Core Insights - Investors' share of home purchases increased to 10.8% in Q2 2025, up from 10.7% a year prior, as typical buyers faced affordability challenges [3][12] - Overall home sales declined by 4.2% year-over-year, while investor purchases fell only 2.7%, indicating a growing presence of investors in a shrinking market [3][12] - Investors are paying significant premiums in high-cost areas, with median purchase prices in some states exceeding typical local sales prices by up to 35% [2][4] Investor Activity by Region - In Western and coastal states, investors paid up to 35.1% above the median sale price in Montana, with other states like Utah and California also showing high premiums [2][4] - Conversely, in more affordable states like Michigan and Maryland, investors targeted lower-priced homes, with discounts exceeding 50% below typical sales prices [7][9] - Major metros such as Los Angeles and New York City saw significant premiums paid by investors, reflecting strong rental demand and affordability constraints [5][6] Market Dynamics - The gap between investor purchases and sales widened, with investors buying approximately 41,000 more homes than they sold in the first half of 2025, intensifying competition with typical buyers [12][13] - A clear split in investor strategies is observed, with some focusing on affordability and rental yield, while others are willing to pay premiums in markets with strong rental demand [14] - The concentration of investor activity remains in affordable, high-demand regions, with states like Missouri and Mississippi recording the highest investor buyer shares [10][11]