Business
Investors are making up the highest share of homebuyers in 5 years
A version of this article first appeared in the CNBC Property Play newsletter with Diana Olick. Property Play covers new and evolving opportunities for the real estate investor, from individuals to venture capitalists, private equity funds, family offices, institutional investors and large public companies. Sign up to receive future editions, straight to your inbox.
Real estate investors, both individual and institutional, bought one-third of all single-family residential properties sold in the second quarter of 2025. That is an increase from 27% in the first quarter, and the highest percentage in the last five years, according to a report from CJ Patrick Co., using numbers from BatchData, a real estate data provider. Investors accounted for 25.7% of residential home sales in 2024.
While the share of sales is higher, the raw numbers are lower. Investors in the second quarter of this year bought 16,000 fewer homes than a year ago, but home sales overall were much weaker this year than last year. That accounts for the gain in the investor share. Investors continue to own about 20% of the 86 million single-family homes in the country.
A sold sign is posted in front of a home for sale on Aug. 27, 2025 in San Francisco, California.
Justin Sullivan | Getty Images
“While investors purchased more homes than they sold in the second quarter, they did sell over 104,000 homes, with 45% of those sales going to traditional homebuyers,” said Ivo Draginov, co-founder and chief innovation officer at BatchData. “So in addition to the important role investors continue to play providing necessary liquidity to a weak home sales market, they’re also bringing much-needed inventory – both rental properties, and homes for owner-occupants – to the market.”
While large institutional investors continue to get most of the headlines in the single-family rental space, small investors account for more than 90% of the market. These are individuals owning 10 properties or less. The largest investors, those with 1,000 or more properties, make up just 2% of all investor-owned homes.
Unlike individuals, institutional investors are now selling more homes than they buy and have been for six consecutive quarters. The nation’s largest landlords, Invitation Homes, Progress Residential, American Homes 4 Rent and FirstKey Homes, all sold more homes in the third quarter of this year than they purchased, according to an analysis from Parcl Labs.
“They’re not exiting the space, just diverting capital into build-to-rent communities. But this shift means less competition for small investors and traditional homebuyers, while also adding more rental supply, which is needed in today’s market where younger adults often opt to rent since they can’t afford to buy a home,” said Rick Sharga, founder and CEO of CJ Patrick Co.
Looking regionally, Texas, California and Florida have the highest number of investor-owned homes. This is largely because they are also the most populous states. The states with the highest percentage of investor-owned homes are Hawaii, Alaska, Montana and Maine. These are also heavy tourism states.
Investors have always focused on lower-priced homes because those can offer the best profits in resale years later. In the second quarter of this year, investors paid an average of $455,481 per home — well below the national average price of $512,800, according to the CJ Patrick report. It was, however, the highest average investor price in the past six quarters, since home prices overall continue to climb.
Investor homes are typically either smaller or in less expensive housing markets. Large investors bought even cheaper homes than the overall pool, with their average purchase price at $279,889. Their average sale price was $334,787. Institutional investors are concentrated most in the Midwest and South, where prices are below the national average.
Business
What Is Core-and-Satellite Strategy And How Can It Help Investors Navigate Market Volatility?
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The ‘core’ typically makes up around 60–70% of a portfolio and is meant to deliver stable returns while serving as its foundation.
Small and mid-cap stocks produced 14-17% returns in the last 20 years. (representative image)
Navigating financial markets often seems like an uphill task as investors need to balance the desire for growth with the fear of sudden downtrends. When markets fall, people struggle to find the right direction while chasing high returns and protecting their wealth from volatility. Too much risk can lead to panic mode, while excessive caution could leave your portfolio lagging behind inflation and long-term goals.
A practical solution here is the core-and-satellite strategy emerges as a practical solution. Under this, investors get to combine a stable “core” of diversified, low-cost investments with the dynamic “satellite” portion to target higher-growth opportunities. Not only does it allow them to achieve resilience and flexibility, but the strategy also ensures steady progress even during turbulent times. By following this dual approach, people can cushion portfolios against market downfalls.
How Does It Work?
According to Moneycontrol, the “core” usually accounts for nearly 60-70 per cent of the portfolio. It is specifically designed to provide steady returns and act as the anchor of your portfolio.
It comprises stable, low-cost funds:
1. Large-cap equity funds: Your hard-earned money gets invested in established companies having proven business models. Often, it is seen that they appear to fall less compared to mid and small-cap funds.
2. Flexi-cap funds: The fund managers keep shuffling the investment between large, mid and small caps, depending on the ongoing condition of the market. In simple terms, these add flexibility and diversification to the portfolio.
3. Hybrid funds: A combination of equity and debt, these are meant for growth and stability.
However, investors must note that even the “core” is not free from risk. Moneycontrol report highlights how markets fell nearly 14 per cent between October 2024 and February 2025.
