Investors are taking a larger share of home purchases, but new data shows the growth looks different than the political rhetoric suggests.

The investor share of single-family home purchases rose to the highest point in five years, according to the latest numbers CJ Patrick prepared for BatchData.

Investor buying represented a 34% share of purchases during the third quarter of 2025, up from 25.5% a year earlier. But investors also purchased 23,000 fewer houses than they did 12 months earlier.

"This suggests the higher percentage is due to traditional homeowners retreating from the market rather than overly aggressive investor activity," Ivo Draginov, president of BatchData, said in a press release.

Institutional players President Trump is considering banning from the market did not have a large ownership stake during the period, according to the report.

Buyers that have more than 1,000 properties accounted for a little over 2% of investor-owned homes while those who own just 1-5 pieces of residential real estate dominated the market, according to the third quarter 2025 numbers.

Institutional investors engaged in 5,798 sales compared with 4,663 purchases during the period and have now sold more properties than they bought for seven quarters in a row.

A focus on workforce housing

Whether policymakers move to restrict investor purchases of homes may depend on how they weigh the role of ownership versus rentals in affordable housing. Experts remain divided on which model works best across different income levels.

Recent investor activity has been focused on the "workforce housing" tier, according to a Cotality report published Thursday. Properties in the $150,000-$300,000 range have recently represented nearly half or 48.2% of investor activity, the report shows. 

"While luxury property may grab headlines, institutional success relies on scale and reliable yield. The analysis of our national investor transitions broken down by price band clearly validates this," Cotality noted in its report.

Homes in the $300,000-$500,000 range represent 31.5% of investor activity, followed by $500,000-$750,000 housing at 11.8%. Properties below $150,000 make up just 4.5% of activity, with the remaining 4% allocated to the $750,000-plus price tier.

Variations by state

Numbers for the investor share within the single-family home market vary broadly depending on the context depending on whether it is based on properties owned or sold, shares or outright numbers and a particular data source's definitions. Geographic variations also exist.

Texas, California, Florida, North Carolina and Georgia account for around one-third of investor-owned homes, according to the BatchData report that CJ Patrick prepares.

Lone Star State investors hold the largest number at more than 1.4 million. California investors hold 1.2 million, followed by Florida at over 1 million; North Carolina, nearly 788,000; and over 600,000 in Georgia.

Based on share, the percentage of homes investors own is highest in five different states that the Investor Pulse report calls tourist destinations: Wyoming, 30.9%; Maine, 29.76%; Alaska, 26.65% and Hawaii, 25.96%.

Metros with high investor shares

Investors own at least 18% of single-family properties in almost half or 48 of the 100 largest metropolitan areas, according to the report. 

The share of investor-held homes runs highest in areas that include the Southeast, with North Carolina's Asheville leading at 30%, respectively. Las Vegas and Memphis follow with the investor share in both at 26%. Fayetteville is another metro within North Carolina that has a high investor share at 25.6%, followed by Brownsville, Texas' 25%.

Markets where the share of institutional investors is high include Jacksonville, Florida, 2.67%: Atlanta, 2.63%; Phoenix, 1.96%; Charlotte, North Carolina, 1.95%; and Orlando, 1.62%.

The Trump administration has shown interest in pursuing some of its housing initiatives through bipartisan congressional efforts. Some Democrats such as Raphael Warnock, D-Ga., have shown interest in passing legislation to this end.

Whether or not action is taken toward restricting institutional investor sales remains to be seen as Trump has described it as just one of several housing initiatives he has been considering and may explore at the upcoming World Economic Summit in Davos, Switzerland.

Housing officials have reversed some previous efforts the Democrats made to give consumers priority in foreclosure-related property sales while President Biden was in the White House, so the current administration may want to take a different tack toward the same goal if it pursues it.