What Today’s Buyers Need to Know About Competing With Investors

Remember all those headlines warning that big institutional investors were snatching up homes left and right? If you were hoping to buy, it probably felt like the odds were stacked against you. But here’s the good news: that narrative doesn’t hold up in today’s market—especially now.

Let’s take a closer look at what’s really happening—and how a recent shift in investor behavior might actually work in your favor.

Big Investors Are Stepping Back

While it felt like institutional investors were dominating the market, the reality is their overall footprint has always been smaller than most people assumed. And now? They're pulling back even more.

Today, big real estate investors aren’t buying as many homes. In fact, they’re actually selling more than they’re buying.

In fact, many large investment firms are offloading homes instead of buying them. According to Parcl Labs, 6 out of the 8 biggest single-family rental investors in the U.S. sold more homes than they purchased in Q2 of 2025.

Here’s a stat that really puts things in perspective: according to Dominion Financial, for every home big investors are buying, they’re selling about 1.75.

Why Are Institutional Investors Backing Off?

It comes down to dollars and cents. Home values aren’t climbing like they did a few years ago, but the cost of maintaining rentals is. That squeezes profit margins—and for investors, this is a business.

Most institutional buyers purchase homes to rent them out. But rising expenses are cutting into returns, so many are pausing new acquisitions or unloading properties altogether.

Now, contrast that with your situation. You’re buying a home to live in, not just to turn a quick profit. Homeownership is a long-term investment—and historically, home values have increased over time. While investors sit on the sidelines, you’ve got a window of opportunity: less competition and the chance to benefit from future appreciation.

What It Means for You

A recent survey found that about 55% of real estate investors aren’t planning to grow their portfolios anytime soon. That’s good news for buyers—fewer bidding wars with all-cash offers and more inventory hitting the market. It could be the perfect time to make your move.

Bottom Line

If you’ve been putting your home search on pause, this might be the moment to take a fresh look. With fewer big investors in the mix and more homes coming onto the market

Partnering with a knowledgeable local real estate agent can give you a clearer picture of what’s out there, what fits your needs, and how to navigate today’s evolving market with confidence.t, the playing field is shifting—and that could work in your favor.

So, what kind of home would you be excited to call your own this year? Let’s find it—together.