Small investors make gains as institutional homebuyers retreat

Investors accounted for 10.7% of home purchases in the first half of 2026, close to their share in recent years, but the number of homes they bought fell to its lowest first-half level since 2020, according to Realtor.com’s 2026 Investor Report. Small investors strengthened their hold while large and mega investors pulled back. Investor selling eased slightly, but its share of home sales remained above pandemic- and pre-pandemic-era levels. “Investor buying eased, but the bigger shift is who is buying,” said Hannah Jones, senior economist at Realtor.com. “Small investors made up 66.2% of investor purchases, while large and mega investors sold more homes than they bought.” Investor activity remained concentrated in the Midwest and Sun Belt. 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,” Jones said. “Affordability supports activity in the Midwest, while available inventory and softer prices create opportunities in parts of the Sun Belt.” In the first half, 55.5% of investor purchases were all-cash, compared with 30% of purchases market wide. The investo...