Mega investors are snapping up properties in these popular metros
Property investors are buying up nearly one-third of listed residential properties across the U.S.—with a new wave of “mega investors” on track to gain an impressive property monopoly in several major metros, including the crime-ridden Tennessee city of Memphis.
According to a new report from real estate analytics firm Cotality, which examined the sale of single-family homes and townhouses purchased between January and June 2025, these mega investors account for a sizable share of homes being bought up in several “sweet spot” cities, where prices remain relatively low—as demand continues to strengthen.
The report reveals that, in January, investors accounted for 32% of single-family home purchases. And while the share of investors had dropped to 29% by June, that percentage was still much higher than the same time in 2024, when investors represented only 25% of all purchases.
As stubbornly high mortgage rates and sky-high price tags continue to sideline first-time homebuyers, the rental market remains strong, incentivizing investors looking for cash flow.
“Investors expanded their market presence significantly in 2025, building on historically high levels,” says Thom Malone, principal economist at Cotality, a data analytics firm.
“This demonstrates their resilience in a high-price, high-rate environment. As these adverse conditions are expected to persist, investors are well positioned to meet rental demand. Their tendency to buy with all cash means high interest rates are less of a deterrent. Plus, current high prices can be offset by strong rental returns.”
Cotality looked at four types of investors: small, medium, large, and mega. An investor is defined as a buyer owning three or more properties. A small investor owns fewer than 10 properties and is the most common investor type, holding a 14% share of the market, according to the report.
Mega investors own 1,000 or more properties across the U.S. While these large-scale investors—likely companies or LLCs—make up the smallest percentage of investors (only 2.2%), this category of investor has more than doubled since early 2023, when mega investors made up a mere 1%.
They have, however, fallen since their peak in the third quarter of 2023 at 3.2%.
Investing in a crime-addled city
Like all types of investors, mega investors like to invest in areas with a strong rental market.
Despite Memphis coming in No. 1 in a recent U.S. News & World Report ranking of the most dangerous cities, mega investors were 6.7% of the investors in the metro.
Never mind the high-crime rate, median home prices here aren’t cheap at $339,950. The average household income is only $53,366, which would make it difficult for the average person to buy a house in this high-interest rate market.
This means more people are forced to rent—and rents remain strong at a median $1,186, according to Realtor.com® data.
Although this is the lowest rent among the top 50 metros, it is 15% higher than before the COVID-19 pandemic, which represents more robust rental growth than major metros like Boston, Chicago, Los Angeles, Atlanta, and Houston.
Additionally, home prices in a potential investor area shouldn’t be so pricey that investors are scared off, concerned they won’t turn a profit. (It’s no coincidence that the Northeast—with its high prices and low inventory—is absent in the rankings.)
“The Memphis market appears to be a perfect sweet spot for investors,” affirms Jake Krimmel, senior economist at Realtor.com®. “Memphis is a relatively cheap market to buy into, and it’s one of the few Southern markets showing resilient demand, meaning potential upside for investors.”
Looking over the longer run, Memphis is one of only five southern markets where median list prices exceed their 2022 level, when the national market peaked, says Krimmel.
“Overall, Memphis remains a cheap market for investors to buy into and one where demand remains strong enough to keep prices up as well—a stark contrast to typical southern metros, like Austin, Miami, or Nashville.”
“With low sticker prices and reliable demand, Memphis looks like a good bet for investors today.”
Mega investor favorite
The favorite city of mega investors is Atlanta, making up 11.4% of investor share. In fact, Atlanta would fall out of the top 20 without mega investor activity.
What about that Southern metro makes it so appealing to the big-time investor?
“Atlanta has the classic characteristics that investors look for such as strong historic population and job growth, that signal rising demand,” says Malone.
“There is also inertia from their decisions during 2021 and 2022. Mega investors built up their portfolios in Atlanta—and now have particular economies of scale in the city that mean it still makes more sense to buy there than another location.”
Atlanta also ranks No. 3 in cities where rent costs the most hours of work at minimum wage, according to Realtor.com.
While Los Angeles has the most investor buyers overall, with a share of 44.2%, it comes in third for mega investors.
And mega investors are snatching up properties in some expensive cities—not just L.A. but San Francisco and San Diego.
“California has a historical investor presence from the post financial crisis period, when a lot of investors moved in to snap up foreclosures and since have developed long running local networks that keep them anchored to the state,” explains Malone.
“Additionally, the recent out-migration from California might mean that these investors reckon that they are able to grab ‘bargains’.”
What mega investing means for the average person
But with mega investors in the buyer pool, what chance does the average person stand of snagging that perfect single-family home in the desired area and for the desired price tag?
“Mega investors make life tough for first-time buyers,” asserts Malone. “Both like to look to buy in the lower end of the market. First-time homebuyers, because they are often limited by not having substantial savings due to their age, and investors because there is more rental demand in those markets.
“Mega investors have multiple ways to outmaneuver the average buyer.”
For example, mega investors have more cash on hand and typically don’t need financing, so they can offer a speedy transaction without mortgage approval or appraisal contingencies.
They are also more able to waive inspection contingencies since they are buying multiple properties and are diversified enough for the occasional unwelcome surprise.
Nor do they live in the property themselves, so they feel less of a need to maintain the property.
“If waiving contingencies isn’t enough, investors can also reach into their deep pockets and simply outbid other buyers,” he adds.
In bad news for the average buyer, absent major changes in interest rates or macroeconomic conditions, the share of investors is expected to fluctuate between 25% and 30% in the foreseeable future, says the report.
“I’ve been getting a lot of calls from investors looking to get into investing here in St. Louis,” says Destiny Simone Minor, of Fathom Realty-St. Louis, who recently sold a $5,700 fire-ravaged single-family home to an investor.
“They know what to do with a house like this. They know what contractors to contact, how to make a profit. It’s low to get in and once they do some improvements, they can really add value.”
She says that St. Louis, ranked #17, is seeing investors coming from all over—including Latin America and even the Congo.
Here are the 20 most popular metros for the mega investor, ranked:
1. Atlanta, GA
Share of mega investors: 11.4%
2. Memphis, TN
Share of mega investors: 6.7%
3. Los Angeles, CA
Share of mega investors: 5.8%
4. Oklahoma City, OK
Share of mega investors: 5.3%
5. Riverside, CA
Share of mega investors: 4.8%
6. San Francisco, CA
Share of mega investors: 4.8%
7. Seattle, WA
Share of mega investors: 4.8%
8. San Diego, CA
Share of mega investors: 4.6%
9. Dallas, TX
Share of mega investors: 4.4%
10. Nashville, TN
Share of mega investors: 3.7%
11. Albuquerque, NM
Share of mega investors: 3.4%
12. San Antonio, TX
Share of mega investors: 3.4%
13. Kansas City, MO
Share of mega investors: 3.4%
14. Tulsa, OK
Share of mega investors: 3.1%
15. Omaha, NE
Share of mega investors: 3.0%
16. Houston, TX
Share of mega investors: 2.9%
St. Louis, MO
Share of mega investors: 2.4%
18. Salt Lake City, UT
Share of mega investors: 2.3%
19. Las Vegas, NV
Share of mega investors: 2.1%
20. El Paso, TX
Share of mega investors: 0.5%
Credit to Nypost AND Peoples
