Investors continue to hold a firm grip on the U.S. housing market, even as higher mortgage rates and slower sales reshape buyer demand.
While large institutional players once defined investor competition, the latest Realtor.com® Investor Report shows a decisive shift toward small, buy-and-hold landlords.
These smaller investors are thriving in affordable markets where discounted prices support steady rental returns—and Milwaukee, Wisconsin have emerged as one of the strongest examples of this trend.
Deep affordability fuels investor demand in Milwaukee
Investor activity remains concentrated in lower-cost metros, particularly across the Midwest and South. While markets like Memphis and St. Louis lead the nation in investor buyer share, Milwaukee stands out for how sharply investors are buying below the market median.
In the Milwaukee-Waukesha metro, investors accounted for 10.5% of home purchases in Q2 2025, slightly higher year-over-year. The pricing gap is substantial. Investors paid a median of $164,000 for homes, compared with $328,000 for the overall median sale price. That 50.1% discount places Milwaukee among the five large metros where investors secure the deepest bargains relative to typical buyers.
State-level data reinforces this strategy. In Wisconsin, investors bought homes at a median price of $175,000 in Q2, while the statewide median sale price was $296,000. The resulting 40.7% discount highlights a focus on lower-priced housing stock, where rental income potential outweighs expectations for rapid appreciation.
These conditions strongly favor small investors. Nationally, small investors accounted for 62.5% of all investor purchases in Q2 2025, one of the highest shares on record. Milwaukee’s modest entry prices and stable rental demand align closely with the income-focused strategies that define this group.
National trends explain Milwaukee’s staying power
Across the U.S., investor participation has remained steady despite a cooling housing market. Investors purchased 10.8% of all homes sold in Q2 2025, edging higher year over year as overall home sales declined more sharply than investor buying, according to Realtor.com® reporting on small investors buying homes.
Investor selling activity has slowed even further. Investor home sales fell 4.1% year over year in Q2, leaving investors as net buyers once again. In the first half of 2025, investors bought roughly 41,000 more homes than they sold, continuing a long-standing pattern that has constrained for-sale inventory nationwide.
The composition of investor demand continues to evolve. Large investors accounted for just 20.1% of investor purchases in Q2, while small investors reached their highest share since 2007. Elevated borrowing costs and moderated price growth appear to be curbing large-scale expansion, while smaller landlords remain active in markets where lower prices make deals pencil out—reflecting how small landlords are shaping the affordable housing market .
Regionally, the Midwest remains a magnet for investors seeking affordability paired with reliable rental demand. Milwaukee fits this mold closely. According to the report, metros like Milwaukee tend to attract income-oriented investors focused on cash flow rather than short-term appreciation, supported by older housing stock, steady employment bases, and favorable rent-to-price ratios.
As Realtor.com® economists note, persistently high home prices and mortgage rates continue to sideline many traditional buyers. That environment keeps investor participation elevated, especially in markets like Milwaukee where deep discounts give small landlords a durable edge. For now, Milwaukee remains firmly positioned as a stronghold for small investors scoring homes at substantial bargains.
This article was produced with editorial input from Dina Sartore-Bodo and Gabriella Iannetta.