For Real Estate Investors, the West Coast Is Hot and Florida Is Not
- Investor activity is sluggish on a national level, with purchases rising just 2%—but it varies widely from metro to metro.
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In
Seattle , investor purchases jumped 37% year over year in the fourth quarter—the biggest gain among the metros Redfin analyzed.Orlando posted the biggest decline, down 16%.
Investor activity varies widely from metro to metro. Investor home purchases are up by double digits in
Nationwide, investor activity has flattened after wild swings during the pandemic because it doesn’t make financial sense for flippers or landlords to buy property in much of the country. High home prices and mortgage rates are pricing many individual buyers out of the market, slowing sales, and they’re also pricing investors out of the market.
Economic uncertainty is also an obstacle for both individuals and investors thinking about making a big purchase. Many investors looking to flip a home and sell it for a profit are jittery about the rising cost of building materials and labor shortages in the construction industry. Landlords are nervous about rental price growth slowing, potentially limiting profits.
Nearly one in 10 (9.2%) homes sold by investors in December sold at a loss, up from 7.1% a year earlier. The rising chance that homes owned by investors won’t sell for a profit is one factor giving them pause. Still, most investors selling their homes are earning money: The median capital gain on homes sold by investors is
The bright spot of sluggish investor activity: It can be good news for individual homebuyers.
“Some investors are keeping their pocketbooks closed, which eliminates competition for everyday first-time buyers,” said
Investor Purchases Are Rising Most in
Investors are buying more homes on the
Investor activity is picking up in expensive
Institutional investors also often pay cash, giving them an advantage over individual buyers. Smaller mom-and-pop investors who can afford to buy investment properties are using it as a wealth-building strategy.
Investors are buying fewer homes in
There are several reasons investors have been pulling back from
Note that in
Investors Bought Nearly 1 in 5 Homes That Sold in the Fourth Quarter
Nationwide, investors purchased 18% of homes that sold in the fourth quarter, unchanged from a year earlier. The flat market share signals sluggish activity from both investors and individual homebuyers.
Investor purchases of high-end homes increased 5% year over year in the fourth quarter, likely because investors see opportunity in today’s luxury market, which is more competitive than the non luxury market. Purchases of mid-priced homes ticked up 2%, while purchases of low-priced homes were flat.
Investors purchased 3% more single-family homes than a year earlier in the fourth quarter. Purchases of multi-family properties increased 2%, while purchases of condos inched up 1%. Investors bought 8% fewer townhouses than a year earlier.
To view the full report, including charts, full metro-level data and methodology, please visit:
https://www.redfin.com/news/investor-report-q4-2025
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