BiggerPockets Daily Investor Purchases Fall to Lowest Spring Levels in Five Years
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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.