Search
 

Investor Home Purchases Plummet to Lowest Level in Nearly a Decade

Florida is experiencing the sharpest investor retreat.

By Kristen Smithberg | March 10, 2025 at 04:29 AM

Investment in the U.S. homes market fell to its lowest level in nearly 10 years as real estate investors picked up 47,004 homes during the fourth quarter, a 3.9% year-over-year decrease. This is the biggest decline in a year, according to a Redfin analysis of county-level home purchase records across 39 markets.

Investors are facing the same challenges as other home buyers, including a slowing housing market driven in part by high prices, tepid demand with plateauing rents, economic uncertainty accompanying the transition to the Trump administration, and continued high interest rates. Investors are typically less sensitive to mortgage rates than regular home buyers because about 65% pay in cash, but loans they take to cover home-flipping costs and other expenses are impacted. Fears about not achieving an acceptable rate of return or having to sell at a loss could be weighing on investors, said Redfin.

NOT FOR REPRINT

© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2025 ALM Global, LLC. All Rights Reserved.