Remember the chatter in the headlines about all the homes big institutional investors were buying? If you were thinking about buying a home yourself, you may have wondered how you’d ever be able to compete with that. Here’s the thing. That’s not the challenge so many people think it is – especially right now.
Let’s break down what’s really going on and why the recent shift in the approach investors are taking could tip the scales in your favor.
The truth is institutional investors never represented as big a share of the housing market as people think. And now, they’re backing off even more.
Today, big real estate investors aren’t buying as many homes. In fact, they’re actually selling more than they’re buying.
According to data from Parcl Labs, 6 out of 8 of the largest institutional single-family rental investment companies in America sold more homes than they bought in the second quarter of 2025 (see graph below):
And here’s the stat that really puts it in perspective. According to Dominion Financial, for every home being bought by big investors, about 1.75 are being sold.
The reason institutional investors aren’t buying as many homes now compared to recent years is actually pretty simple. It’s because home values aren’t rising as fast as they were a few years ago, but the costs associated with rental maintenance are.
Since most institutional investors buy homes to rent them out, those higher costs eat into their margins. Remember, to investors, homebuying is a business.
But you’re not buying a home just for this year or next. You’re buying a place to build a life, and that’s a long-term play.
Historically, home values tend to rise over time. So, while investors may be sidelined by what’s happening right now, you’re in a different position entirely. You have the chance to buy while competition is lower and benefit from potential long-term price appreciation – something most investors are choosing not to wait for as they focus on shorter-term returns.
According to a recent survey, about 55% of real estate investors have no plans to grow their rental portfolios now or in the near future. With big investors stepping back, that means less competition from deep-pocketed buyers. And since they’re adding to today’s for-sale inventory, it also creates more options for you.
If you’ve been holding off on buying, now might be the time to take another look. Let’s connect so you can get expert guidance on what’s available and what might be a good fit for you.
What kind of home would you be excited to make yours this year?
If you’ve been putting off buying a home because you thought getting approved would be too hard, know this: qualifying for a mortgage is starting to get a bit more achievable, but lending standards are still strong. Lenders are making it slightly easier for well-qualified buyers to access financing, which is opening more doors for...
Here’s something you need to know. The housing market is getting back to a healthier, more normal place. And even though it may not sound like it, this shift is actually a good thing. It’s what you should expect. It’s just that our expectations have been skewed by the intense seller’s market over the past...