Realtor.com data shows large investors hold outsized share of homes in Sun Belt metros

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Realtor.com data shows Memphis leads with 19.2% of single-family homes owned by investors, followed by Birmingham at 15.7% and Raleigh-Cary at 15%.
Sun Belt markets with relatively affordable and undervalued housing attract institutional investors, increasing single-family home rentals as homeownership rates decline and rental demand rises.
President Donald Trump proposes banning large investors from single-family home purchases, intensifying policy debate as investor concentration remains localized in high-growth, affordable markets.

Metro rankings show strongest concentration in the South

The list is led by Memphis, Tennessee-Mississippi-Arkansas, where investors own 19.2% of single-family homes, the highest share among the 10 metros cited. Birmingham, Alabama follows at 15.7%, while Raleigh-Cary, North Carolina stands at 15% and Dallas-Fort Worth-Arlington, Texas reaches 13.9%. Charlotte-Concord-Gastonia, North Carolina-South Carolina posts 13.5%, Atlanta-Sandy Springs-Roswell, Georgia records 13.2%, and San Antonio-New Braunfels, Texas comes in at 12.2%.Winston-Salem, North Carolina has a 12% total investor share, while Indianapolis-Carmel-Greenwood, Indiana stands at 11.8%. Colorado Springs, Colorado is the only metro on the list below a 10% threshold, at 9.7%. In all other markets listed, roughly one in 10 or more single-family homes is owned by an investor, underscoring how concentrated ownership has become in selected cities.

Affordable housing markets attract institutional capital

Krimmel says the Sun Belt has been a leading source of relatively affordable housing in recent years, which makes the region especially attractive to investors. He says some housing stock appears undervalued and enters the market at a time when homeownership rates decline and demand for rental properties rises. That combination creates an opening for firms seeking scale in single-family rentals.The article notes that major firms such as BlackRock draw attention during the pandemic for buying homes when prices fall and then renting them out. Krimmel adds that, in some cases, institutional ownership expands rental options for households that cannot afford to buy in those same neighborhoods. Even so, the investor presence continues to draw criticism from prospective buyers who say profit-driven strategies make homeownership harder to achieve.

Policy debate intensifies around investor home purchases

The concentration of investor ownership is also feeding into the national policy debate over housing affordability. The article says President Donald Trump is targeting large housing investors with a plan to ban them from purchasing single-family homes. That proposal reflects a broader concern that deep-pocketed buyers can outbid individuals in tight local markets.The data suggests the issue is not evenly spread across the country, but instead is centered in specific regional markets where affordability, population growth, and rental demand intersect. For the housing sector, that means investor activity remains a localized business and policy issue rather than a uniform national trend. Markets with elevated investor ownership are likely to remain under closer scrutiny from homebuyers, policymakers, and real estate analysts.

We previously reported on a rebound in U.S. personal bankruptcy filings and a sharp rise in cases among adults aged 25 to 35. That update linked the shift to higher living and housing costs, weak wage growth, and easier access to unsecured borrowing, with buy now, pay later products and online betting adding to debt burdens for some younger consumers.

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