While investors aren’t purchasing as many single-family homes compared to prior years, they are selling more of these properties, according to a new report from Realtor.com.
In Massachusetts, 8.1 percent of homebuyers were investors in 2024, while the share was slightly higher in Connecticut (9.3 percent). These shares were relatively the same as they represent an increase of 0.7 percent year-over-year, while the share remained flat in the Nutmeg State.
But the share of investor sellers increased in 2024. Investor selling hit a record high with 10.8 percent of sellers representing investors in 2024 across the United States, the highest investor seller share in the data’s history.
“Investor trends signal a transition,” Danielle Hale, chief economist at Realtor.com, said in a statement. “Nationwide, investors picked up more homes on net in 2024, as smaller investors were a growing majority of investor buyers. But with investor selling at a new high, the market saw the smallest net investor buying activity in five years, lessening one of the notable headwinds for entry-level buyers who often compete with investors.”
New England hasn’t seen the same increase evident across the United States. In Massachusetts, investor seller activity dropped by 0.2 percent, while in Connecticut it dropped by 0.5 percent.
Small investors, defined as entities that have purchased fewer than 10 homes, are taking up a larger share of the purchase pool, according to the report. They made up 59.2 percent of investor purchases, the highest share in the data’s history. In contrast, large investor activity, which includes entities that have purchased 50 or more homes, fell to 21.7 percent of purchases, the lowest since 2007.