Small Investors Take Over as Institutional Buyers Retreat

Investor buying volume reached its lowest first-half level since 2020, even as investors’ share of purchases stayed near recent levels.

Rhea-AI Summary

Realtor.com (NWS) released its 2026 Investor Report, showing smaller investors taking a larger share of housing purchases as institutional buying eased.

Investors accounted for 10.7% of home purchases in the first half of 2026, near recent shares, but purchase volume reached its lowest first-half level since 2020. Small investors represented 66.2% of investor purchases, their highest share in at least 15 years. Large and mega investors sold more homes than they bought; small and medium investors remained net buyers.

All-cash transactions represented 55.5% of investor purchases versus 30.0% marketwide, down from an investor peak of roughly 68% in 2021 and 2022. The typical investor purchase price was 22.4% below the non-investor median. Among the metros analyzed, Memphis had the highest investor purchase share at 20.5%, while Colorado Springs had the lowest at 3.6%.

News Explained

“Small” means 1–10 purchases across the full dataset, not 1–10 during the first half of 2026; the report’s investor-size categories reflect entities’ cumulative purchase histories, so the reported shift between groups is based on lifetime-defined categories.

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Investor Activity Cooled in the First Half of 2026, but its Overall Share Changed Little as Buying Shifted Toward Smaller Investors, According to a Realtor.com^® Report

AUSTIN, Texas, Oct. 21, 2026 /PRNewswire/ -- Investors are not simply disappearing from the housing market; their presence is changing. In the first half of 2026, smaller investors strengthened their hold while large and mega investors pulled back, according to the Realtor.com^®'s 2026 Investor Report. Cash remains a defining feature of investor purchases, yet the investor and overall market all-cash share fell in the first half of 2026 as climbing inventory and softer market conditions eased all-cash buying.

Investors accounted for 10.7% of home purchases, close to their share in recent years. However, the number of homes they bought fell to its lowest first-half level since 2020. Investor selling eased slightly as well, but its share of home sales remained above pandemic- and pre-pandemic-era levels. Together, the trends point to a cooler market, not a uniform retreat by every kind of investor.

"Investor buying eased, but the bigger shift is who is buying," said Hannah Jones, senior economist, Realtor.com^®. "Small investors made up 66.2% of investor purchases, while large and mega investors sold more homes than they bought."

Cash remains a hallmark of investor buying

Investors still rely on cash far more often than buyers overall, in part because investment-property loans can bring higher rates, down-payment requirements and restrictions. Investors also often have greater access to capital. In the first half, 55.5% of investor purchases were all-cash, compared with 30.0% of purchases marketwide. That gap has narrowed as the investor cash share has fallen from a recent peak of roughly 68% in 2021 and 2022.

"Cash still sets investor purchases apart, even though its use has eased from recent highs," said Jones. "That's one sign the market has moved away from its pandemic-era intensity, even as investors remain an important part of home buying."

A different mix of investors is driving activity

Small investors accounted for 66.2% of investor purchases, their highest share in at least 15 years. Large and mega investors, by contrast, sold more homes than they bought. Their purchase activity has eased, while small and medium investors remained net buyers so far this year.

The price mix offers another clue about where investor activity sits: the typical investor purchase price remained 22.4% below the non-investor median, even as the gap narrowed. The report notes that this pattern could reflect small investors competing with entry-level buyers or focusing on lower-priced markets; the figures do not distinguish between the two.

Affordable Midwest and inventory-rich Sun Belt draw investors

Investor activity remained concentrated in the Midwest and Sun Belt, though the draw differs by region. The Midwest offers affordability, while ample inventory and softening prices in the Sun Belt make it easier for investors to enter those markets. Memphis, St. Louis and Kansas City each saw investors account for about one in five home purchases in the first half of 2026.

"Investor activity reflects local market conditions," said Jones. "Affordability supports activity in the Midwest, while available inventory and softer prices create opportunities in parts of the Sun Belt."

Markets with Largest Investor Purchase Footprints

Metro	2026 H1 Investor Buyer Share	YY	Median Purchase Price	Median Investor Purchase Price
Memphis, TN-MS-AR	20.5 %	-3.2 %	$250,000	$126,500
St. Louis, MO-IL	20.0 %	-0.7 %	$264,667	$125,000
Kansas City, MO-KS	19.1 %	-1.1 %	$340,154	$250,000
Wichita, KS	18.0 %	0.3 %	$241,550	$185,000
Toledo, OH	17.3 %	4.1 %	$199,900	$110,000
Dallas-Fort Worth-Arlington, TX	16.5 %	1.3 %	$375,000	$292,500
Indianapolis-Carmel-Greenwood, IN	16.1 %	1.2 %	$295,000	$168,250
Cleveland, OH	15.7 %	-0.2 %	$232,500	$120,000
Oklahoma City, OK	15.5 %	-2.6 %	$250,000	$140,000
San Antonio-New Braunfels, TX	15.3 %	-1.3 %	$298,640	$218,750

