One of the reasons home prices have skyrocketed this decade is because there is so much competition for the limited supply of available homes. This is especially true in markets where everyday house hunters must compete with investors looking to make a profit from their purchases.
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The number of investors snapping up homes will remain at a “historically high level” through 2025 and is expected to remain that way for the foreseeable future, according to a new report from Cotality, a California-based provider of real estate and other financial data.
Investors accounted for 29% of all single-family home buyers in the U.S. in the second quarter, the report said. That was up from 25% a year earlier, and represents a big jump from five years ago, when investors accounted for less than 15% of all purchases.
Which cities score highest in terms of investment activity? About half are spread across the Sunbelt states as these regions continue to attract more residents. But you will also find high-ranking cities in all parts of the country.
For its report, Cotality analyzed housing patterns across the country to determine which homes were purchased by investors and which by non-investors. Investors were divided into the following categories:
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Small: Less than 10 properties
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Medium: From 10 to 99 properties
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Big: From 100 to 999 properties
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Mega: From more than 1,000 properties
Not surprisingly, major metropolitan areas dominate the list of places where investors are most active. According to Cotality, these were the top 20 ranked cities for investor purchases from January to June 2025:
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Dallas: 21,842 (purchased homes)
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Houston: 18,324
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Atlanta: 15,536
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Phoenix: 12,640
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Los Angeles: 11,130
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Chicago: 10,423
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New York: 9,395
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Tampa, Fla: 7,400
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San Antonio: 7,337
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Philadelphia: 7,239
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Washington, DC: 6,750
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Riverside, California: 6,749
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Kansas City, MO.: 6,334
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St. Louis, Missouri: 6,076
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Seattle: 5,930
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Vegas: 5,803
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Denver: 5,772
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Detroit: 5,240
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Charlotte, North Carolina: 5,102
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Indianapolis: 4,983
Mid-market investors are the driving force behind the recent increase in investor activity, as their market share rose from 10% in June 2024 to 10% in June 2025. Small investors represent the most common investor type with a 14% share.
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Investors are “stepping in” to meet strong demand for rental properties in an environment where first-time homebuyers are being sidelined by high house prices and high mortgage rates, Cotality said.
