Real Estate Investors Account For 33% of Q2 2025 Home Purchases According to Q2 2025 Investor Pulse™ Report From BatchData

Investors own 20% of residential homes in the U.S.
Smallest investors dominate, with over 90% market share.

PHOENIX, Sept. 25, 2025 /PRNewswire/ -- Real estate investors purchased 33% of all single-family residential properties sold in the second quarter of 2025, the highest percentage of investor purchases in the last five years according to the Q2 2025 Investor Pulse™ Report from BatchData. The percentage of homes purchased by investors increased from just under 27% in the first quarter of 2025 and rose over seven points from the 25.7% of residential homes purchased by investors in 2024. Investors continue to own roughly 20% of the 86 million single-family residential homes in the country.

"Interestingly, while the percentage of single-family homes purchased by investors rose to a five-year high, the actual number of homes purchased during the second quarter of 2025 was 16,000 fewer than a year ago," said BatchData Co-Founder and Chief Innovation Officer Ivo Draginov. "So the relatively high percentage of home purchases by investors is at least partly due to overall home sales being weaker in Q2 2025 than they were in Q2 2024."

The Investor Pulse Report is a quarterly publication providing strategic market intelligence on investor activity in U.S. single-family residential housing. The report analyzes ownership patterns, transaction trends, pricing strategies, and geographic distribution to deliver actionable insights for real estate professionals, policymakers, and market participants. The report is prepared using data provided by BatchData and other sources by business intelligence firm CJ Patrick Company.

Mom-and-Pop Investors Continue to Dominate Investor Activity
Small investors who owned between one and five properties held 87% of the single-family homes owned by investors; those owning six to 10 properties owned another 4%. So contrary to popular opinion, the real estate investment market is not controlled by large institutional investors. In fact, the largest investors – those owning 1,000 or more properties – account for just 2% of all investor-owned homes. Significantly, the largest investors appear to be pruning their inventory rather than adding to it: Q2 2025 was the sixth consecutive quarter where the largest investors sold more properties (5,801) than they bought (4,069).

Three Largest States Have Highest Number of Investor Homes
Texas has the highest number of investor-owned homes at 1.46 million, followed by California with 1.33 million and Florida with 1.1 million. These high numbers align with population: California is the most populous state, with nearly 40 million residents; Texas has the second-highest population at over 31 million; and Florida is next in line with more than 23 million residents.  

But the states with the highest percentage of single-family homes owned by investors are tourist hotspots Hawaii (26%) and Alaska (27%), Montana (31%), and Maine (31%). Other states with higher-than-average percentages of investor-owned homes include highly affordable and landlord-friendly Arkansas, Mississippi, and West Virginia; and states that have benefitted from recent population migration, Idaho, Vermont and Wyoming.

Investors Continue to Focus on Lower-Priced Properties
In Q2 2025, investors paid an average of $455,481 per home—well below the $512,800 average market price and $410,800 median, indicating a continuing focus on value-oriented segments, such as smaller homes or homes in less expensive markets. Large investors operate in an even lower price tier, averaging $279,889 for purchases and $334,787 for sales. Institutional investors have focused on geographies in the Midwest and South where both purchase and sales prices are well below national numbers.

While investors continue to look for less expensive properties when purchasing homes, the average purchase price in the second quarter was the highest average price in the past six quarters, topping the $389,562 average price in the second quarter of 2024. The average sales price was also the highest in this series, surpassing the $387,633 average sales price in the same quarter last year.

Investors Often Sell to Other Investors

Investors focus on lower-priced homes – very often in need of repairs – in more affordable markets, and just over 85% of the time buy those properties from a variety of sources: lenders, foreclosure auctions, government entities, and from homeowners. But when selling their properties, they routinely transact with other investors: just over 53% of investor sales were to other investors in Q2 2025, slightly lower than the 55% sold to other investors in the prior two quarters, but just higher than the 52% average for all of 2024.

The largest investors appear to operate in a more closed ecosystem, with 47% of the homes they purchased in the second quarter coming from other investors, and over 66% of the properties they sold bought by other investors.

"It's worth pointing out that while investors purchased more homes than they sold in the second quarter, they did sell over 104,000 homes, with 45% of those sales going to traditional homebuyers," Draginov noted. "So in addition to the important role investors continue to play providing necessary liquidity to a weak home sales market, they're also bringing much-needed inventory – both rental properties, and homes for owner-occupants – to the market."

About BatchData
Founded in 2021, BatchData is a comprehensive real estate data platform providing enterprise-grade APIs with access to 1,000+ data points for over 150 million U.S. properties. Serving businesses from startups to Fortune 500 companies, BatchData delivers robust lead generation, skip tracing, data enrichment, and seamless integrations with real-time updates and industry-leading accuracy. Unlike static data aggregators, BatchData's in-house data science team enriches datasets from multiple tier-one providers while leveraging real-time feedback from over 20,000 BatchData users to maintain the highest data quality standards in the industry. For more information, visit www.BatchData.com.

About CJ Patrick Company
Founded in 2019, CJ Patrick Company is a Market Intelligence and Business Advisory firm working with companies in the real estate and mortgage industries. Visit www.cjpatrick.com for more information.

About the Investor Pulse™ Report
The Investor Pulse Report is a new quarterly publication providing strategic market intelligence on investor activity in U.S. single-family residential housing. The report analyzes ownership patterns, transaction trends, pricing strategies, and geographic distribution to deliver actionable insights for real estate professionals, policymakers, and market participants. The report is prepared using data provided by BatchData and other sources by business intelligence firm CJ Patrick Company. More detailed methodology available upon request.

Contact:           Rick Sharga
                        CJ Patrick Company
                        (949) 322-4583
                        [email protected] 

SOURCE BatchData