Institutional Investors Snap Up Homes Across US—Taking Largest Share in These 5 Metros
Institutional investors continue to hold a significant portion of America’s real estate stock, buying more than 6% of homes across the US by 2025 alone—but new data reveals there are five metros where they could be pulling the most cash from the market.
Before the COVID pandemic, the share of houses sold to large investors hovered around 5%, before doubling to 9.3% in 2021. Although it has since declined, it has failed to return to pre-pandemic trends, remaining steady at 6.6% in 2024 and 2025, according to the US ATTOM205nd Home Report.
Investments in institutional buildings across the US have recently been a target Donald TrumpThe push for more affordability, with the president threatening to “block” Wall Street from “buying single-family homes,” is a move he insists will help open up more housing inventory to the average American.
On Jan. 20, Trump took the first step toward the ban when he signed an executive order Kevin Hassettassistant to the president for economic policy, and Secretary of the Treasury Scott Besant 30 days to “improve definitions” for both “large institutional investors” and “single family home.”
He noted that these terms need to be clarified to better assess how the ban would affect the single-family housing market before further action is taken.
However, a new ATTOM report suggests that institutional investment bans could have a greater impact on some US cities than others, highlighting five states where large investors buy the most significant share of single-family homes.
The report also highlights the ongoing problem of housing affordability in the housing market, noting that prices continue to rise through 2025—despite American families facing more financial constraints.
“House prices will continue to rise in 2025 as the challenges of not being able to pay the expenses increased in houses across the country,” it said. Rob BarberCEO of ATTOM.
Trump’s rule does not begin with institutional investors being flagged as a potential barrier to affordability.
By 2023, the US Department of Housing and Urban Development said institutional investors and other large companies are responsible for buying an “increasing share” of single-family homes.
“[They are] taking properties off the market for individual buyers and putting upward pressure on housing prices and rents,” HUD’s report said at the time.
ATTOM data identified the following states as seeing the highest prices especially for institutional investors: Tennessee and Texas (9.2% of all sales); Missouri (9.1%); Indiana (9%); and Georgia, Alabama, and Oklahoma (8.8%).
But the report also identified five metros with the largest share of sales to institutional investors by 2025.
The top metros on the list are located in the South—and Realtor.com®’s largest economy Joel Berner we note that these areas are important for capital investment due to their low housing prices.
“These Southern metros all offer low-cost housing with the ability to command strong rents. This means a better return on investment for these institutional investors,” explained Berner.
1. Memphis, TN
- Median list price: $314,950
- Average days on market: 78
The ATTOM report found that institutional investors make up 14.8% of all sales by 2025 in Memphis. According to Realtor.com data, there are more than 4,500 active listings as of December 2025, with an average listing price per square foot of $154.
2. Huntsville, AL
- Median list price: $376,250
- Average days on market: 75
Investors’ share of the Huntsville facility in 2025 was 11.9% of sales. The metro has an active listing of 2,727 homes for sale, with an average list price per square foot of $171.
3. Fayetteville, NC
- Median list price: $295,000
- Average days on market: 67
In Fayetteville, institutional investors made up 11.4% of sales last year. The metro has more than 1,400 active listings, with an average listing price per square foot at $154.
4. Birmingham, AL
- Median list price: $289,663
- Average days on market: 73
The share of institutional investors in Birmingham throughout 2025 was 11.2% of housing sales. There is an active listing count of over 4,200, with an average listing price per square foot at $156.
5. Dallas
- Median list price: $412,500
- Average days on market: 71
In Dallas, institutional investors account for 11.1% of home sales by 2025. The metro has an active listing price of more than 25,000 homes, with an average listing price per square foot in the $200s.
“Each city has a strong labor market which suggests that demand for housing will remain high, keeping the value of investing in housing there,” said Berner. “These markets are attractive to employers for this same reason: more job opportunities. Inventory is growing in these major cities as each has a decent level of new construction activity.”
Making money
The ATTOM report also found that all-cash deals remain popular in 2025, with the share of homes bought for all-cash rising to 39.1% – the highest since 2013.
But profit margins on the sale of a median-priced home were lower in 2025 compared to 2024 in 87.7% (114) of the 130 metropolitan areas with sufficient data for analysis by ATTOM.
Florida and California are the worst-hit metros. Among metros with more than 1 million people, the biggest declines were found in Tampa, FL (down 15 percentage points to 58%); Jacksonville, FL (down 13 percentage points to 45%); Fresno, CA (down 12 percentage points to 62%); San Jose, CA (down 12 percentage points to 94%); and Miami (down 11 percentage points to 72%).
Not all metros found themselves in the red. ATTOM data identified the metro areas that saw the largest year-over-year growth in average real estate profit margins. Its findings found that all those metros were in the Midwest: Canton, OH (scores rose from 5 to 54%); Akron, OH (up 3 points to 59%; Chicago (up 2 points to 47%); Cleveland (up 2 points to 61%); and South Bend, IN (up 2 points to 59%).
