Are Big Investors Really Buying Every Home?
It's hard to scroll online lately without seeing some version of this claim: "Big investors are buying up all the homes."
And honestly, if you're a homebuyer who's lost out on a few offers lately, that idea probably sounds believable. When homes are expensive and competition is tight, it's easy to assume giant companies are scooping everything up behind the scenes.
But here's the thing: what people assume is happening and what the data actually shows aren't always the same.
Let's look at what's really happening with large institutional investors in today's housing market because the numbers tell a much different story than the headlines.
The Number Most People Won't See Online
Let's start with the most important stat. According to John Burns Research & Consulting (JBREC), large institutional investors, those that own 100 or more single family homes, made up just 1.2% of all home purchases in Q3 of 2025.
That's it. Out of every 100 homes sold nationally, only about 1 went to a large institutional investor.
And here's an important point that often gets missed: that level of investor activity is very much in line with historical norms. It's not unusually high, and it's actually well below the recent peak of 3.1% back in 2022, which itself was still a small share of the overall market.
So while it can feel like big investors are everywhere, nationally, they're a very small part of overall home sales. In most markets, individual buyers and families still make up the vast majority of home purchases.
Why Investor Activity Gets So Much Attention
There are two main reasons this topic dominates headlines:
Investor Activity Isn't Spread Evenly
Investors are more active in certain markets, which can make competition feel intense for homebuyers in those areas. As Lance Lambert, Co-Founder of ResiClub, explains:
> "On a national level, 'large investors', those owning at least 100 single family homes, only own around 1% of total single family housing stock. That said, in a handful of regional housing markets, institutional and large single family landlords have a much larger presence."
In some markets, certain neighborhoods do attract more investor interest than others. But even in those pockets, the data doesn't support the narrative that Wall Street is buying everything.
The Term "Investor" Is Broad
Part of what makes the share of purchases bought by investors sound so big is because many headlines lump large Wall Street institutions together with small, local investors, like your neighbor who owns one or two rental homes. But those are very different buyers.
In reality, most investors are small, local owners, not massive corporations. And when all investors get grouped together in the headlines as a single stat, it inflates the number and makes it seem like big institutions are dominating the market (even though they're not).
What's Actually Driving a Competitive Market Nationally
If big investors aren't the problem, why does the housing market feel so competitive in so many places?
The real answer comes down to supply and demand, and years of underbuilding (see NAR and Zillow).
That's not because investors are hoarding properties. It's because:
There aren't enough homes for sale. The US has faced a housing shortage for years. New construction hasn't kept pace with population growth and household formation (see NAR).
Mortgage rate lock in effect. Many current homeowners locked in historically low mortgage rates in 2020 and 2021. They're reluctant to sell and give up those rates, which means fewer homes hit the market (see Freddie Mac).
Demand is still strong in many areas. Even when rates rise, household formation and life changes (new jobs, growing families, downsizing) keep buyers in the game (see NAR).
First time homebuyers competing. Millennials have been a major share of buyers in recent years, adding demand pressure (see NAR).
What This Means for Buyers
If you're a first time homebuyer, this should actually be encouraging news. Yes, the market is competitive. But you're not competing against faceless corporations with unlimited cash in most transactions.
You're competing against other families, other individuals, and other people who want the same thing you do: a place to call home.
Here's what that means practically:
Don't give up. The competition is real, but it's not rigged against you.
Get pre-approved. In a competitive market, showing sellers you're a serious, qualified buyer makes a huge difference.
Work with a great agent. Someone who knows your target area can help you find opportunities before they hit the major listing sites.
Be prepared to act quickly. When inventory is low, the best homes don't stay on the market long.
What This Means for Sellers
If you're thinking about selling your home, the data is also good news for you.
The tight inventory and strong demand mean well-priced homes continue to sell quickly, and often above asking price. You're selling into a market driven by real buyers who want to live in your home, not just investors looking for a quick flip.
That said, pricing strategy still matters enormously. Even in a seller's market, overpricing can lead to your home sitting too long and eventually selling for less than it should have.
Call me at 860-985-4363 or visit melindatherealtor.com for a free consultation. Never too busy for you to be my #1 client.
Separating Noise from Reality
Yes, big investors exist. Yes, they buy homes. But nationally, they're responsible for a very small share of total purchases, far smaller than most people assume.
The bigger challenges around affordability have much more to do with supply, demand, and years of underbuilding than with large institutions competing against everyday buyers.
That's why it's so important to separate noise from reality, especially if you're trying to decide if now is the right time to move.
Frequently Asked Questions
Are institutional investors buying all the homes?
No. Nationally, large institutional investors (those owning 100+ homes) accounted for only 1.2% of home purchases in Q3 2025. Investor interest is real in some areas, but it represents a small fraction of overall sales.
Why does it feel like I'm competing against investors?
Many housing markets are competitive due to low inventory and many homeowners holding onto low mortgage rates. This creates multiple offer situations, but you're primarily competing against other individual buyers, not corporations.
What is an institutional investor in real estate?
An institutional investor is typically defined as an entity that owns 100 or more single family homes. These are different from small, local investors who might own just one or two rental properties.
Is now a good time to buy a home?
That depends on your personal situation. While the market is competitive, the majority of your competition comes from other individual buyers. Working with a knowledgeable local agent can help you navigate the market effectively.
Will investor activity increase in the future?
Market conditions change, but current data shows institutional investor activity is below its 2022 peak and in line with historical norms. Supply and demand fundamentals will continue to be the primary drivers of the housing market.
Sources
John Burns Research & Consulting (JBREC) – Institutional Investor Share of Home Purchases
https://www.jbrec.comNational Association of Realtors® – Housing Supply, Buyer Competition & Investor Activity
https://www.nar.realtor/research-and-statisticsFreddie Mac – Mortgage Rate Lock-In Effect & Inventory Impact
https://www.freddiemac.com/researchZillow Research – Investor Trends & Housing Market Dynamics
https://www.zillow.com/researchResiClub (Lance Lambert) – Institutional Ownership Analysis
https://www.resiclubanalytics.com
Ready to talk about what's really happening in your local market? Sometimes a little context makes all the difference. Call me at 860-985-4363 or visit melindatherealtor.com for a free consultation. Never too busy for you to be my #1 client.
