SFR Analytics uses a method to identify out-of-state investments by comparing the property deed locations with the mailing addresses of the owners. If the deed and mailing address are in different states, the purchase is classified as out of state.
Transactions are excluded from the report if the mailing address is within a 60-mile radius of the purchased property, regardless of whether it crosses a state line.
National trends since 2019
Out-of-state investment has shown a distinct trend over the past six years. Nonresident buyers accounted for 5.8% of single-family purchases nationwide before the pandemic.
This percentage increased to 7.29% in 2021 due to factors such as remote work, low mortgage rates, and heightened investor interest in Sun Belt and lifestyle-oriented markets.
As borrowing costs rose, the out-of-state share decreased to 5.74% in 2024 and further to 5.56% in 2025.
Although the rate has moderated, it remains higher compared to the period before institutional and small investors expanded into single-family rentals.
Resort towns, select metros lead
Out-of-state investment varies significantly by location.
Resort and vacation destinations are prominent among markets with the highest nonresident homeownership shares in 2025.
Breckenridge, Colorado, topped the list with 34.8% of single-family home purchases being made by out-of-state buyers this year.
Other areas with rates above 25% include Brevard, North Carolina; Jackson, Wyoming; Seaford, Delaware; and Kapaa, Hawaii, reflecting strong demand for second homes and vacation properties.
Among larger metropolitan areas, Florida markets continue to stand out. North Port–Bradenton–Sarasota had a 20.1% out-of-state rate, while Cape Coral–Fort Myers reached 19.5%.
Memphis, Tennessee, and Columbus, Ohio, also had elevated levels of nonlocal investment. Phoenix remained active but experienced a significant year-over-year decline as pricing pressure eased.
Market shift, U-shaped price pattern
Comparing 2024 to 2025 reveals where investor interest is growing and where it is diminishing.
Birmingham, Alabama, saw the largest increase among major metros as out-of-state activity rose by 2.68 percentage points.
Indianapolis and Columbus also experienced significant gains, indicating a shift by large investors towards Midwest and Southeast markets with affordability and strong rent-growth potential.
On the other hand, several markets experienced sharp declines.
Baton Rouge, Louisiana, had the steepest drop, followed by Gulfport–Biloxi, Mississippi; Little Rock, Arkansas; Wilmington, North Carolina; and Las Vegas.
Analysts attribute these declines to cooling conditions in traditional Sun Belt hot spots after years of rapid price appreciation.
Out-of-state investment also varies significantly based on price segment.
The lowest-priced homes had a 6.16% nonresident share, indicating sustained interest from investors focusing on affordable rental housing. Middle-priced homes showed the lowest rates of out-of-state activity, generally between 4.3% and 4.7%.
At the high end of the market, the most expensive homes had a 9.11% out-of-state rate, driven by luxury, vacation, and second-home purchases.
This creates a U-shaped pattern, with nonlocal investors concentrated at the most affordable and most expensive ends of the market, as reported by SFR Analytics.
Who the buyers are
Approximately 30% to 35% of out-of-state purchases nationwide are made by large investors completing 10 or more transactions annually.
These buyers are primarily focused on Sun Belt rental markets and value plays in the Midwest.
Individual investors with smaller portfolios account for about 40% to 45% of activity, while vacation and second-home buyers make up roughly 20% to 25%.
Some markets, such as Fayetteville, North Carolina, and St. Louis, are dominated by large investors, while others in New England and parts of the Mountain West are driven by individual buyers, according to the report.