Small investors now dominate US investor buying

Small investors accounted for 66.2 percent of investor home purchases in the first half of 2026, their highest share in at least 15 years, according to Realtor.com's latest Investor Report, released on October 21. These buyers purchased roughly 148,000 homes in that period, while mega investors purchased about 12,700 homes. They are therefore the largest group in the investor market by a wide margin, even as total investor buying fell.

Investors purchased about 224,000 homes in total in the first half of 2026, down 7 percent from the first half of 2025. That was the lowest first half total since 2020, and non investor purchases fell 3.7 percent. Investors' share of all home purchases slipped 0.3 percentage points to 10.7 percent. The market cooled, but the change in who buys is larger than the change in how much investors buy overall.

Small investors and cash purchases

These smaller buyers financed far more of their deals than the largest buyers, and the cash figures show the gap clearly. They paid cash for 56.1 percent of purchases, compared with 80.4 percent for mega investors. That means small investors relied on mortgages and other loans for a much larger share of their purchases. For lenders, these buyers are therefore a more important customer group than mega investors, because they borrow more often.

Across all investor home purchases, 55.5 percent of investor home purchases were all cash in the first half of 2026, compared with 30 percent of purchases across the whole market. The investor cash share has fallen from a recent peak of about 68 percent in 2021 and 2022. That fall in cash purchases points to more mortgage use among investors as a whole, and it fits the rise of small investors, who are less likely to pay cash in full. Cash still sets investor purchases apart from the wider market, but the gap has narrowed since the pandemic years.

Realtor.com senior economist Hannah Jones said investor buying eased, but the bigger shift is who is buying. She said small investors made up 66.2 percent of investor purchases, while large and mega investors sold more homes than they bought. That last point matters, because it means large and mega investors were net sellers in the period, even as small investors kept buying. The investor market is therefore not moving in one direction, and the headline total hides a split between small and large buyers.

Where small investors are buying

Investor activity stayed concentrated in the Midwest and Sun Belt in the first half of 2026. Memphis, St. Louis and Kansas City each saw investors account for about one in five home purchases in that period. Jones said investor activity reflects local market conditions, with affordability supporting activity in the Midwest, while available inventory and softer prices create opportunities in parts of the Sun Belt. Those local factors help explain why these buyers, who often buy near where they live or in markets they know well, remain active even when national totals fall.

The median investor purchase price was $295,000 in the first half of 2026, up 3.5 percent year over year. That price was still 22.4 percent below the $380,000 market wide median. The gap suggests investors are buying lower priced homes on average, which may include homes that need work or homes in lower priced areas. For first time buyers, that overlap can mean competition for the same homes, especially in markets where affordable stock is limited.

What the shift means for buyers in this group

For these buyers, the data point to a market where borrowing matters more than it did for mega investors. A buyer in this group who pays cash for 56.1 percent of purchases still borrows for the rest, and loan rates, down payment rules and rental income all affect whether a deal works. For lenders and agents, these buyers are now the main investor customer group, and their needs differ from those of a fund buying hundreds of homes at once.

The report does not suggest investor buying will rebound at once. Total investor purchases are at their lowest first half level since 2020, and large and mega investors are still selling more than they buy. Small investors kept their share high by buying more steadily than the largest buyers, not by buying more in total. The next report will show whether small investors hold that 66.2 percent share, or whether the largest buyers return when rates or prices change.