Updated October 2026
Small investors made up 66.2% of all investor home purchases in the first half of 2026, their highest share in at least 15 years, according to the Realtor.com H1 2026 Investor Report. Small investors are entities with 1 to 10 total purchases. Large and mega investors were net sellers over the same stretch, meaning they sold more homes than they bought.
In Williston and Watford City, that shift looks familiar. The people buying rentals, duplexes, and small commercial buildings here have mostly been local owners with a handful of properties, not national funds.
Are investors leaving the housing market in 2026?
No, but they are buying less, and who is doing the buying has changed. Investors bought about 224,000 homes in the first half of 2026. That is down 7.0% from a year earlier and the lowest first-half total since 2020. Their share of all purchases slipped to 10.7%, from 11.0% in the first half of 2025.
The bigger story is who backed off. Mega investor purchases are down nearly 70% from their first-half 2021 level, and large investor purchases are down about 40%. Non-investor purchases fell about 34.3% over the same period, so the big funds pulled back faster than the market as a whole. Small and medium investors are still net buyers.
| Investor size | Total purchases | First half 2026 |
|---|---|---|
| Small | 1 to 10 | 66.2% of investor purchases (about 148,000 homes). Net buyers |
| Medium | 11 to 50 | Net buyers |
| Large | 51 to 350 | Down about 40% from H1 2021. Net sellers |
| Mega | 351 or more | 5.7% of investor purchases (about 12,700 homes). Sold about 2,500 more homes than they bought |
One detail matters here. Realtor.com uses deed records to find investors who buy through an LLC, partnership, trust, or similar entity. A mom-and-pop investor who buys in their own name doesn't show up in this data. So if you hold rentals in an LLC, the report counts you as one of these small investors.
If you are weighing your first or fifth rental, you are not up against a wall of institutional money. Nationally, small investors are now two out of every three investor purchases.
A national report can show you the trend. It can't tell you whether a specific duplex, fourplex, or shop in Williams or McKenzie County makes sense. Look at what's on our current listings page right now, then send me the address and I'll tell you how I'd run the numbers on it.
Why do investors pay cash so much more often than regular buyers?
The rise of small investors shows up most clearly in how investors pay. In the first half of 2026, 55.5% of investor purchases were all cash, compared with 30.0% across the whole market. That share is down from 59.6% a year earlier and well below the first-half peak of 67.9% in 2021.
| Buyer group | All-cash share, H1 2026 |
|---|---|
| Mega investors | 80.4% |
| Small investors | 56.1% |
| All investors | 55.5% (59.6% in H1 2025) |
| All buyers | 30.0% |
The report gives two reasons. Loans on investment property usually come with higher rates, bigger down payments, and more restrictions. And investors often have more access to capital. As mega investors shrink and small investors grow, cash's overall share falls, because small investors finance more often. About 1 in 4 all-cash purchases had an investor buyer this year, down from 1 in 3 at the 2022 peak.
Financing got harder again this fall. Rates dipped just below 6% in February, then climbed back to 7.4% in the latest data cited by the report. My breakdown of mortgage rates in 2026 covers what that does to a payment, and the Freddie Mac weekly rate survey shows where rates stand this week.
With less cash in the market, a prepared buyer has more room to negotiate on price, repairs, and closing costs. Line up your investment-property financing before you shop, so your offer is as clean as a cash offer.
Where are investors buying the most, and where does Western North Dakota fit?
Investors are concentrated in affordable Midwest and Sun Belt metros. Among the 100 largest U.S. metros by household count, these had the highest investor share of purchases in the first half of 2026:
| Metro | Investor share | YoY change | Median investor price |
|---|---|---|---|
| Memphis, TN-MS-AR | 20.5% | Down 3.2 pts | $126,500 |
| St. Louis, MO-IL | 20.0% | Down 0.7 pts | $125,000 |
| Kansas City, MO-KS | 19.1% | Down 1.1 pts | $250,000 |
| Wichita, KS | 18.0% | Up 0.3 pts | $185,000 |
| Toledo, OH | 17.3% | Up 4.1 pts | $110,000 |
No North Dakota metro is big enough to make that list, so the report doesn't measure Williston or Watford City directly. Our closest neighbors in the data are Minneapolis-St. Paul at 7.8%, Omaha at 8.2%, and Des Moines at 8.5%, all below the 10.7% national average. The report does single out Montana as one of three states where small investors alone account for more than 10% of all home purchases. That matters to anyone buying near the state line around Fairview and Sidney.
What I can add is what our team at Proven Realty sees on the ground. Investment demand here follows the oil economy. When Bakken activity picks up, demand for workforce rentals, crew housing, shop space, and yard land follows. You can track that activity yourself through the North Dakota Department of Mineral Resources. For the bigger picture on what moves values here, see what is driving North Dakota property prices.
Buying an investment property in Western North Dakota is also a bet on the oil cycle. Buy what still works at the bottom of the cycle, and count the top as a bonus.
Should a small investor in Williston look beyond houses?
The Realtor.com report only tracks residential purchases. Small investors here have more options than that: small multifamily, mixed-use buildings, shop condos, light industrial space, and land all sell in this market.
As a 2024 Crexi Platinum Broker, I spend a lot of time on the commercial side, and the same discipline applies. Know your rent or lease comps, know your vacancy risk, and know who your tenant will be when the rigs slow down. A shop leased to a stable local business can be steadier than a house rented to a rotating crew. If raw land is more your speed, my post on buying land in North Dakota is a good place to start.
Your first investment doesn't have to be a single-family rental. Match the property type to your capital, your time, and how much tenant risk you can carry.
How does a first-time investor buy property in North Dakota?
Start where any buyer starts: financing, a budget, and knowing the area. My guide on how to buy a property in North Dakota walks through the full process. An investor needs four more things on top of that:
- A lender who handles investment property and explains the down payment and rate difference up front
- Real rent or lease numbers for that exact neighborhood or property type, not a national average
- A plan for a slow year, because in the Bakken another slow year is always coming
- A decision with your CPA or attorney on whether to buy in your own name or through an LLC
At Proven Realty, my first conversation with a new investor is rarely about a property. It's about what they want that property to do for them in five years.
Common questions about small investors in 2026
What counts as a small investor in the Realtor.com report?
A small investor is a corporate entity, such as an LLC, partnership, or trust, with 1 to 10 total purchases in the data. Medium investors have 11 to 50, large investors 51 to 350, and mega investors 351 or more. People who buy in their own name aren't counted.
How many homes did investors buy in 2026?
About 224,000 in the first half of 2026, down 7.0% year over year and the lowest first-half total since 2020. That was 10.7% of all home purchases, down from 11.0% a year earlier.
Are big Wall Street investors still buying homes?
Much less than before. Mega investor purchases are down nearly 70% from the first half of 2021, and both large and mega investors sold more homes than they bought in the first half of 2026.
Why do investors pay cash more often?
Investment property loans usually carry higher rates, bigger down payments, and more restrictions, and investors often have more access to capital. In the first half of 2026, 55.5% of investor purchases were all cash, compared with 30.0% for the whole market.
What do investors typically pay for a home?
The median investor purchase was $295,000 in the first half of 2026, 22.4% below the $380,000 non-investor median. That suggests small investors often compete with entry-level buyers or focus on lower-priced markets.
Is Williston, ND a good place for a small investor?
It can be, if you buy for the long term and plan around the oil cycle. Demand for rentals, shop space, and land tends to rise with Bakken activity, so the best deals are the ones that still work when activity slows.
Does the Realtor.com report include North Dakota?
Not at the metro level. Its metro analysis covers only the 100 largest U.S. metros, and none are in North Dakota. For a read on Williston or Watford City, you need local listings, rents, and recent sales.
The national data has caught up to what Western North Dakota has looked like for years: most investors are local owners with a few properties and a long view. Less cash in the market and more inventory to choose from give a prepared small investor a better shot at good terms than the last few years did.
EP
Proven Realty brokered by eXp
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