the second quarter of 2025 was 16,000 fewer than a year ago,” BatchData Chief Innovation Officer Ivo Draginov said in a statement.

Don't Miss:

Meet Flippy: The AI Robot Helping Fast Food Brands Cut Tens of Billions in Labor Costs — And You Can Invest Early Accredited Investors Can Now Tap Into the $36 Trillion Home Equity Market — Without Buying a Single Property

"So the relatively high percentage of home purchases by investors is at least partly due to overall home sales being weaker in Q2 2025 than they were in Q2 2024," he continued.

Mom-and-pop investors dominate when it comes to the type of investor making these purchases, the report found. Small investors, defined as those who own between one and five properties, held 87% of investor-owned single family homes.

Perhaps contrary to popular belief, large investors, defined as those owning 1,000 or more properties, held just 2% of all investor-owned homes. In fact, the report found that large investors seem to be scaling back on property ownership, as Q2 was the sixth consecutive quarter in which large investors sold more homes than they acquired.

Texas tops the list with 1.46 million investor owned properties, followed by California at 1.33 million and Florida at 1.1 million.

Trending: Arrived Home's Private Credit Fund’s has historically paid an annualized dividend yield of 8.1%*, which provides access to a pool of short-term loans backed by residential real estate with just a $100 minimum.

Tourist hot spots, and states that have experience recent population booms have also seen growth in their numbers of investor-owned properties. In Hawaii, for example, 26% of single-family homes are owned by investors. Alaska is similar, with 27% of single-family homes under investor ownership.

While states like Idaho, Vermont, and Wyoming may not have reached this saturation just yet, the increase in resident migration has caused the number of investor-owned homes to slowly increase.

Story Continues

The study also identified two other significant trends among investor-owned homes. The first, is that investors tend to exclusively purchase lower-cost homes. On average, they spent $455.481 per home, which is well below the average market price of $512,800. Larger investors tended to look for even cheaper properties, paying just $279,889 per home.

See Also: Missed Nvidia and Tesla? RAD Intel Could Be the Next AI Powerhouse — Just $0.81 a Share

The second, is that investors are more often than not selling these properties to other investors. Just over 53% of all investor-owned home sales were to other investors, the report said. Larger investors remained within this closed ecosystem more often than smaller investors, with 47% of the homes they purchased in Q2 coming from other investors and 66% of the homes they sold in Q2 going to other investors.

"It’s worth pointing out that 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,” Draginov said in a statement. “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.”

Read Next: Backed by $300M+ in Assets and Microsoft's Climate Fund, Farmland LP Opens Vital Farmland III to Accredited Investors

Image: Shutterstock

This article Investors Purchased 33% of Single-Family Homes In Q2, Report Finds originally appeared on Benzinga.com

View Comments