Lower-Priced Homes Draw the Most Investor Competition Nationally

Investors purchased homes in the bottom third of local markets at a rate of 22.9 percent in the third quarter of 2024, according to an analysis by Redfin covering 39 of the most populous metro areas. That figure stood well above the investor share in other price segments, placing investor activity squarely in the same territory many first-time buyers target.

The pattern creates a noteworthy dynamic: those entering the market with limited capital may find themselves competing not only with other individual buyers but also with investors seeking rental inventory or renovation projects in the most accessible price range.

The investor share of all homes sold nationally stood at 15.9 percent in the third quarter of 2024, the lowest level since the end of 2020, according to Redfin's tracking of purchase records from 39 metro areas. The number of homes purchased by investors dropped 2.3 percent year-over-year in the same quarter.

Even as overall investor activity declined, the concentration in lower-priced properties remained pronounced. The 22.9 percent investor share in the bottom third of local markets suggests that when investors do purchase, they focus disproportionately on homes priced below the middle of their respective markets.

One strategy that may allow buyers to compete in this environment involves purchasing a multifamily property, living in one unit, and renting out the others. A study published in July 2026 by Lower, a digital mortgage platform, and its portal Movoto ranked cities with populations over 100,000 by accessibility for this approach.

Shreveport, Louisiana ranked first nationally in that analysis. The median list price for two-to-four-unit properties in Shreveport stood at $115,000 in the study, and the estimated down payment at 3.5 percent came to $4,025, the lowest entry point among cities analyzed. The study's ranking was based on inventory availability and median list prices for active multifamily listings.

As an example, a buyer purchasing at the median price in Shreveport and putting down $4,025 would finance the remainder. The 3.5 percent calculation reflects FHA-style parameters, though individual lenders may require higher down payments through overlays, and the study notes that qualification typically requires meeting minimum credit standards.

A September 2024 survey of 764 Americans who invest in residential real estate, conducted by Clever Real Estate, found that 41 percent reported higher income from their real estate investing than a year earlier. The same survey found that 51 percent of respondents said keeping up with local rental regulations was challenging.

Nationally, the median monthly owner cost stood at $2,035 in 2024, up from $1,960 the previous year, according to a figure cited by Amerisave. Rising owner costs could influence both the calculus for buyers considering house hacking and the rental rates investors need to cover expenses, though individual outcomes vary widely by location and property type.

Buyers exploring lower-priced properties may want to ask their lender about programs that allow multifamily purchases with lower down payments, including whether overlays apply in their situation. Understanding the full financing picture, including qualification requirements and any restrictions on rental use, matters before committing to a purchase strategy.

For those considering rental property or house hacking, researching local rental regulations in advance may help avoid surprises. The survey finding that a majority of investors find compliance challenging suggests that this step deserves attention early in the process, not after closing.

Mortgage rates have moved upward in recent days following the Federal Reserve's September rate decision, with both thirty-year and fifteen-year fixed mortgages now sitting in the mid to high 6s, while five-one adjustable-rate mortgages have landed in the high 6s. This shift is significant for Kentuckiana borrowers who have been watching rate trends closely over the past several months.

For those who locked in loans when rates were in the low to mid 6s earlier this year, the current environment underscores just how valuable that timing was—those existing mortgages now represent some of the lowest financing costs available in two years. If you've been considering a refinance, the window that opened during the summer months has begun to narrow, making it worth a conversation with your lender about whether a refinance still makes sense for your situation.

On the purchase side, rising rates mean pre-approval amounts have contracted slightly as borrowing power decreases with each uptick. For buyers in Kentuckiana, this makes it more important than ever to lock in a pre-approval number before beginning your home search—knowing your true purchasing power now can save time and prevent disappointment later. If you've watched your home's equity grow alongside rising property values this year, a cash-out refinance or home equity line of credit remains a powerful tool to access that value at today's rates, particularly if your existing mortgage carries a significantly lower rate than what's currently available.