BatchData reports 15.9 million investment homes as DSCR loan activity rises

Approximately 15.9 million homes, representing 18% of the U.S. market, were classified as investment properties owned by individuals or corporations at the end of the second quarter, according to a report from real estate data provider BatchData published by National Mortgage News. The total reflects a housing market where property ownership by non-occupant entities remains a significant structural component, even as transaction dynamics shift across regional markets.

While total investor inventory remains concentrated in major population centers across the Sun Belt, several smaller states with tourism-driven economies maintain the highest proportional concentrations of investor-owned residential housing. Lenders and capital providers are examining these geographic distribution patterns as demand grows for debt-service-coverage-ratio mortgages and other non-qualified financing options designed specifically for non-owner-occupied properties.

What the data shows

The geographic concentration of investment real estate varies widely across individual states, according to figures released by BatchData. Maine led the nation at the end of the second quarter, with 30.9% of residential units classified as investment real estate. Wyoming ranked second with 30.6% of its residential properties under investor ownership.

Three additional states recorded investor property shares above a quarter of their overall residential supply: Alaska recorded 26.7%, Montana held 26.6%, and Hawaii registered 25.6%. BatchData researchers noted that these five states share common economic characteristics linked to seasonal travel patterns and vacation accommodations.

All of these states depend heavily on tourism, so it's likely that many of the investor-owned homes are vacation homes and short-term rental properties, researchers at BatchData wrote in its second-quarter pulse report.

Beyond the top five, three other visitor-heavy markets recorded investor shares above 24%: North Carolina, Nevada, and Arizona. In contrast, when measured by absolute volume rather than share of housing stock, the largest concentrations of investor properties are located in heavily populated Sun Belt states. Texas leads the nation in total investor-owned residential units with 1.4 million properties, followed by California at just under 1.2 million properties, and Florida at 1.1 million investor properties.

How it was measured

The figures were published by technology reporter Spencer Lee in National Mortgage News on October 16, 2026, based on second-quarter property records compiled by BatchData. BatchData evaluated public records and market files to identify single-family homes, condominiums, and multi-unit residential structures held by individual investors or corporate legal entities rather than owner-occupants.

Transaction volume metrics in the report compare second-quarter purchase records against previous quarter performance and corresponding historical periods. Supplemental mortgage industry statistics were drawn from Optimal Blue, which tracks rate lock activity and product distribution across conventional and non-qualified mortgage channels nationwide.

Quarterly transaction trends and market share

In total transaction activity, residential property purchases by investors retreated when compared against the prior year. Investors purchased 284,068 homes during the second quarter, representing a 22% drop from the 366,027 homes purchased by investors during the second quarter of the previous year.

On a sequential quarterly basis, transaction counts showed a modest expansion. Investor home purchases rose from approximately 277,394 recorded three months earlier in the first quarter. Despite that quarter-to-quarter increase in total unit purchases, the overall market share claimed by investor buyers contracted during the three-month period.

While investor home purchases increased during the second quarter, they didn't keep pace with the much larger increase in overall home sales during April, May and June, said BatchData President Ivo Draginov.

Because traditional homebuyer activity expanded at a faster pace during April, May, and June, investor purchases accounted for 26.7% of all sales transactions during the second quarter. BatchData reported that this 26.7% figure represents the smallest slice of sales activity for investors in five quarters, matching market patterns dating back to early 2025. However, BatchData noted that the current investor market share figure remains higher than percentages recorded two years ago.

Financing mechanics and non-QM mortgages

The persistence of investor activity despite elevated borrowing costs has fueled expansion in non-qualified mortgage products. With residential mortgage rates reaching their highest points in years, mortgage industry professionals have focused on debt-service-coverage-ratio financing as a growing category within the non-QM sector.

DSCR loans assess borrowing eligibility based primarily on the rental revenue generated by the subject property rather than the personal tax returns or employment documentation of the borrower. Data from Optimal Blue shows that DSCR loans accounted for one-third of all non-QM rate locks last month.

Optimal Blue also reported that overall non-QM lock volume grew 8% between August and September. Additionally, mortgage securitizations within the non-QM asset class have surpassed previous records for the year. This capital market momentum occurs as conventional purchase and refinance transactions pull back amid broader interest rate pressures, with industry projections pointing toward a noticeable rise in non-QM activity in 2026.

What to watch

As financing models adjust to shifting property market conditions, hosts, asset managers, and yield investors should monitor several key metrics in official records and lending performance updates.

• Track local municipality registration registries in high-concentration states such as Maine, Wyoming, and Alaska to verify how many investor-owned housing units are licensed for short-term occupancy.
• Monitor monthly Optimal Blue non-QM lock volume updates to gauge whether DSCR origination momentum continues to expand relative to conventional residential mortgage volume.
• Evaluate state-level property transfer figures in Texas, California, and Florida to track absolute unit volume movements across the largest Sun Belt investment markets.
• Watch secondary mortgage market securitization disclosures to assess liquidity conditions and pricing spreads for non-QM loan pools through 2026.