Overall investor purchases are increasing slightly, but investors are backing away from condos as it becomes harder to make money by renting them out—especially in Florida
SEATTLE, May 28, 2025–(BUSINESS WIRE)–(NASDAQ: RDFN) —U.S. real estate investors purchased 46,726 homes in the first quarter, up 2% year over year. That’s according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage. Investor purchases have been relatively stable for the last year, increasing or decreasing by 4% or less each quarter.
This puts an end to the wild pandemic-era swings in investor purchases, with purchases increasing by up to 145% year over year in the middle of 2021 and falling by as much as 47% at the start of 2023.
In terms of raw numbers, investor purchases are back to roughly pre-pandemic levels.
Investor purchases soared at the start of the pandemic, with real estate flippers and landlords rushing to take advantage of ultra-low mortgage rates and the moving frenzy, then plummeted in 2022 and 2023 as rates increased and people stopped moving. Now, investors are more level-headed, purchasing homes when they believe it will provide a good financial return but holding off when there’s more risk.
“Investor home purchases have leveled off because rapid sale-price and rent growth is no longer the norm,” said Redfin Senior Economist Sheharyar Bokhari. “While some investors are still making money by flipping homes or renting them out, particularly in parts of the U.S. where rents are still rising, many of the investors who jumped into the market in 2021 or 2022 have backed off. That’s one piece of good news for regular homebuyers: While it’s still hard for the average American to afford a home, there are now more homes to choose from and individuals aren’t facing stiff competition from investors. That allows buyers the chance to negotiate prices down, and/or ask the seller for concessions.”
Investors netted a median of $182,980 in capital gains for each home they sold in March, up 2.8% from a year earlier. Just 6% of homes sold by investors were sold at a loss, up only marginally from 5% a year earlier.
Investor listings are making up a slightly smaller share of overall listings than last year. Less than one in 10 (8.4%) total U.S. home listings was from an investor in March, down from 8.9% a year earlier and the lowest share in nearly two years. Investors are selling fewer homes now mainly because their buying activity plummeted in 2023.
Investor Purchases of Condos Decline 3% Year Over Year to Lowest Level Since Onset of Pandemic
While overall purchases are holding steady, investors are backing off of condos. Investors purchased 8,509 condos in the first quarter, down 3% year over year to the lowest level in 10 years (except Q2 2020, when the start of the pandemic nearly ground the housing market to a halt).
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