In a significant shift in the U.S. real estate investment market, investor selling accounted for a record 10.8% of all sellers in 2024.
That’s according to a report from Realtor.com, which also found that the share of homes purchased by investors edged up slightly to the highest investor seller share on record.
As the housing market continues to normalize following the pandemic-era frenzy, inventory levels are improving, home price growth is leveling off and rents are easing.
“Investor trends signal a transition,” Danielle Hale, chief economist, Realtor.com, said in a news release. “Nationwide, investors picked up more homes on net in 2024, as smaller investors were a growing majority of investor buyers. But with investor selling at a new high, the market saw the smallest net investor buying activity in five years, lessening one of the notable headwinds for entry-level buyers who often compete with investors.”
During 2024, investors bought 13.0% of homes purchased nationwide, below the 2022 peak of 13.3%, but slightly up from 2023. This increase was due in part to a decline in total home sales, meaning that investor presence grew as the market shrank. Meanwhile, investors accounted for 10.8% of sellers in 2024, the biggest share ever, up from 10.1% in 2023. The result was the smallest margin between investor buying and selling since 2019, meaning investors’ net impact on overall supply was reduced.
Small investors increased their dominance in 2024. That group — made up of entities that have bought fewer than 10 homes — accounted for 59.2% of investor purchases, the highest share on record. Activity by large investors — entities that have purchased 50 or more homes — fell to 21.7% of purchases, the smallest portion since 2007. Small investors bought 361,900 homes in 2024, an increase of 3.7% from the previous year. In comparison, purchases by large investors decreased 8.7% to 132,500 homes, the fewest since 2018.
Fewer All-Cash Investment Transactions
During 2024, all-cash sales were more prevalent in the overall housing market, but investors were more likely to use debt. While all-cash investor purchases remained nearly double the cash share of total home sales, they declined to the lowest level since 2008. The share of small investor cash purchases fell to 62.0% in 2024, down from the 2023 peak of 65.6%. The share of large investor cash purchases fell from 73.2% in 2023 to 68.9% in 2024.
Investors Favor Affordable, Bustling States
Investor activity varied considerably by region. The states with the highest investor buyer share were Missouri (21.2%), Oklahoma (18.7%) and Kansas (18.4%). The states with the highest share of investor sellers were Oklahoma (16.7%), Missouri(16.7%), and Georgia (15.9%).
The states with the largest net-negative impact on supply (more buyers than sellers), were Hawaii, Montana and Washington D.C. The states with the largest net-positive impact (more sellers than buyers) were California, Minnesota and Oregon.
The states with the biggest increase in investor buying share from 2023 were Delaware, Ohio and Washington D.C. The states with the greatest growth in investor selling were Mississippi, Nevada and South Dakota.
“Investor strategies vary across the U.S.,” Hannah Jones, senior economic research analyst, Realtor.com, said in a news release. “In some states like Hawaii, Montana and Washington, D.C., investors are still net buyers, competing with first-time buyers for entry-level housing inventory. This contrasts with markets like California, Minnesota and Oregon, where investors are net sellers, creating opportunities for aspiring homeowners.”
In a survey of the 150 largest U.S. metros, Springfield, Mo., Memphis, Tenn., and Wichita, Kan., had the highest share of investor buyers. The leading metros for investor seller share were Memphis, Tenn., Oklahoma City and Springfield, Mo. Investors most significantly boosted net demand in Miami, Pittsburgh and New York, while they increased supply the most in Sacramento, Minneapolis and Portland.
The Realtor.com analysis examined deed records dating from January 2000 to February 2025 nationally, at the state-level and in the 50 largest U.S. metros. The survey included only single family homes, condos, townhomes and row houses and excluded multi-family buildings, which is not a market the typical homebuyer is competitive in.
