Nationwide, investors are holding off on a buying spree for homes; year-over-year, such deals rose just 2% in 4Q 2025. And though investors purchased 18% of homes that sold in the period, activity was essentially flat for the eighth straight quarter, according to a new Redfin analysis.
However, some large West Coast metros proved the exception to the rule, while some in Florida lent it support.
In Seattle, investor home purchases shot up 37% year-over-year in the quarter; in Portland, OR, 27%; in Milwaukee, 24%; in San Francisco, 24% and in Providence, 20%.
But in Florida, many investors pulled back. Purchases in Orlando fell 16% -- the most of any metro. In Fort Lauderdale, they dropped 15%, in Las Vegas 12%, in Nashville 9% and in Jacksonville 7%. Florida was also affected by rising costs and homeowner association fees, falling rents and home prices, as well as a build-up of inventory. In contrast, luxury home purchases by investors in West Palm Beach climbed 17%.
Redfin attributed the nationwide slowdown in investor activity to high home prices and mortgage rates that are pricing both individuals and investors, along with flippers, out of the market. Economic uncertainty also plays a role. The rising cost of building materials and labor shortages in the construction industry are other factors, along with slowing rental price growth.
"Nearly one in 10 (9.2%) homes sold by investors in December sold at a loss, up from 7.1% a year earlier," the report noted.
"Still, most investors selling their homes are earning money: The median capital gain on homes sold by investors is $185,918, near an all-time high" – because prices are near their record high.
According to the report, President Trump's proposal to bar investors who own more than 100 single-family homes from buying more is unlikely to be effective, because large investors own only a small share of such homes.
At the same time, investors with deep pockets see opportunity in expensive West Coast cities where ordinary people have been priced out. Some investors are also banking on an AI boom and return-to-office policies to boost demand in San Francisco. Smaller mom-and-pop investors may buy as a wealth-building strategy.
Investors bought 5% more high-end homes in 4Q 2025 than the previous year, seeing opportunity in the luxury market, which is more competitive than the non-luxury market, the report said. Purchases of mid-priced homes rose 2%, but low-priced ones remained flat.
The fourth quarter also saw 3% more single-family homes bought by investors than in the year prior. Multifamily properties rose 2% and condo purchases were up 1%, but 8% fewer townhouses changed hands.
The metros where investors held the highest market share were Miami (32%), Anaheim (26%), San Diego, San Francisco and Cleveland (25% each), Los Angeles (24%), as well as Cleveland and New York (22% each).
Investors held the lowest market shares in Montgomery County, PA and Warren, MI (10% each); Providence and Minneapolis (11%), Washington, DC and Seattle (12% each); Portland, OR (13%) and Virginia Beach, Denver and New Brunswick, NJ (14% each).
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