Real estate investors are scooping up properties while many buyers are still sitting on the sideline.

As home sale inventories increase, many buyers are waiting for interest rates or home prices to decrease before purchasing. During this period, real estate investors continue to acquire properties.

Affordability constraints remain a factor affecting homebuying activity across the US, as home prices stay elevated and mortgage rates have yet to decline significantly in 2024. As a result, numerous prospective buyers are delaying their purchases amid ongoing market fluctuations, while real estate investors maintain active acquisition strategies and expand their presence.

From 2020 to 2023, investors represented 18.5% of all home purchases, according to data from BatchData. By 2025, this share rose to over 26%, influenced by increased activity early in the year. BatchData reports that investors remain active in the market due to advantages in cash and financing compared to other buyers who are more affected by higher housing costs.

With slower home sales and longer listing periods, inventory is accumulating, providing opportunities for investors less impacted by current mortgage rates. Many investors are using cash or home equity for new purchases, whereas first-time and mid-income buyers continue to wait for improved conditions.

Currently, investor-owned properties account for approximately 20% of the nation’s 86 million single-family houses.