Small Investors Gain Share as Institutional Buyers Retreat in Housing Market
In the first half of 2026, small investors increased their share of home purchases while large and mega investors pulled back, according to Realtor.com®'s Investor Report. Overall investor activity cooled slightly but remained stable at around 10.7% of total home sales. The shift reflects a broader market slowdown rather than an outright retreat by all types of investors. Cash transactions remain more common among investors compared to the general buyer population, though their share has declined from recent peaks due to softer market conditions and rising inventory levels. Small investors now account for 66.2% of investor purchases—the highest in at least 15 years—while large and mega investors sold more homes than they bought. Investor activity is concentrated in affordable markets like the Midwest and Sun Belt, where lower prices and ample inventory make entry easier. Cities such as Memphis, St. Louis, and Kansas City saw over one-fifth of home purchases made by investors.
Topics: cash purchases housing market investment activity market trends