A new report from Realtor highlights the growing dominance of small investors – those who have bought fewer than 10 homes in the market. Their 59.2% share of all investor purchases was the highest on record, as they acquired 361,900 homes in 2024, 3.7% more than the previous year.
In contrast, acquisitions by large investors, defined as purchasers of 50 or more homes, fell 8.7% to 132,500 houses in 2024, the lowest level since 2018.
In 2024, 10.8% of sellers of single-family residential properties were investors – the highest level since analysts began to track this data and up from 10.1% in 2023.
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The share of investors who bought homes rose slightly from 2023 levels to 13% of all buyers – an increase likely due to a decline in total home sales, and a growing presence of investors in a smaller market, the report said.
“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,” said Danielle Hale, chief economist for Realtor.
The cachet of all-cash transactions lost some of its luster in 2024. Although investors often used cash, debt was more commonly favored. “All-cash investor sales fell to their lowest level since 2008, although they remained nearly double the cash share of total home sales,” the report stated. Cash purchases by small investors fell from 65.6% in 2023 to 62% in 2024. Large investors followed a similar path, with their share of cash purchases decreasing from 73.2% in 2023 to 68.9% in 2024.
Investors buying and selling homes favored states like Missouri and Oklahoma. Kansas was also popular with buyers, and Georgia with sellers. There were more buyers than sellers in Hawaii, Montana, and Washington, DC, and more sellers than buyers in California, Minnesota, and Oregon.
Among the 150 largest metros, the highest share of investor buyers was found in Springfield, MO, Memphis, TN, and Wichita, KS, and the highest share of investor sellers was in Memphis, Oklahoma City, and Springfield.
“This significant shift in investor market participation comes as the overall housing market continues to adjust from the pandemic-era frenzy, with inventory levels improving, home price growth leveling off and rents easing,” the report noted.
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