Do you recall the headlines that talked about all the houses that large institutional investors were purchasing? You might have questioned how you would ever be able to compete with that if you were considering purchasing a home of your own. The problem is this. Particularly at the moment, that is not the difficulty that many people believe it to be.
Let’s examine what’s actually happening and why the recent change in strategy investors are adopting may work to your advantage.
Large Investors Are Pulling Back
In actuality, institutional investors have never held a larger portion of the housing market than the general public believes. They are now retreating even further.
Large real estate investors aren’t purchasing as many houses these days. Actually, they are selling more than they are purchasing.
In the second quarter of 2025, six of the eight biggest institutional single-family rental investment companies in America sold more homes than they purchased, per data from Parcl Labs (see graph below):
And this figure truly puts it into perspective. Dominion Financial estimates that roughly 1.75 homes are sold for every one that large investors purchase.
What’s Causing Big Investors To Change Course?
It’s actually quite easy to see why institutional investors aren’t purchasing as many homes as they did in the past. The reason for this is that while home values aren’t increasing as quickly as they were a few years ago, rental maintenance expenses are.
The majority of institutional investors purchase homes with the intention of renting them out, so these increased expenses reduce their profit margins. Keep in mind that purchasing a home is a business to investors.
However, you’re not purchasing a house for the upcoming year or the year after. It’s a long-term strategy because you’re purchasing a place to start a life.
Home values have historically increased over time. Therefore, you’re in a completely different position than investors, who may be sidelined by the current situation. You have the opportunity to purchase now, when there is less competition, and take advantage of the possibility of long-term price growth, which is something that most investors are choosing not to wait for in favor of shorter-term returns.
What Does All This Mean for You?
Approximately 55% of real estate investors, according to a recent survey, have no immediate plans to expand their rental portfolios. As large investors retreat, deep-pocketed buyers will be less of a threat. Additionally, it gives you more options because they are expanding the inventory that is currently for sale.
Bottom Line
It might be time to give it another look if you have been putting off making a purchase. To get professional advice on what’s available and what might be a good fit for you, get in touch with a local real estate agent.