The Role of Satellite Investments
Keeping core aside, the remaining 30-40 per cent is what makes up satellite investments.
“The satellite portfolio allows tactical exposure to high-growth sectors, themes, or strategies,” the report quoted Kirang Gandhi, a Pune-based financial mentor, as saying.
This includes mid-cap and small-cap funds that hold higher growth potential. Also, it features international equity funds.
This highlights that it is the growth engine of the portfolio, but also carries substantial risk.
A key part of the core-and-satellite approach is “balance,” where the core allows the money to grow steadily and the satellite portion adds more potential without putting the portfolio at risk.
In the last 20 years, the small and mid-cap indices have generated nearly 14-17 per cent returns on an annual basis, leaving behind large-cap indices. Investors must note that falls are more frequent in mid and small-cap stocks.
Using the core-and-satellite strategy, investors get to diversify their portfolio without making it too complicated.
Kirang Gandhi said this strategy combines safety with smart opportunity for Indian investors and avoids overexposure.
“It brings structure, discipline, and clarity to long-term wealth building without chasing trends,” Gandhi concluded.
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January 10, 2026, 13:40 IST
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BENGALURU: Masayoshi Son-led SoftBank Group pared its holding in Ola Electric Mobility to 13.5% from 15.6%, in what appears like a staggered exit from the electric 2-wheeler maker that was once among its marquee India bets. SVF II Ostrich (DE), a SoftBank affiliate and Ola Electric’s second-largest shareholder after founder Bhavish Aggarwal, sold 9.4 crore shares through open market transactions between Sept 3, 2025, and Jan 5, 2026, according to a regulatory filing.
Kevin PeacheyCost of living correspondent
Getty ImagesDebt charities say they are receiving an influx of calls as people worry their financial situation has slipped towards becoming unmanageable.
The first weeks of January are usually the busiest time of year for helplines following a particularly expensive period.
Advice charity StepChange said Monday was busier than any single day last year, and credit counselling service Money Wellness said a fifth of those accessing its services at the turn of the year did so between 22:00 and 03:00.
Dave Murphy is working his way out of debt and said demands from creditors could have become overwhelming, but he urged anyone struggling to ensure they asked for help – for their financial and mental wellbeing.
Money Wellness, which runs free debt and money advice services, said thousands of people had accessed its services on Christmas Eve and Christmas Day. Expanded assistance online allows people to increasingly find information outside of normal hours – including overnight.
Sebrina McCullough, its head of advice, said: “The numbers we’re seeing over Christmas and New Year are unprecedented.
“People often feel pressure to celebrate the holidays, even when money is tight, and our data shows many are turning to us late at night when they feel most anxious.”
Pressure of priority bills
StepChange’s website had 3,958 visitors on Christmas Day, and 15,401 on New Year’s Eve and 1 January combined.
Many may have simply been exploring their options, but calls came in thick and fast at the start of the month. While not at the level of the energy crisis of a few years ago, call numbers were notably up on last year.
The Money Advice Trust, which runs National Debtline, said the first working days of January had seen more calls than last year.
Monday was the busiest single day in its history, when 1,365 calls came in.
Concerns are particularly acute for those struggling to pay priority bills such as council tax and rent.
The colder weather could also place extra strain on vulnerable households, with £4.4bn already owed to energy suppliers following a period of high prices, although the government’s cold weather payments have been triggered in many areas.
Charities are urging anyone whose debt has become unmanageable to seek help as soon as possible, rather than making matters worse by ignoring the situation.
That is a view shared by Dave, who has managed to work his way out of difficulty.
A few years ago, he found his previously manageable credit card debt becoming a problem when he was unexpectedly made redundant at the same time as going through a divorce.
“They were two quite dramatic things in six months,” said Dave, who has previously spoken to the BBC about his debt issues.
“The debt was around £20,000 to £25,000 at its height. It became so overwhelming. You feel that you are letting creditors down because you want to do what they ask of you – but you are scared, you are renting, and at times you struggle to get through each day.
“Once you are in a spiral, it is really hard to get out of it.”
He is now working in insurance, his debts are manageable and being paid off, and he said he wanted to help others “to show that you can get through these things”.
Figures published earlier in the week by the Bank of England fuelled concerns that everyday costs were becoming harder for some households to manage without turning to borrowing.
The data showed that credit card borrowing grew at the fastest annual rate in nearly two years in the run-up to Christmas.
The annual growth rate for credit card borrowing increased to 12.1% in November, from 10.9% the previous month – the highest figure since January 2024 when it was 12.5%.
What Is Core-and-Satellite Strategy And How Can It Help Investors Navigate Market Volatility?
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