US Investor Home Purchases Fall to Lowest Level Since 2020

Redfin reported that US investor home purchases fell 6% year-over-year in Q1, dropping to their lowest level since 2020, when the onset of the pandemic sharply disrupted housing activity. Prior to 2020, investor purchases had not been this low since 2016.

According to Redfin, elevated housing costs continued to weigh on investor activity. Although mortgage rates eased into the low-6% range during Q1 from levels near 7% throughout much of 2025, borrowing costs remain well above pandemic-era lows. Rising home prices in most markets have also increased acquisition costs and reduced potential returns from rental properties and home-flipping investments.

Despite the decline in purchases, investors remained active in the housing market. Real estate investors accounted for 19% of homes purchased in Q1, or nearly one in five transactions, down slightly from 20% a year earlier. Overall homebuying activity also weakened, with pending home sales falling about 3% year-over-year in March.

Investor-owned listings represented 7.8% of all US homes for sale during the quarter, the smallest share in five years. Redfin said the decline reflects reduced investor buying activity in recent years, resulting in fewer properties available for resale.

Single-family homes remained the dominant property type for investors, accounting for 70% of purchases in Q1. Condominiums represented 18% of investor purchases, while townhouses accounted for 7%.