Investors Now Buy 27% of U.S. Homes Amid Market Slump

As homebuyers across the United States continue to wrestle with rising mortgage rates and stubbornly high home prices, a different kind of buyer is stepping in: real estate investors. According to a recent report from housing data provider BatchData, investors accounted for nearly 27% of all home purchases in the first quarter of 2025, marking the highest share in at least five years.

While the total number of homes investors bought is about 265,000, which is only slightly higher than a year ago, their share of the market has grown sharply. In previous years, from 2020 to 2023, investors made up an average of just 18.5% of homebuyers. The shift is less about investors making a big leap, and more about traditional buyers pulling back.

For many everyday Americans, buying a home has become a bigger challenge than ever. Mortgage rates have remained elevated since they started rising in early 2022, and while the pace of home price growth has slowed, prices themselves haven’t come down much. For first-time buyers and middle-income families, the cost of ownership is simply too high.

In contrast, many investors are well-positioned to take advantage of this market. With access to cash, better financing options, or the ability to leverage existing home equity, they can move quickly on properties that are sitting longer on the market. Slower sales and increased inventory have created a window of opportunity that investors are readily stepping through.

This trend doesn’t necessarily mean a surge of investment-driven speculation, but it does show how uneven the current housing landscape has become. Traditional buyers are struggling to compete, while investors who may be turning these homes into rentals or reselling them later are maintaining the momentum of home sales.

The U.S. housing market has been in a slump since 2022, with last year’s sales dropping to their lowest point in nearly three decades. So far, 2025 hasn’t shown a strong rebound. Many prospective buyers remain on the sidelines, waiting for mortgage rates to fall or prices to cool further, which has happened in a meaningful way.

In the meantime, investors are filling the gap. Whether that brings long-term stability or adds to affordability concerns remains to be seen. For now, one thing is clear: the market is shifting, and investors are playing an increasingly important role in shaping its direction.