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Investor home sales reached a record high in 2024, with 10.8% of all homes sold belonging to real estate investors — the highest share recorded since data tracking began — according to a report released Tuesday by Realtor.com.
The rise in investor sales coincided with a modest uptick in investor purchases, which accounted for 13% of U.S. home sales last year.
Although that figure marks a slight increase from 2023, it remains below the 2022 peak share of 13.3%. The gap between investor purchases and sales is now at its smallest level since 2019, reflecting a cooling in net investor activity.
“Investor trends signal a transition,” Danielle Hale, chief economist at Realtor.com, said in a statement. “Nationwide, investors picked up more homes on net in 2024, as smaller investors were a growing majority of investor buyers.
“But with investor selling at a new high, the market saw the smallest net investor buying activity in five years, lessening one of the notable headwinds for entry-level buyers who often compete with investors.”
Small investors dominate, cash sales decline
One of the most notable shifts in 2024 was the increasing role of small investors — defined as those who have purchased fewer than 10 homes.
These investors accounted for 59.2% of investor home purchases, the largest share on record. Meanwhile, large investors — those with 50 or more home purchases — saw their share fall to 21.7%, the lowest level since 2007.
In total, small investors bought 361,900 homes, a 3.7% increase from the previous year. Large investor purchases declined 8.7% year over year to 132,500 homes, the lowest number since 2018.
Despite a broader rise in cash purchases across the housing market, investor reliance on cash declined in 2024. All-cash sales among investors dropped to their lowest point since 2008, although investors still used cash more often than the typical homebuyer.
Small-investor cash purchases fell from 65.6% in 2023 to 62% in 2024 — the lowest share since 2008. Large investors saw a similar decline, dropping from 73.2% to 68.9%, to mark their lowest rate since 2015.
Regional investment trends mixed
Investor activity varied widely across the country. Missouri (21.2%), Oklahoma (18.7%) and Kansas (18.4%) had the highest shares of investor purchases. On the seller side, Oklahoma and Missouri led the way (each with shares of 16.7%), followed by Georgia (15.9%).
Some states saw a net inflow of investor activity with more buyers than sellers. These include Hawaii, Montana and Washington, D.C. In contrast, California, Minnesota and Oregon saw more investors exiting the market, contributing to a net increase in available homes.
“Investor strategies vary across the U.S.,” said Hannah Jones, senior economic research analyst at Realtor.com. “In some states like Hawaii, Montana and Washington, D.C., investors are still net buyers, competing with first-time buyers for entry-level housing inventory.
“This contrasts with markets like California, Minnesota and Oregon, where investors are net sellers, creating opportunities for aspiring homeowners.”
Delaware, Ohio and Washington, D.C., saw the largest year-over-year increases in investor purchases. Investor selling activity rose most sharply in Mississippi, Nevada and South Dakota.
Metro areas with highest investor activity
Among the 150 largest metropolitan areas, the highest level of investor purchases in 2024 were found in Springfield, Missouri; Memphis, Tennessee; and Wichita, Kansas. Memphis, Oklahoma City and Springfield topped the list for investor sales.
Investors added the most demand in metro areas like Miami, Pittsburgh and New York. On the other hand, they contributed to supply the most in Sacramento, Minneapolis and Portland, Oregon, where investor sales outpaced purchases.
The data points to a shifting investment landscape where small-scale buyers are playing a larger role, while overall investor pressure on housing supply may be easing — at least for now.