Markets with Smallest Investor Purchase Footprints

Metro	2026 H1 Investor Buyer Share	YY	Median Purchase Price	Median Investor Purchase Price
Colorado Springs, CO	3.6 %	-1.1 %	$459,000	$311,300
Portland-Vancouver-Hillsboro, OR-WA	4.9 %	-0.2 %	$549,000	$474,000
Oxnard-Thousand Oaks-Ventura, CA	5.7 %	0.0 %	$895,000	$900,000
Bridgeport-Stamford-Danbury, CT	5.7 %	-1.5 %	$684,900	$530,000
New Haven, CT	5.7 %	-2.4 %	$405,000	$280,000
Spokane-Spokane Valley, WA	5.8 %	0.4 %	$420,000	$230,000
Hartford-West Hartford-East Hartford, CT	5.8 %	-1.7 %	$385,000	$250,000
Stockton-Lodi, CA	5.9 %	0.5 %	$515,000	$328,000
Seattle-Tacoma-Bellevue, WA	6.0 %	-0.2 %	$737,500	$757,500
Port St. Lucie, FL	6.0 %	-0.2 %	$390,000	$283,500

Methodology
This report uses deed transaction data to identify corporate real estate investors active in the residential market. Investors are defined as entities purchasing single-family homes, condominiums, townhomes, and related residential property types using a corporate structure — limited liability companies, limited partnerships, general partnerships, trusts, and REITs — with occupancy codes indicating absentee or tenant-occupied use. Builder, relocation service, iBuyer, and financial institution transactions are excluded.

Investors are categorized by total purchase count across the full dataset: small (1–10 purchases), medium (11–50), large (51–350), and mega (351 or more). Because these categories are based on cumulative all-time activity, an entity's classification reflects its full history in the data rather than its activity in any single year.

Investor seller counts exclude transactions where the seller was disposing of a foreclosure or newly constructed property, ensuring that distressed and new-construction sales are not attributed as investor dispositions. Investor buyer counts include purchases of all qualifying property types regardless of foreclosure or new-construction status, consistent with the goal of capturing bottom-fishing and opportunistic acquisition behavior alongside standard buy-and-hold activity.

Metro-level analysis is restricted to the 50 largest U.S. metropolitan statistical areas by transaction volume. Pre-pandemic benchmarks use 2017–2019 averages. All figures reflect transactions recorded through June 2026.

About Realtor.com^®
For over 30 years, Realtor.com^® has connected buyers, sellers, and renters with trusted insights, professional guidance and powerful tools to help them find their perfect home. Recognized as the No. 1 real estate site REALTOR® agents recommend, Realtor.com® delivers consumer connections and a robust suite of marketing tools to support business growth. Realtor.com^® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc.

Media Contact: Mallory Micetich, press@realtor.com 

View original content:https://www.prnewswire.com/news-releases/small-investors-take-over-as-institutional-buyers-retreat-302914595.html

SOURCE Realtor.com

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What share of home purchases did investors make in Realtor.com’s first-half 2026 report?

Investors accounted for 10.7% of home purchases in the first half of 2026. Their share remained close to recent years, although the number of homes they bought fell to its lowest first-half level since 2020.

How did small and institutional investors differ in Realtor.com’s 2026 Investor Report?

Small investors accounted for 66.2% of investor purchases, their highest share in at least 15 years, while large and mega investors sold more homes than they bought. Small and medium investors remained net buyers in the first half of 2026.

How does Realtor.com’s 2026 Investor Report define investor size?

Investor size is based on cumulative purchases across the full dataset, not purchases in a single year. Small investors have 1–10 purchases, medium investors 11–50, large investors 51–350, and mega investors 351 or more.

Which transactions does Realtor.com’s 2026 Investor Report include?

The report identifies corporate buyers of residential properties with occupancy codes indicating absentee or tenant-occupied use, excluding builder, relocation service, iBuyer and financial institution transactions. Figures cover transactions recorded through June 2026; metro analysis covers the 50 largest U.S. metropolitan statistical areas by transaction volume.

Does Realtor.com’s 2026 Investor Report count investor purchases and sales the same way?

Investor buyer and seller counts use different exclusions. Seller counts exclude disposals of foreclosures and newly constructed properties. Buyer counts include all qualifying property types regardless of foreclosure or new-construction status.