Investor home buying drops in Kansas and Missouri
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First-time Kansas City homebuyers may finally catch a small break as institutional investors pull back from the city and Missouri and Kansas.
Why it matters: With fewer investor purchases, regular buyers may face less competition, especially in affordable neighborhoods where cash offers often dominate.
By the numbers: Both states saw roughly a 13% drop year-over-year, per ATTOM's latest home sales report, and the Kansas City metro saw a 9% drop.
- In Kansas City, 11.2% of Q1 sales went to institutional investors, down from 12.3% a year earlier.
Yes, but: The Kansas City metro still has the fifth-largest portion of institutional investor sales nationally, according to the report.
Context: ATTOM defines institutional investors as non-lender entities buying 10+ homes annually.
- In the Kansas City metro, firms like Progress Residential and Amherst mostly buy single-family rentals in working-class suburbs, with about 14,000 homes owned in the region by 33 companies and nearly 8,000 held by the top five investors, according to the Mid-America Regional Council.
The big picture: Nationally, investor activity hit its lowest point since 2020, though large firms still made up 6.3% of all home sales.
- In states like California, Oregon and Minnesota, investors are now selling off more homes than they're buying, per Realtor.com.
Between the lines: Investors chase strong rent yields, population growth and landlord-friendly laws. Slower activity in Missouri and Kansas may reflect cooling expectations for near-term returns.
What's next: With institutional buyers pulling back and FHA loans up 18% year-over-year in Missouri, more local families may get space in the market.
- The Q1 report doesn't break out Kansas FHA data.