Key facts
- Investors accounted for 27% of U.S. single-family home purchases between March and June 2026.
- This share is down from 28% in the first quarter of 2026.
- Investor purchases decreased by approximately 40,000 year-over-year in the second quarter.
- Mega investors (1,000+ properties) drove about 10,000 of this decline.
- The 21st Century Road to Housing Act, which impacts institutional owners, is now law.
- Cotality noted a sharp drop in mega investor activity when the legislation was introduced in January.
Investor participation in the U.S. single-family housing market has seen a notable decline, with their share of purchases falling to 27% in the second quarter of 2026, down from 28% in the first quarter, according to Cotality. This seasonal dip is compounded by a significant drop in overall investor volume, particularly among mega investors who own at least 1,000 properties.
Mega investors reduced their purchases by approximately 40,000 compared to the previous year, accounting for about 10,000 of the total decline. This sharp decrease, especially given their small market presence, suggests that proposed restrictions, such as the 21st Century Road to Housing Act, have had a chilling effect. Cotality's data indicates that mega investor activity began to fall even before the law's official enactment, with a pronounced drop observed in January when the legislation was introduced.
Large investors (100-999 properties) saw a 21% year-over-year reduction in acquisitions, while medium investors (10-99 properties) reduced purchases by 17%. Small investors (3-9 properties) experienced a 3% decline. Thom Malone, principal economist at Cotality, noted that the true impact of the new law, which sets a 350-home threshold for institutional owners, will become clearer in the third quarter. He suggested that some institutional investors might redirect capital towards newly constructed properties, as built-to-rent projects are exempt from the legislation.
Despite the focus on institutional investors, Malone stated that their activity does not appear to be a major concern for the broader housing or rental markets, as they represent a small fraction of overall transactions. Cotality has not detected a significant effect on home prices or rents in areas where investor activity has decreased. However, he acknowledged that large investors' ability to pay cash and waive contingencies can make competition difficult for individual homebuyers.