Scotland (NC) Investor Pulse Report (2025-Q4)

Investors hold a significant footprint in Scotland County, owning 2,272 single-family residential properties, which constitutes 31.5% of the total 7,206 SFRs in the market.

The ownership structure is dominated by private individuals rather than corporations. Individual investors own 1,789 properties, accounting for 78.7% of the investor-held portfolio, compared to 521 properties (22.9%) owned by companies.

This individual dominance is also reflected in the entity count, where 1,939 of the 2,196 total landlords (88.3%) are individuals, reinforcing the 'mom-and-pop' nature of the local rental market.

A defining characteristic of the investor portfolio is a low-leverage, high-equity approach. A commanding 85.5% of properties (1,942) are owned with cash, while only 330 properties (14.5%) are financed.

The portfolio is almost entirely dedicated to rental purposes, with 2,230 of the 2,272 properties (98.1%) being non-owner-occupied, signaling a clear focus on providing housing for the rental market.

Investors demonstrated a remarkable ability to acquire properties at a deep discount in Q4 2025, paying an average price of just $83,782. This was 62.4% less than the $222,866 paid by traditional homeowners, a staggering price gap of $139,084 per home.

The price advantage for landlords has widened dramatically throughout the year. The 62.4% discount in Q4 is a sharp increase from the 34.0% discount observed in Q3 and the 45.4% discount in Q2, suggesting investors are effectively targeting distressed or undervalued assets.

While homeowner prices have remained relatively stable, landlord acquisition prices have been more volatile, falling from a high of $147,580 in Q2 to the Q4 low of $83,782. This may reflect a strategic shift toward lower-cost properties.

Recent acquisition prices are also below historical averages from the 2020-2023 period, where the average landlord purchase price was $97,238. This indicates that current buying activity is focused on the lower end of the market spectrum.

Investors were a primary driver of market activity in Q4 2025, purchasing 24 of the 62 total SFRs sold, capturing a substantial 38.7% market share.

The acquisition activity was overwhelmingly led by small-scale investors. Mom-and-pop landlords (1-10 properties) were responsible for 21 of the 24 investor purchases, representing 87.5% of the total and underscoring their role as the main source of new rental inventory.

The market continues to attract new participants, with 12 new single-property landlords entering the market in Q4. This group alone purchased 10 homes, accounting for 41.7% of all investor-bought properties for the quarter.

In stark contrast, large-scale institutional investors (1,000+ properties) had a negligible impact on the market, acquiring just a single property. This highlights a market dynamic dominated by local, small-scale capital rather than national corporations.

Mid-size investors (11-20 properties) also participated, with two entities purchasing two properties, making up 8.3% of landlord acquisitions for the quarter.

The investor ownership landscape in Scotland County is unequivocally dominated by small-scale landlords. Those owning 1-10 properties (Tiers 01-04) collectively control 88.1% of all investor-owned single-family homes.

Single-property landlords form the bedrock of the rental market, with 1,424 properties under their ownership. This single tier accounts for 61.4% of the entire investor portfolio, showcasing the highly fragmented nature of rental ownership.

Contrary to common narratives about corporate landlords, institutional ownership (1,000+ properties) is virtually non-existent in this market. This tier holds just 4 properties, representing a scant 0.2% of the total investor-owned housing stock.

The ownership distribution forms a steep pyramid, with the number of properties rapidly decreasing as portfolio sizes increase. Landlords with 11-100 properties (Tiers 05-07) collectively own 11.2%, filling the gap between small operators and large institutions.

The data clearly shows that the provision of single-family rental housing in Scotland County is driven by local, small-portfolio investors, not large, out-of-state corporations.

A clear pattern of professionalization emerges as portfolio sizes grow, with a distinct crossover point from individual to corporate ownership. While individuals dominate smaller portfolios, companies assume a commanding 98.6% majority ownership in the 21-50 property tier.

In the smallest tiers, individual ownership is overwhelming. Individuals own 89.0% of single-property portfolios (1,290 properties) and 81.2% of two-property portfolios (147 properties).

The 6-10 property tier represents a key transition phase. It has the most balanced structure, with individuals holding a slim majority at 54.3% (82 properties) versus companies at 45.7% (69 properties). This is likely the stage where successful investors begin to incorporate.

Corporate structures are utilized from the very beginning by a subset of investors. Companies own 160 single-property homes, accounting for 11.0% of that tier, suggesting a deliberate strategy for liability protection and growth from the outset.

The data illustrates that scaling a rental portfolio beyond 20 properties in Scotland County is almost exclusively a corporate endeavor, signaling a shift from a personal investment to a formal business operation.

Investor activity in Scotland County is highly concentrated geographically. The 28352 zip code is the clear hub for volume, containing 1,769 investor-owned properties, which alone accounts for 77.9% of the entire investor portfolio in the county.

While 28352 leads in raw numbers, the highest rate of investor penetration occurs in the 28343 zip code, where investors own 43.4% of the single-family housing stock. This indicates that nearly one in every two homes in that area is a rental property.

A key finding is the divergence between the leaders in volume and the leaders in ownership rate. The area with the most investor properties (28352) has an ownership rate of 30.6%, which is lower than four other zip codes, suggesting different investment strategies are at play across the county.

Several areas show deep investor saturation. The zip codes of 28343 (43.4%), 28351 (37.6%), and 28396 (34.5%) all have investor ownership rates over one-third, signaling these markets are heavily defined by rental housing.

Conversely, the 28364 zip code shows the least investor activity among the top areas, with only 10 properties and a 12.5% ownership rate, potentially highlighting an area with less rental demand or an opportunity for future investment.

Investors in Scotland County are in a clear accumulation phase, acting as strong net buyers. In Q4 2025, they purchased 30 properties while selling only 7, a buy-to-sell ratio of 4.29 to 1.

This aggressive buying posture is not new; it reflects a year-long trend. For all of 2025, landlords acquired 131 SFRs and sold just 47, resulting in a net addition of 84 properties to the county's investor-owned housing stock.

The pace of acquisitions in 2025 is on par with the previous year, which saw a net gain of 86 properties (116 buys vs. 30 sells), indicating sustained and steady demand from investors.

Even the minimally active institutional tier (1,000+ properties) is in growth mode. For the year, they were net buyers, acquiring 4 properties and selling 3, for a net gain of one property.

Quarterly transaction data shows consistent buying throughout 2025, with Q4's 30 purchases following 40 in Q3 and 33 in Q2, signaling a stable and confident investor market.

Landlord acquisitions accounted for a significant portion of the Q4 2025 market, representing 30 of the 86 total transactions, for a 34.9% share of all single-family home sales in Scotland County.

The data reveals a clear pricing advantage for larger, more experienced buyers. The institutional investor in Q4 paid an average of $110,888, which is 17.4% less than the $134,300 average paid by new, single-property landlords.

Transaction volume was driven by the smallest investors. Mom-and-pop landlords (Tiers 01-04) were responsible for 27 of the 30 investor purchases (90.0%), confirming that market activity is concentrated at the grassroots level.

Investors are sourcing properties almost exclusively from the open market rather than from each other. Out of 30 acquisitions, only one (from the 6-10 property tier) was recorded as a purchase from another landlord, indicating a very low level of churn within the existing investor pool.

Purchase prices varied significantly across tiers, with new entrants paying the most ($134,300) and mid-size landlords (6-10 properties) paying the least ($52,250), suggesting different target assets, from turn-key to value-add, for different investor types.