Mom-and-Pop Investors Dominate Housing Market, While Wall Street Pulls Back
Investor activity in the housing market remained steady in 2025, but mom-and-pop investors are claiming a larger share, according to a new report from Realtor.com®. The report reveals that:
- The share of home sales to investors increased slightly to 11.3% in 2025, up 0.3% from the previous year.
- Investors purchased 534,000 homes, with a median purchase amount rising 5.6%, narrowing the gap with non-investor purchases.
- Small investors account for two-thirds of all housing stock purchases.
- Large investors' activity has decreased by almost 70% since 2021, while "mega" investors (with 350+ homes) have seen a 30% decline.
The market shift is attributed to the post-COVID-19 era, where inventory levels have returned to pre-pandemic norms, and home price growth has moderated.
Investor Activity by Region
The Midwest and Sun Belt remain popular among real estate investors:
- Memphis, TN, led with the highest investor activity (23.7% of the market).
- Kansas City, MO, and St. Louis followed with 21.2% and 21.1% investor purchases, respectively.
- Birmingham, AL, and Oklahoma City round out the top five.
Atlanta, once a hotbed for investor interest, experienced a shift, becoming a city where investors were net sellers.
Market Dynamics and Future Outlook
Lincoln Palmer, COO of American Homes 4 Rent, noted the Midwest's strength and predicted a positive outlook for the region in the coming years.
ATTOM's data shows that the typical profit from flipping homes is rebounding, encouraging investors to target older, distressed properties.
The recent housing bill and subsequent scrutiny of investors are expected to influence market dynamics, but large institutional investors had already been reducing their activities for years, leading to a "new baseline."