One reason home prices have skyrocketed this decade is there’s so much competition for a limited supply of available homes. This is especially true in markets where everyday house hunters have to compete against investors looking to profit from their purchases.
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The number of investors gobbling up homes remains at “historically high levels” in 2025, and is expected to stay that way for the foreseeable future, according to a new report from Cotality, a California-based provider of real estate and other financial data.
Investors accounted for 29% of all U.S. single-family homebuyers during the second quarter, the report noted. That was up from 25% a year prior, and represents a major increase from five years ago when investors accounted for less than 15% of all purchases.
Which cities rank the highest for investor activity? About half are scattered across the Sunbelt states, as those regions continue to draw more residents. But you’ll also find high-ranking cities in all parts of the country.
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These Cities Rank the Highest
For its report, Cotality analyzed housing patterns across the country to determine which homes were acquired by investors and which were acquired by non-investors. Investors were broken down into the following categories:
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Small: Fewer than 10 properties
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Medium: From 10 to 99 properties
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Large: From 100 to 999 properties
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Mega: From 1,000+ properties
Not surprisingly, major metro areas dominate the list of places where investors are most active. These were the 20 highest-ranked cities for investor purchases from January through June 2025, according to Cotality:
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Dallas: 21,842 (homes bought)
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Houston: 18,324
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Atlanta: 15,536
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Phoenix: 12,640
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Los Angeles: 11,130
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Chicago: 10,423
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New York: 9,395
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Tampa, Florida: 7,400
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San Antonio: 7,337
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Philadelphia: 7,239
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Washington, D.C.: 6,750
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Riverside, California: 6,749
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Kansas City, Missouri.: 6,334
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St. Louis, Missiouri: 6,076
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Seattle: 5,930
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Las Vegas: 5,803
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Denver: 5,772
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Detroit: 5,240
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Charlotte, North Carolina: 5,102
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Indianapolis: 4,983
Medium-sized investors have driven the recent increase in investor activity, as their market share rose to 10% in June 2025 from 10% in June 2024. Small investors represent the most common investor type, at a 14% share.
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What’s Driving Investor Activity?
Investors are “stepping in” to meet strong demand for rental housing in an environment where first-time homebuyers are being sidelined by high home prices and elevated mortgage rates, Cotality noted.
The median price of houses sold in the U.S. was $410,800 during the second quarter, according to Federal Reserve data. Although that figure has been trending lower the past couple of years, prices are still up by more than 25% since the start of the decade.
With everyday buyers priced out of many markets, deep-pocketed investors are better positioned to purchase available homes and turn them into money makers.
“Investors expanded their market presence significantly in 2025, building on historically high levels,” Thom Malone, principal economist at Cotality, said in an Aug. 28 press release. “This demonstrates their resilience in a high-price, high-rate environment. As these adverse conditions are expected to persist, investors are well positioned to meet rental demand. Their tendency to buy with all cash means high interest rates are less of a deterrent. Plus, current high prices can be offset by strong rental returns.”
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This article originally appeared on GOBankingRates.com: Investors Now Buy 1 in 3 US Homes — Top 20 Cities Ranked