Mom-and-Pop Investors Dominate Housing Market as Wall Street Steps Back
Investor activity in the housing market remained steady last year, with a growing presence from mom-and-pop investors, according to a new report. The share of home sales to investors rose slightly to 11.3% in 2025, up 0.3 percentage points from the previous year, as revealed in a Realtor.com® investor report. In total, investors purchased 534,000 homes, with their median purchase amount increasing by 5.6%, narrowing the gap with non-investor purchases.
Despite the decline, large investors still hold a significant portion of the market, down almost 70% from 2021, while "mega" investors (owning 350 or more homes) have decreased by a more modest 30% in the same period.
The market dynamics shifted significantly since the COVID-19 pandemic, when buyers competed with investors for limited homes. According to Realtor.com senior economist Hannah Jones, the situation has changed:
"Since then, the housing market has changed markedly. Inventory levels in many areas have returned to, or even exceeded, pre-pandemic norms, while home price growth has moderated and rent increases have slowed."
In 2025, investor buyer activity remained relatively consistent, with a steady purchase count and market share.
Popular Destinations for Investors
The Midwest and Sun Belt regions continue to attract real estate investors, as per Realtor.com data. Memphis, TN, led the pack with the highest investor activity (23.7% of the market), followed by Kansas City, MO (21.2%), St. Louis (21.1%), Birmingham, AL, and Oklahoma City.
Atlanta, once a hotbed for investor interest, experienced a shift, becoming a net seller, offloading 1,800 units.
Lincoln Palmer, COO of single-family investor American Homes 4 Rent, attributed the Midwest's stronger performance to factors like rate growth and migration, suggesting a positive outlook for the region.
Flipping Homes and Market Dynamics
ATTOM's data shows that the typical profit from flipping a home is recovering from Great Recession lows, encouraging investors to consider older, less-condition properties.
The recent housing bill and subsequent scrutiny of investors are expected to influence market dynamics. However, large investors have been scaling back for years, and these trends are becoming the new normal. Jones emphasizes that the removal of mega-investors as a potential source of market exit also means a structurally embedded small-investor presence remains.