How Local Investors Shape Colorado Home Sales in 2025

By Derek and Mariana Wagner

Since launching their real estate careers together on September 11, 2001, Derek and Mariana Wagner have been a trusted team in the Colorado Springs market for over two decades.

Have you noticed how every headline seems to claim investors are buying up all the homes, leaving nothing for everyday buyers? It’s easy to believe: big Wall Street firms snapping up entire neighborhoods. But the reality is more nuanced.

While investors are active, it’s not the corporate giants making the biggest impact; local players are quietly shaping the market. Here’s what that means for sellers, buyers, and home values:

In 2025, about one in three homes nationwide will go to investors. Surprisingly, corporate giants like Blackstone or Invitation Homes account for only 1% of single-family home sales. The remaining 32% are purchased by small and mid-sized local investors: flippers, rental owners, and mom-and-pop groups active in our communities.

How local investors support home values. Local investors help stabilize home values by creating a “floor,” a baseline price that homes rarely drop below. This stability protects neighborhoods and gives homeowners confidence when listing their property. Even if another buyer doesn’t appear, sellers know a cash offer from an investor is often available as a fallback.

Investor activity can be a big advantage for sellers. Local investors usually make clean, cash-based offers with minimal contingencies and fast closings. For homeowners looking for a smooth transaction, this can mean quicker sales, predictable pricing, and added peace of mind.

For buyers, especially first-timers, investor activity adds competition. Investors often target entry-level and median-priced homes, making cash offers and fast closings hard to beat. However, not all investor activity is bad news. Many small investors are flippers; they buy homes that need work, renovate them, and return them to the market as move-in-ready properties.

For buyers who lack time or funds for major renovations, these flipped homes can be an ideal option, effectively “financing” repairs through the purchase price.

How investors affect lifestyle and housing. Beyond pricing, lifestyle plays a role. Many buyers don’t want to take on large renovation projects. Investors can complete these repairs at lower costs and then resell homes that are ready to move in.

Although institutional investors are few nationally, the combined activity of thousands of small local investors shapes neighborhood pricing, inventory, and the pace of sales, influencing both buyers and sellers in meaningful ways.

Whether you’re buying or selling, you need a real estate professional to protect your interests and make the most of your opportunities. If you need guidance on how this shift affects you, reach out. Call at (719) 437-7311 and email us at derekandmariana@artisangroupco.com. We’d be happy to provide clear direction and support.