Who’s Buying America’s Homes? New Data Shows It’s Not Just Institutional Giants

Turns out, it's not only Wall Street with deep pockets when it comes to real estate investing.

More than 90% of investor-owned homes in the U.S. belong to small landlords with fewer than 11 properties, according to the latest Investor Pulse report from CJ Patrick Co. and BatchData.

Even in states with the highest rates of investor ownership, it’s not institutional buyers driving the trend.

In Maine (31.1%), Montana (31%), Alaska (27.2%), and Hawaii (26%), small landlords dominate. These states hold the largest share of investor-owned homes in the country, yet the overwhelming majority of that housing stock is in the hands of individuals and small partnerships, not mega investors.

Nationwide, landlords with 1 to 50 properties control 95% of all investor inventory, confirming that rental housing remains largely an entrepreneurial activity rather than a corporate one, according to the report.

"Being a real estate investor has been pretty rewarding for me so far," Adam Hamilton, CEO of REI Hub, tells Realtor.com®. "I would still say that I’m relatively new with it, as I’ve only been an investor for a couple of years now. I have just a couple of properties in the Richmond, VA, area, where I live."

In the second quarter of 2025, investors made up 33% of all home purchases—the highest in five years. But this wasn’t due to a sudden surge in investor buying—it was because traditional buyers have pulled back in the face of affordability constraints.

With mortgage rates at 6.3% for the week ending Oct. 9, homeownership has become out of reach for many middle-income households, leaving cash-ready investors to fill the gap and keep housing transactions moving.

Even in high-share investor states like Hawaii and Maine, where short-term rental regulations have grown more stringent, it’s not institutional firms scooping up beachfront properties or ski homes.

Instead, it’s largely local or regional landlords with just a few properties. Many target older homes that need work and aim to generate stable, long-term rental income rather than flipping for a quick profit.

"I do utilize property management services, so I’m not super hands-on, but I try to make an effort to meet my tenants and make myself accessible to them," Hamilton adds. "It’s not my primary source of income currently, but it’s helping me get closer to some of my financial goals, and I know that as I hopefully buy more properties in the years to come, it will be a much bigger income source for me."

Hamilton represents exactly the kind of small investor dominating this market segment: locally rooted, financially strategic, and community-minded.

According to the report, small investors like him are also more likely to renovate older housing stock and provide long-term rentals, especially in areas where affordability or geography limits new construction.

Maine and Hawaii still favor small players

While these four states all share high levels of investor ownership, their local housing policies diverge—particularly when it comes to short-term rentals (STR).

In Honolulu, Hawaii’s largest housing market, STRs (defined as stays under 30 days) are now allowed only in resort zones and a handful of designated apartment areas. New permits for “unhosted” whole-home vacation rentals are no longer being issued and enforcement has ramped up, according to the state website.

Ordinances passed in 2022 and 2024 require registration, disclosures upon sale, and strict use compliance. Even so, investor activity remains high—underscoring that most buyers aren’t betting on short-term income, but rather on long-term value.

In Maine, STR regulation is left to municipalities, with towns like Newry—a community of just over 400 residents near Sunday River ski resort—debating how to handle increasing investor interest.

The town considered a Vacation Rental Registration Ordinance to address safety and zoning alignment, though it stopped short of any outright ban. This local-level control is common across the state, where many towns require annual permits, inspections, and compliance with environmental standards.

Yet, even with this scrutiny, small investors remain dominant, thanks to their ability to identify opportunities in local market conditions.

Hannah Jones, senior economic research analyst at Realtor.com, explains how this plays out across regions.

“Small investors have long been the dominant form of investor in the housing market. Large investor activity picked up during the [COVID-19] pandemic when rents and home prices were climbing rapidly, but even then, large investors were not the majority nationally.

“Traditional homebuyers are looking for the right house in the right place at the right price," she says. "Investors have more flexibility. They are not constrained by their household's needs, but are rather looking for a good investment opportunity, which could come in various forms. Investors often have more access to capital as well, which allows them to navigate today's high-priced market more effectively.”

That’s especially relevant in states such as Maine and Vermont, she notes. “Both have robust vacation markets, opening up vacation rental opportunities for investors.”

While not all investor-owned homes are used for STRs—especially under tighter regulations—investors can still find value in long-term rental demand, renovation potential, and appreciation in desirable lifestyle destinations.

Even as investor activity rises in some of these states, the report makes clear that many investor-held homes don’t stay in investor hands forever.

In the second quarter, 60% of investor sales went to traditional homebuyers, helping to replenish the owner-occupied stock rather than shrinking it. And with large institutional players retreating from the single-family rental market—selling off more homes than they purchased—small investors are increasingly the ones keeping local markets stable.