BiggerPockets Daily Investor Purchases Fall to Lowest Spring Levels in Five Years
Sep 10, 2025
Investor home purchases have plummeted to their lowest spring level since 2020, driven by rising borrowing costs and economic uncertainty. Condo sales are particularly hard-hit, with a staggering 13% decline, the worst since 2013. Despite these challenges, investors still account for nearly 20% of homebuyers. Interestingly, while Florida metros see a retreat, activity is surging on the West Coast, reflecting the uneven landscape of the housing market.
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Investors Pull Back But Market Share Holds
- Investor purchases fell to the lowest spring level since 2020 with about 52,000 homes bought in Q2 2025.
- Investors still accounted for 17% of US home purchases, so the pullback mirrors the broader market slowdown.
Financing And Rents Drive Investor Calculations
- Higher borrowing costs and economic uncertainty reduced investor deal activity despite some paying cash.
- Investors still rely on financing for renovations and leverage, so rates and rents matter to their returns.
Rental Softening Cuts Potential Upside
- Asking rents have slipped from their peaks and short-term rental rules cooled STR markets.
- Typical investor gains rose only 1.7% year-over-year to about $195,000 per sale, signaling weaker upside.