In the second quarter of 2025, investors accounted for an unprecedented 33 percent of all single-family home purchases across the United States—the highest level recorded in at least the past five years. The figure highlights the increasingly dominant role that both institutional firms and smaller-scale local investors are playing in shaping the housing market. For realtors, this shift represents both a complication and an opening, as the traditional landscape of homebuying continues to evolve.
Investor activity has been rising steadily over the past several years, driven by a combination of factors including rising rents, persistent housing shortages, and the appeal of real estate as a hedge against inflation. Large institutional buyers, often backed by private equity and asset managers, continue to purchase portfolios of single-family homes, while smaller local investors are competing aggressively for properties they can flip, rent, or renovate. This growing share of transactions has had a marked impact on competition, pricing, and accessibility in markets nationwide.
The surge in investor purchases has accelerated bidding wars in many cities. Homes are selling faster, often with multiple offers within days of being listed. Realtors report that properties attractive to investors—such as those in working-class neighborhoods or homes in need of renovation—are particularly prone to quick turnarounds. For sellers, this dynamic can be a boon, yielding higher sales prices and fewer concessions. For realtors working on the listing side, investor demand often translates into smoother, quicker transactions.
But the trend is not without its drawbacks. Traditional buyers, especially first-time homeowners, are increasingly finding themselves squeezed out of the market. With investors able to make cash offers and move quickly, families relying on mortgage financing face a competitive disadvantage. In some metro areas, the investor presence has raised concerns that ownership opportunities for younger and middle-income households are being diminished, pushing more people into long-term renting. For realtors, this dynamic requires a recalibration of strategy: balancing the needs of individual buyers against the realities of an investor-driven market.
Industry experts suggest that realtors who adapt to these conditions will be best positioned to thrive. Building relationships with institutional investors and local property groups is becoming an important part of the business. Realtors who can connect buyers with off-market opportunities, or who can anticipate investor preferences, may be able to secure repeat clients in ways that traditional buyer representation does not always allow. Additionally, many realtors are expanding their service offerings to include property management, renovation consulting, and turnkey solutions. By doing so, they become not just transaction facilitators, but ongoing partners for investors seeking long-term returns.
Pricing expertise and speed of execution are also increasingly valuable skills. In a market where homes can sell within days, realtors must be precise in assessing value and agile in managing negotiations. The ability to close quickly, coordinate inspections, and handle paperwork efficiently has become a competitive differentiator. For realtors who can balance efficiency with strong client advocacy, the current environment may provide new opportunities to showcase their value.
The rise of investors in the housing market also reflects broader structural issues. Limited housing supply, coupled with strong rental demand, has created conditions that encourage large-scale investment. While policymakers have debated measures to limit institutional ownership of single-family homes, for now the investor presence shows little sign of abating. Realtors, positioned at the intersection of retail buyers and capital-driven purchasers, will play a key role in navigating these shifts.
Looking ahead, the investor share of purchases may remain elevated as long as supply lags demand. For traditional buyers, this underscores the importance of working with agents who can help them compete in a crowded environment. For realtors themselves, the ability to serve both sides of the market—retail homeowners and investors—may become not just an advantage, but a necessity.
As the housing market continues to evolve, one thing is clear: the realtor’s role is changing. Those who can bridge the gap between individuals searching for their first home and institutions building property portfolios will likely find themselves in higher demand, operating at the forefront of one of the most significant transformations in U.S. real estate in years.
