Investor home purchases recorded a mild 2% year-over-year uptick during the fourth quarter of 2025, totaling under 50,000, although activity was significantly stronger in several West Coast markets.
According to new data from Redfin, nearly one in 10 (9.2%) homes sold by investors in December resulted in a loss, up from 7.1% a year earlier. However, most investors selling their homes made a handsome profit – the median capital gain on homes sold by investors was $185,918, near an all-time high. Still, Redfin pointed out the high rate of median capital gain was largely because home prices are near their record high.
“Some investors are keeping their pocketbooks closed, which eliminates competition for everyday first-time buyers,” said Chen Zhao, Redfin’s head of economics research. “The pandemic-era investor frenzy that crowded out so many first-time homebuyers has largely fizzled. There are still obstacles for buyers, like high costs, but investors are no longer one of them—at least in many parts of the country.”
Investor home purchase activity varied regionally during the fourth quarter. Investors were buying more homes on the West Coast, with upswings in Seattle (a 37% year-over-year increase), Portland, OR (up 27%), and San Francisco (up 24%). Redfin attributed this regional activity to elevated sales prices that kept many residents out of the housing market.
On the flip side, investors were buying fewer homes in Florida. Investor purchases fell 16% year-over-year in Orlando, while activity was also down in Fort Lauderdale (-15%) and Jacksonville (-7%). A Sunshine State anomaly was the West Palm Beach, where investor purchases surged 17% year-over-year.
When measured by property type, investor purchases of high-end homes increased 5% year-over-year in the fourth quarter while purchases of mid-priced homes ticked up 2% and acquisitions of low-priced homes were flat. Investors purchased 3% more single-family homes compared to one year earlier while purchases of multifamily properties increased 2%, purchases of condos inched up 1%, and townhouse purchases dropped by 8%.
