Press Release
Institutional investors pullback ahead of new housing restrictions
IRVINE, Calif., September 3, 2026 – Cotality, a leading global property information, analytics, and data-enabled solutions provider, today released its latest update on investor activity in the U.S. housing market.
Investors accounted for 27% of all U.S. single-family home purchases from March to June 2026, down slightly from 28% at the close of the first quarter.
This modest decline follows standard seasonal patterns as owner-occupied buyers become more active during the summer months. Despite the slight dip, investors maintain an outsized market presence relative to historical norms, remaining well above the sub-20% levels typical of the 2010s.
“The investor share dropped in Q2 2026, but that is par for the course in the summer,” said Thom Malone, Principal Economist at Cotality. “The more compelling story lies in overall volume. Investors executed roughly 40,000 fewer purchases compared to Q2 2025, with mega investors accounting for about 10,000 of that decline. That represents a significant drop given their small market presence, suggesting that proposed restrictions on institutional investors had an immediate chilling effect. The true test will occur in Q3, now that the legislative framework and exemptions are finalized. We will see whether this was a permanent retreat or just a pause while investors waited for a clear path forward.”
Share of home purchases made by investors by month, January 2018 – June 2026
Data source: Cotality Public Records Data
That 40,000-unit drop brought total Q2 investor acquisitions down to 273,000—a decline sharper than the 70,000-unit pullback seen among owner-occupied buyers, who hold double the market share.
When benchmarked against Q2 2020–2022 averages, investor transactions were down 12%, compared to a much steeper 40% deficit for owner-occupants.
Monthly home purchases made by investors and non-investors1, January 2018 – June 2026
Data source: Cotality Public Records Data
Legislative impacts and investor tiers
The 21st Century Road to Housing Act—which restricts single-family property acquisitions for entities owning 350 or more homes—was signed into law on July 11, 2026. However, market behavior reflected the policy change as early as January when the measure was first introduced:
- Mega Investors (1,000+ properties): Averaged ~4,500 monthly purchases in Q1 2026, marking a 40% decline compared to Q1 2025.
- Large Investors (100–999 properties): Acquisition volume fell by 21% year-over-year.
- Medium Investors (10–99 properties): Purchases contracted by 17%.
- Small Investors (3–9 properties): Experienced minimal disruption, with transaction volume dipping just 3%.
Q3 will serve as the baseline for evaluating the law’s long-term impact. Clearer guidance surrounding statutory exemptions—such as inter-investor transfers and properties that receive substantial improvements—may prompt institutional capital to re-enter the market.
Share of investor purchases by investor size, January 2018 – June 2026
Data source: Cotality Public Records Data
Geographic trends: Population growth and regulatory drivers
Investor deployment is closely aligned with high-growth metropolitan statistical areas (MSAs) where strong demographic trends support ongoing rental demand.
Year-to-date, Dallas, Houston, and Atlanta rank highest in both investor and non-investor purchases, with Phoenix and Los Angeles rounding out the top five. When looking at investor share, the top five states are Georgia, California, New Mexico, Kansas, and Texas.
California is the notable exception to the population-growth pattern. Despite flat overall population growth, investor interest remains elevated. This is probably driven by municipal mandates that expedite the approval of Accessory Dwelling Units (ADUs), which create opportunities for expansion and value-add strategies.
Top 20 MSAs by total investor purchases, January–June 2026
Data source: Cotality Public Records Data
Investor share by state, January – June 2026
Data source: Cotality Public Records Data
Market outlook
While second-quarter market share changes followed historical seasonality, broader structural shifts suggest the market will change for the rest of 2026. Clearer regulations may bring institutional investors back in Q3, while private equity firms might explore other asset types.
In both cases, smaller local investors are ready to take available investments. Due to ongoing affordability issues, strong demand for rentals ensures that investors at all levels will play an important role in market liquidity.
Methodology
The Cotality Investor Purchase Indicator defines an investor as a buyer that owns three or more properties. Small investors are defined as those with fewer than 10 properties, medium investors as those with fewer than 100, large investors as those with fewer than 1,000, and mega investors as those with more than 1,000. It is an investor purchase indicator, rather than an investment purchase indicator, meaning that it identifies purchases made by investors but makes no judgment about how the property will be used. For this analysis, only arm’s-length purchases of single-family homes (detached houses and townhomes) are considered.
About Cotality
Cotality accelerates data, insights, and workflows across the property ecosystem to enable industry professionals to surpass their ambitions and impact society. With billions of real-time data signals across the life cycle of a property, we unearth hidden risks and transformative opportunities for agents, lenders, carriers, and innovators. Get to know us at www.cotality.com.
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