Are Investors Really Taking Over the Housing Market? Let’s Look at the Facts

If you’ve spent any time online lately, you’ve probably seen the claim:

“Big investors are buying up all the homes.”

And if you’re a buyer who’s lost out on multiple offers, that narrative can feel very real. When prices are high and competition is stiff, it’s easy to assume large corporations are quietly scooping up everything behind the scenes.

But what feels true and what the data actually shows aren’t always the same.

So let’s step back and look at what’s really happening with large institutional investors in today’s housing market—because the numbers tell a very different story than the headlines.

The Stat That Rarely Gets Shared

According to John Burns Research & Consulting (JBREC), large institutional investors—defined as those owning 100 or more homes—accounted for just 1.2% of all home purchases in Q3 of 2025.

That means out of every 100 homes sold nationwide, only about one went to a large investor.

Even more important: this level of investor activity is completely in line with historical norms. In fact, it’s well below the recent peak of 3.1% in 2022—which itself was still a relatively small slice of total home sales.

So while it can feel like investors are everywhere, nationally speaking, they represent a very small portion of the market.

Why It Feels Bigger Than It Is

So why does this topic get so much attention? There are two big reasons.

1. Investor activity isn’t evenly distributed.While large investors make up a small share nationally, they tend to be more concentrated in certain markets. In those areas, competition can feel especially intense. As Lance Lambert, Co-Founder of ResiClub, explains:

“On a national level, ‘large investors’—those owning at least 100 single-family homes—only own around 1% of total single-family housing stock. That said, in a handful of regional housing markets, institutional and large single-family landlords have a much larger presence.”

In other words, the experience can vary significantly depending on where you’re trying to buy.

2. ‘Investor’ is a very broad label.Another reason the numbers sound alarming is because many headlines lump all investors together—big Wall Street firms and small local landlords alike. But those are very different buyers.

In reality, the vast majority of investors are small, local owners—often individuals who own one or two rental properties. When those buyers get grouped together with large institutions, it inflates the narrative and makes it seem like massive corporations are dominating the market, even when they’re not.

What’s Actually Driving Affordability Challenges

Yes, large investors exist. Yes, they do buy homes. But nationally, they are responsible for a very small share of total purchases—far smaller than most people assume.

The bigger challenges facing buyers today have much more to do with low housing supply, strong demand, and years of underbuilding, not institutional investors crowding out everyday buyers.

That’s why separating noise from reality matters—especially if you’re trying to decide whether now is the right time to move.

If you’re curious about how investor activity shows up in your local market—and whether it truly impacts your buying or selling options—a conversation with a knowledgeable local real estate agent can add much-needed context.

Sometimes, a little clarity makes all the difference.