Slow market makes homebuying ‘less attractive’ for investors
The share of investor home purchases has changed little from previous years, but the number of transactions has fallen, according to a new Realtor.com report.
While the pace of investor home purchases has slowed amid the stalled housing market, a new report finds there's also been a shift in the type of investors that are still buying.
Small investors outpace large corporate buyers: Small investors — those who buy no more than 10 homes — are making up a greater share of investor purchases while more large and mega investors — defined as those who buy 51 to 350 homes and 351 or more homes, respectively — are selling, according to Realtor.com's 2026 Investor Report. Small investors accounted for 66.2% of all investor home purchases in the first half of 2026, the highest share in at least 15 years.
Overall, investors accounted for 10.7% of home purchases in the first six months of the year, a share that is little changed from previous reports, Realtor.com found. However, the total number of investor home purchases dropped to the lowest level for the first half of the year since 2020 amid the cooling market.
The Midwest and Sun Belt tend to have the highest concentration of investor purchases, as these regions typically offer better affordability and, in some areas, more inventory.
Market conditions make buying 'less attractive': The first half of 2026 was marked by debate over legislation that became the 21st Century ROAD to Housing Act. Part of the debate involved discussions about restricting mega investor housing market activity. The restrictions that were ultimately included in the law are set to take effect in January 2027.
While the uncertainty leading up to the bill's enactment may have prompted some mega investors to sell, that trend had already started, according to Hannah Jones, senior economist at Realtor.com. "The retreat by mega investors from their pandemic-era peak was well under way before the legislation, as softer conditions and less certain returns made buying less attractive," Jones said in an email to Real Estate News.
Cash is still king: Nearly 56% of investor home purchases were all-cash transactions, according to the report. That's below the 2021 and 2022 peak of about 68% but still well above the total share of buyers who pay entirely in cash (around 30%).
"Cash still sets investor purchases apart, even though its use has eased from recent highs," Jones said. "That's one sign the market has moved away from its pandemic-era intensity, even as investors remain an important part of home buying."