In 2024, a quiet but notable shift took place in the U.S. housing market: while individual homeowners largely held back due to soaring mortgage rates, real estate investors went the opposite direction—selling properties at record levels in an effort to cut their losses.
According to the latest Realtor.com® Investor Report, nearly 11% of all U.S. home sales in 2024 came from investors—the highest share since data tracking began in 2001. The median sales price for these properties hovered around $330,000.
So why the rush to sell?
It all comes down to a shift in market dynamics. While investors once sold properties to cash in on skyrocketing home values during the post-pandemic boom, today’s sales are driven by softening markets and slipping rental prices.
“Rent growth has slowed or even reversed in many areas, and cash flow is tightening,” says Hannah Jones, a senior economic research analyst at Realtor.com. “Investors are reacting quickly to avoid deeper losses.”
Take Jared, a small-scale investor in Salt Lake City, Utah. He purchased two townhouses in 2021, planning to hold and rent them long-term. But over the past year, rental income dropped by nearly 12%, and his vacancy periods grew longer. “I didn’t lose money technically, but the return just wasn’t there anymore,” he said. He recently sold one property to reduce his debt burden.
In total, investors sold around 509,000 homes last year—not as high as the peaks of 2021 or 2022, but still well above pre-pandemic levels.
The sell-off was most intense in the Midwest and South. Missouri and Oklahoma led the pack, with 16.7% of home sales in each state coming from investors. Georgia followed closely at 15.9%, with Kansas and Utah both around 14.3%.
Interestingly, these states were also some of the most popular places for investors to buy in 2024, indicating a high level of turnover. In Missouri, investor purchases made up over 21% of all home sales. Oklahoma came in at 18.7%, followed by Kansas (18.4%), Utah (18%), and Georgia (17.3%).
So what makes these states investor magnets? Affordable prices and relatively high rents.
“The cost of buying a home is still manageable in these areas, and rents are strong compared to national averages,” says Jones. “That creates a sweet spot for investors looking for solid returns.”
For example, a five-bedroom home in Kansas City is currently listed for $325,000—a price point that appeals to both renters and budget-conscious investors.
Despite the uptick in investor sales, in most states, investors still bought more than they sold in 2024. But that gap is narrowing. Among large institutional investors, the net number of homes bought over those sold dropped sharply—from 134,000 in 2021 to just 8,700 in 2024. Mid-sized investors (those who own 10–50 homes) barely broke even, purchasing only about 250 more homes than they sold all year.
Jones sees this as a sign that even seasoned investors are growing cautious. “Many big players are no longer aggressively expanding—they’re reassessing, rebalancing, and offloading underperforming assets.”
Marianne, who runs a mid-sized investment firm based in Los Angeles, echoed this sentiment: “We used to add 15, 20 properties a year. Now we’re focused on tightening the portfolio. If a unit’s not producing solid returns, it’s time to let it go.”
Among the top 50 U.S. metro areas, the cities with the highest investor activity were all in the Midwest and South—namely Memphis, Oklahoma City, St. Louis, Kansas City, and Birmingham. These markets offer low entry costs, stable demand, and relatively strong rental yields.
But does increased investor activity help or hurt the housing market?
It depends on who you ask. On one hand, investors often add to the supply of rental housing—a key need given the U.S.’s estimated 4-million-unit housing shortage. On the other hand, they compete with individual buyers for affordable properties, further shrinking the pool of starter homes.
In 2024, the average investor paid $282,000 per home—about $70,000 below the national median. These lower-priced properties are exactly what many first-time homebuyers are chasing.
“It’s not uncommon for a young couple to find a perfect starter home, only to lose out to an investor with cash in hand,” Jones says. “It creates an uphill battle for those with limited budgets.”
The rush to sell wasn’t limited to big firms either. Mom-and-pop investors were also active sellers. Small-scale landlords—those owning fewer than 10 homes—sold about 270,000 properties last year, the third-highest number in over two decades.
While investor purchases still outpaced sales overall, the smallest gap in 24 years suggests a market in transition. And as more investors reassess their strategies, that shift could continue in 2025 and beyond.
Ultimately, the data tells a broader story. When rental yields fall and housing costs rise, even the most aggressive investors pause. And for everyday buyers navigating a tough market, that pause might finally open a door—if only a crack.