Take Advantage of Less Buyer Competition From Investors

With less buyer competition from big institutional investors, the playing field is starting to shift. Remember the chatter in the headlines about all the homes they were buying? If you were thinking about buying a home yourself, you may have wondered how you’d ever be able to compete with that. Here’s the thing. That’s not the challenge so many people think it is, especially right now.

Let’s break down what’s really going on in the housing market and why the recent shift in how investors are approaching homebuying could work to your advantage. With many stepping back, there is now less buyer competition from investors, giving you a better chance to find and secure the right home.

Large Investors Are Pulling Back

The truth is institutional investors never represented as big a share of the housing market as people think. And now, they’re backing off even more. Today, big real estate investors aren’t buying as many homes. In fact, they’re actually selling more than they’re buying.

According to data from Parcl Labs, 6 out of 8 of the largest institutional single-family rental investment companies in America sold more homes than they bought in the second quarter of 2025 (see graph below):

And here’s the stat that really puts things into perspective. According to Dominion Financial, for every home being bought by big investors, about 1.75 are now being sold. This shift means fewer properties are being taken off the market by institutional buyers, which is helping create less buyer competition overall. For everyday homebuyers, that could translate into more inventory and a smoother path to finding the right home.

What’s Causing Big Investors To Change Course?

The reason institutional investors are not buying as many homes now compared to recent years is actually pretty simple. Home values are not rising as quickly as they were before, while the costs tied to rental maintenance have increased. Since most of these investors purchase homes to rent them out, higher expenses are cutting into their profit margins. And remember, for investors, homebuying is not emotional. It is strictly a business decision. As they step back, this trend is contributing to less buyer competition in the market and creating more opportunity for individual buyers.

But you’re not buying a home just for this year or next. You’re buying a place to build a life, and that’s a long-term play.

Historically, home values tend to rise over time. So, while investors may be sidelined by what’s happening right now, you’re in a different position entirely. You have the chance to buy while competition is lower and benefit from potential long-term price appreciation – something most investors are choosing not to wait for as they focus on shorter-term returns.

What Does All This Mean for You?

According to a recent survey, about 55% of real estate investors have no plans to grow their rental portfolios now or in the near future. With big investors stepping back, that means less competition from deep-pocketed buyers. And since they’re adding to today’s for-sale inventory, it also creates more options for you.

Bottom Line

If you’ve been holding off on buying a home, now might be the perfect time to take another look at your options. With less buyer competition in the market, especially as investors continue to pull back, you could have a better chance of finding the right property without the pressure of bidding wars. This shift could make your path to homeownership more achievable than it has been in recent years.

Let’s connect so you can get expert guidance on what’s available and what might be a good fit for you. What kind of home would you be excited to make yours this year?

The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. Jess & Co. Real Estate, LLC does not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. Jess & Co. Real Estate, LLC will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein.