Are Big Investors Really Buying All the Homes? What the Data Actually Shows

If you spend time online, you have probably seen the claim that big investors are buying up all the homes. For buyers who have lost out on offers or feel priced out, that idea can feel believable.

But when you step back from the headlines and look at the data, the story is far less dramatic.

Here is what is actually happening and what it means for buyers and sellers in Silicon Valley.

What the Numbers Really Say

According to research from John Burns Research & Consulting, large institutional investors who own one hundred or more homes made up just 1.2 percent of all home purchases in the third quarter of 2025.

That means roughly one out of every one hundred homes sold went to a large investor.

This level of activity is not unusual. In fact, it is well below the recent peak of 3.1 percent in 2022. Even at that higher point, institutional buyers still represented a small share of the overall market.

Why It Feels Bigger Than It Is

This topic gets attention for a couple of key reasons.

Investor activity is not evenly spread across all markets. In certain areas, it can feel more concentrated, which makes competition seem more intense for buyers.

Another issue is how broadly the word "investor" is used. Headlines often group large Wall Street firms together with small local investors who may own one or two rental homes. Those are very different buyers, but when they are combined into one statistic, the impact sounds much larger than it really is.

What This Means for Silicon Valley Buyers and Sellers

In Silicon Valley, affordability challenges are driven far more by limited housing supply, strong demand, and years of underbuilding than by large institutional investors.

For buyers, competition is usually coming from other households, not corporations. Understanding pricing, local inventory, and offer strategy matters more than worrying about institutional buyers.

For sellers, this context is important as well. Most buyers are still people planning to live in the home. Pricing accurately and preparing the home well remain the biggest drivers of a successful sale.

The Bottom Line

Big investors exist, but they account for a very small portion of home purchases.

If you want to understand what investor activity actually looks like in your specific Silicon Valley neighborhood and how it affects your options, a local conversation can help cut through the noise.

Sometimes a little context changes everything.