BiggerPockets Daily Small Investors Make Up a Third of the Market in Some States as Opportunities Pile Up
Jul 31, 2025
Small investors are revolutionizing the housing market, now comprising nearly a third of it while larger players pull back. Discover how nimble strategies and regional hotspots empower mom-and-pop landlords in a high-rate environment. Insights reveal why traditional buyers are sidelined and how everyday investors are capitalizing on current trends. This dynamic shift offers unique opportunities, especially in states like California, Texas, and Florida, as the real estate landscape continues to evolve.
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Rise of Small Investors
- Small mom-and-pop investors now control nearly a third of the U.S. real estate market.
- Institutional investors have pulled back due to high borrowing costs and regulatory scrutiny.
Build-to-Rent Strategy Shift
- Big institutional investors are shifting focus from buying homes to build-to-rent communities.
- Builders profit more quickly and reliably from renting newly built homes in the current market.
Stand Capital's Nimble Model
- Stand Capital buys, renovates, rents, and sells single-family homes with a targeted 5% annual appreciation.
- They avoid competition by focusing on discounted deals in secondary markets.