Why Big Investors Aren’t a Challenge for Today’s Homebuyer

Not long ago, headlines were filled with stories about big institutional investors buying up homes. If you were hoping to purchase a home yourself, you might have wondered: How could I possibly compete with them?

Here’s the truth: That challenge isn’t as big as many people think, especially in today’s market.

Big Investors Are Pulling Back

First, institutional investors have never represented as large a share of the housing market as most people assume. And now, their presence is shrinking even more.

Recent data shows many large real estate investment companies are actually selling more homes than they’re buying. According to Parcl Labs, 6 out of the 8 largest institutional single-family rental companies in the U.S. sold more homes than they purchased in Q2 2025.

And to put it in perspective, Dominion Financial reports that for every 1 home big investors are buying, they’re selling about 1.75.

Why Investors Are Stepping Back

The slowdown comes down to simple math. Home values aren’t climbing as quickly as they did a few years ago, while maintenance and operating costs for rental properties are rising.

Since institutional investors buy homes primarily to rent them out, higher costs eat into their profits. For them, it’s a short-term business decision.

But here’s the key difference: you’re not buying for short-term gain. You’re purchasing a home to live in, build equity, and enjoy for years to come.

Historically, home values have increased over the long run which means while investors step aside, you have an opportunity to buy in a market with less competition and more available inventory.

What This Means for You

A recent survey found that 55% of real estate investors have no plans to expand their rental portfolios in the near future. That’s good news for buyers like you:

• Less competition from deep-pocketed buyers

• More options as investors list properties for sale

• Better opportunity to find a home that fits your needs and budget

If you’ve been waiting for the right moment to buy, this could be it. With fewer big investors competing for the same homes, you may have more negotiating power and a better chance of landing the home you really want.

Big investors are pulling back, which creates new opportunities for everyday homebuyers. With lower competition and more inventory, now might be the right time to explore your options.

Let’s connect so you can see what’s available in your market and take advantage of this shift.