New data from Realtor.com reveals that small-scale investors are dominating the purchase of U.S. homes — and they’re far more prevalent than most realize. According to the most recent research, investors owning fewer than 11 properties account for more than 90 % of the homes held by the investor-owned housing sector. (Realtor)
This trend upends the common perception that large institutional firms are the principal buyers in the residential market. Instead, smaller landlords—those with just a handful of properties—are increasingly the ones buying homes, particularly in the single-family segment. (Realtor)
Several factors explain this shift. Traditional owner-occupant buyers have been constrained by high mortgage rates and sky-high home prices, reducing their participation. In that vacuum, smaller investors have stepped in, often with fewer regulatory hurdles and more flexibility. At the same time, larger institutional investors appear to be stepping back, in part because elevated rates and competition have squeezed returns. (Realtor)
The practical upshot: the housing market is increasingly shaped by everyday investors rather than big firms. That has implications for housing supply, pricing and the availability of homes for owner-occupants. When smaller landlords capture a large share of purchases, competition for affordable homes intensifies—and first-time buyers may find fewer opportunities. At the same time, because these investors tend to hold fewer properties, they may be less likely to treat housing like a large-scale rental business, which could mean different neighborhood impacts compared to institutional owners.
In sum: homeowners and policymakers alike should recognize that the face of investor-activity in housing is changing. It’s not giant firms buying up blocks of homes so much as smaller investors quietly accumulating properties—one house at a time—yet collectively controlling a dominant share of investor-owned homes. (Realtor)
Check out the latest market statistics in the Denver Metro area which shows there are over 12,000 listings looking for new owners and if buyers or small level investors are looking for an opportunity to buy their next home this is likely the perfect time!
