In 2024, small investors have become a dominant force in the U.S. housing market. This year, they purchased a record number of homes, capturing a larger share of investor-driven purchases. The trend marks a significant shift, as large investors dominate from the market.
According to a report by Realtor.com, small investors, defined as those who buy fewer than 10 homes, accounted for 59.2% of all investor purchases. This represents an increase of 3.7% from the previous year. In total, these small investors bought 361,900 homes in 2024, a new record. In contrast, large investors, who typically acquire 50 or more homes, saw a sharp decline in activity. Their purchases fell by 8.7%, dropping to 132,500 homes, the lowest level in six years.
The growing share of small investors has made a noticeable impact on the market. For the first time since tracking began, 10.8% of all sellers in the single-family housing market were investors. This marks a slight increase from 10.1% in 2023. As investor activity rises, entry-level buyers find themselves facing less competition, with fewer large investors bidding on homes.
Interestingly, all-cash transactions, a hallmark of investor buying, have lost some of their appeal. Although investors often prefer cash deals, debt-financed transactions are now more common. Small investors decreased their all-cash purchases from 65.6% in 2023 to 62% in 2024. Large investors dominate to follow suit, dropping their cash purchases from 73.2% to 68.9%.
Investor activity has favored specific regions. States like Missouri and Oklahoma have seen a surge in investor interest. Meanwhile, Kansas has attracted more buyers, and Georgia has seen an increase in seller activity. Hawaii, Montana, and Washington, D.C., have witnessed more investor buyers than sellers. On the other hand, California, Minnesota, and Oregon have had more sellers than buyers.
Among the nation’s largest metros, Springfield, MO, Memphis, TN, and Wichita, KS have recorded the highest shares of investor buyers. Meanwhile, Memphis, Oklahoma City, and Springfield lead the way for investor sellers.
This shift in market dynamics reflects broader changes in the housing sector. With inventory levels improving and home price growth slowing down, investors are adjusting their strategies. The report suggests that rents are also easing, further influencing investor activity.
As the market continues to stabilize, small investors are emerging as a key force in reshaping the housing landscape. They are outpacing large players and are more active than ever in the real estate space.
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