Small Investors Take Over as Institutional Buyers Retreat
Investor Activity Cooled in the First Half of 2026, but its Overall Share Changed Little as Buying Shifted Toward Smaller Investors, According to a Realtor.com® Report
AUSTIN, Texas (October 21, 2026) – Investors are not simply disappearing from the housing market; their presence is changing. In the first half of 2026, smaller investors strengthened their hold while large and mega investors pulled back, according to the Realtor.com®’s 2026 Investor Report. Cash remains a defining feature of investor purchases, yet the investor and overall market all-cash share fell in the first half of 2026 as climbing inventory and softer market conditions eased all-cash buying.
Investors accounted for 10.7% of home purchases, close to their share in recent years. However, the number of homes they bought fell to its lowest first-half level since 2020. Investor selling eased slightly as well, but its share of home sales remained above pandemic- and pre-pandemic-era levels. Together, the trends point to a cooler market, not a uniform retreat by every kind of investor.
“Investor buying eased, but the bigger shift is who is buying,” said Hannah Jones, senior economist, Realtor.com®. “Small investors made up 66.2% of investor purchases, while large and mega investors sold more homes than they bought.”
Cash remains a hallmark of investor buying
Investors still rely on cash far more often than buyers overall, in part because investment-property loans can bring higher rates, down-payment requirements and restrictions. Investors also often have greater access to capital. In the first half, 55.5% of investor purchases were all-cash, compared with 30.0% of purchases marketwide. That gap has narrowed as the investor cash share has fallen from a recent peak of roughly 68% in 2021 and 2022.
“Cash still sets investor purchases apart, even though its use has eased from recent highs,” said Jones. “That’s one sign the market has moved away from its pandemic-era intensity, even as investors remain an important part of home buying.”
A different mix of investors is driving activity
Small investors accounted for 66.2% of investor purchases, their highest share in at least 15 years. Large and mega investors, by contrast, sold more homes than they bought. Their purchase activity has eased, while small and medium investors remained net buyers so far this year.
The price mix offers another clue about where investor activity sits: the typical investor purchase price remained 22.4% below the non-investor median, even as the gap narrowed. The report notes that this pattern could reflect small investors competing with entry-level buyers or focusing on lower-priced markets; the figures do not distinguish between the two.
Affordable Midwest and inventory-rich Sun Belt draw investors
Investor activity remained concentrated in the Midwest and Sun Belt, though the draw differs by region. The Midwest offers affordability, while ample inventory and softening prices in the Sun Belt make it easier for investors to enter those markets. Memphis, St. Louis and Kansas City each saw investors account for about one in five home purchases in the first half of 2026.
“Investor activity reflects local market conditions,” said Jones. “Affordability supports activity in the Midwest, while available inventory and softer prices create opportunities in parts of the Sun Belt.”
Markets with Largest Investor Purchase Footprints
Metro
2026 H1 Investor Buyer Share
YY
Median Purchase Price
Median Investor Purchase Price
Memphis, TN-MS-AR
20.5%
-3.2%
$250,000
$126,500
St. Louis, MO-IL
20.0%
-0.7%
$264,667
$125,000
Kansas City, MO-KS
19.1%
-1.1%
$340,154
$250,000
Wichita, KS
18.0%
0.3%
$241,550
$185,000
Toledo, OH
17.3%
4.1%
$199,900
$110,000
Dallas-Fort Worth-Arlington, TX
16.5%
1.3%
$375,000
$292,500
Indianapolis-Carmel-Greenwood, IN
16.1%
1.2%
$295,000
$168,250
Cleveland, OH
15.7%
-0.2%
$232,500
$120,000
Oklahoma City, OK
15.5%
-2.6%
$250,000
$140,000
San Antonio-New Braunfels, TX
15.3%
-1.3%
$298,640
$218,750
Markets with Smallest Investor Purchase Footprints
Metro
2026 H1 Investor Buyer Share
YY
Median Purchase Price
Median Investor Purchase Price
Colorado Springs, CO
3.6%
-1.1%
$459,000
$311,300
Portland-Vancouver-Hillsboro, OR-WA
4.9%
-0.2%
$549,000
$474,000
Oxnard-Thousand Oaks-Ventura, CA
5.7%
0.0%
$895,000
$900,000
Bridgeport-Stamford-Danbury, CT
5.7%
-1.5%
$684,900
$530,000
New Haven, CT
5.7%
-2.4%
$405,000
$280,000
Spokane-Spokane Valley, WA
5.8%
0.4%
$420,000
$230,000
Hartford-West Hartford-East Hartford, CT
5.8%
-1.7%
$385,000
$250,000
Stockton-Lodi, CA
5.9%
0.5%
$515,000
$328,000
Seattle-Tacoma-Bellevue, WA
6.0%
-0.2%
$737,500
$757,500
Port St. Lucie, FL
6.0%
-0.2%
$390,000
$283,500
Methodology
This report uses deed transaction data to identify corporate real estate investors active in the residential market. Investors are defined as entities purchasing single-family homes, condominiums, townhomes, and related residential property types using a corporate structure — limited liability companies, limited partnerships, general partnerships, trusts, and REITs — with occupancy codes indicating absentee or tenant-occupied use. Builder, relocation service, iBuyer, and financial institution transactions are excluded.
Investors are categorized by total purchase count across the full dataset: small (1–10 purchases), medium (11–50), large (51–350), and mega (351 or more). Because these categories are based on cumulative all-time activity, an entity’s classification reflects its full history in the data rather than its activity in any single year.
Investor seller counts exclude transactions where the seller was disposing of a foreclosure or newly constructed property, ensuring that distressed and new-construction sales are not attributed as investor dispositions. Investor buyer counts include purchases of all qualifying property types regardless of foreclosure or new-construction status, consistent with the goal of capturing bottom-fishing and opportunistic acquisition behavior alongside standard buy-and-hold activity.
Metro-level analysis is restricted to the 50 largest U.S. metropolitan statistical areas by transaction volume. Pre-pandemic benchmarks use 2017–2019 averages. All figures reflect transactions recorded through June 2026.
