McKenzie (ND) Investor Pulse Report (2025-Q4)

Investors hold a significant footprint in McKenzie County, owning 1,036 single-family residential properties, which constitutes a substantial 48.2% of the total 2,150 SFRs in the market.

The investor landscape is overwhelmingly dominated by individuals, who own 998 properties, or 96.3% of the entire investor portfolio. In contrast, company-owned properties number just 43, representing a mere 4.2% share.

This individual dominance extends to the entity level, where 1,336 of the 1,377 total landlords are individuals (97.0%), while only 41 are registered as companies.

Cash is the preferred method of ownership, with 655 properties held outright compared to 381 that are financed. This suggests a market with financially liquid investors who can move without reliance on debt.

Nearly the entire investor portfolio is geared towards rental income, with 1,032 of the 1,036 properties classified as rented. This high concentration underscores the market's primary function as a source of rental housing supply.

In a striking reversal of typical market dynamics, landlords in McKenzie County consistently paid more than traditional homeowners for properties throughout 2025. In Q3 2025, landlords' average acquisition price was $430,833, a $29,576 (7.4%) premium over the homeowner average of $401,257.

This premium-paying trend was not an anomaly. Landlords also paid more in Q2 2025, with an average price of $326,608 that was $26,717 (8.9%) higher than homeowners, and in Q1 2025, where they paid a $10,733 (3.3%) premium.

The data indicates a significant price appreciation trend over the past few years. The average acquisition price during the 2020-2023 period was $291,966, which rose to $325,685 in 2024 and averaged $342,496 in 2025, signaling strong market heating.

Although price data is available, transaction volume for landlords completely ceased in the latter half of 2025, with zero properties purchased from Q4 2024 through Q3 2025. This suggests the price points reflect market valuations or listings rather than closed sales during this period.

The fourth quarter of 2025 marked a complete freeze in investor acquisition activity in McKenzie County, with landlords purchasing zero of the zero total SFRs sold. This resulted in a 0.0% market share for the quarter.

This halt in activity was universal across all investor sizes. Mom-and-pop landlords (1-10 properties), who form the backbone of the local market, made no purchases.

Similarly, mid-size and institutional investors were also inactive, with zero properties acquired in Q4 2025. This lack of transactions from any tier points to broader market conditions temporarily deterring investment.

The absence of new purchases means no new landlords entered the market in Q4, a stark contrast to previous periods of active acquisition.

This pause in buying follows a period of strong price appreciation, suggesting investors may be waiting for market conditions to shift or prices to stabilize before re-engaging.

The investor landscape in McKenzie County is unequivocally dominated by small-scale operators. Mom-and-pop landlords, defined as those owning 1-10 properties, control 99.8% of all investor-owned SFRs.

First-time or single-property landlords are the most significant force, with their 910 properties making up 86.2% of the entire investor portfolio. This highlights a market built on grassroots, individual investment rather than large-scale operations.

The next largest tiers are also small, with two-property landlords holding 87 properties (8.2%) and those with 3-5 properties holding 41 (3.9%).

There is virtually no large-scale investor presence. Only two properties in the entire county are owned by landlords with portfolios larger than 10 units.

Reflecting the hyper-local nature of the market, institutional investors with 1,000+ properties have a 0.0% market share, underscoring that this is not a target for large corporate capital.

Individual investors maintain overwhelming control across every single portfolio tier in McKenzie County, leaving almost no room for corporate ownership. In the largest tier of single-property landlords, individuals own 879 properties (96.1%) versus just 36 for companies (3.9%).

There is no crossover point where companies become the majority owners. Their presence remains minimal even as portfolio sizes increase slightly; they own just one property (6.2%) in the 6-10 unit tier.

The dominance of individuals is absolute in the small landlord tier (3-5 properties), where they own all 41 properties, representing 100.0% of the ownership in that segment.

This pattern indicates that the growth strategy in McKenzie County is driven by individuals scaling their personal portfolios, not by corporations entering the market.

The near-absence of corporate investment at any scale suggests the market's characteristics—such as housing stock, price points, or scale—are better suited to individual capital and management.

Investor ownership in McKenzie County is not evenly distributed but is highly concentrated in specific zip codes. The zip code 58854 stands out as the epicenter of activity, containing 728 investor-owned properties alone.

Following distantly are zip codes 58835 with 117 properties and 58831 with 111 properties, demonstrating a sharp drop-off in volume outside the primary hub.

When measured by market penetration, some zip codes show extraordinary levels of investor saturation. Zip code 58838 leads with an 81.2% investor ownership rate, meaning more than four out of every five SFRs are investor-owned.

High ownership rates are also found in 58835 (58.8%) and 58831 (58.7%), indicating these are key sub-markets for rental housing.

The data reveals a clear pattern of geographic targeting, where investors focus intensely on a few key areas rather than spreading their holdings widely across the county.

Historical transaction data shows that landlords in McKenzie County have been operating as strong net buyers. In the second quarter of 2025, they purchased 13 properties while selling only one, demonstrating a clear strategy of portfolio expansion.

This aggressive acquisition trend holds true over longer timeframes. Across the full year of 2025, landlords bought 31 SFRs and sold only 2, resulting in a net gain of 29 properties.

The pattern was even more pronounced in 2024, a highly active year where investors acquired 55 properties and divested only 4, for a net increase of 51 properties to their collective portfolio.

The data does not indicate any significant landlord-to-landlord trading activity, suggesting that acquisitions are primarily sourced from the traditional homeowner market.

Given the complete absence of institutional ownership, there is no corresponding transaction data for the 1,000+ property tier, confirming all market dynamics are driven by smaller investors.

The fourth quarter of 2025 was marked by a complete lack of transactions involving landlords, who accounted for 0 of the 0 total SFR transactions in McKenzie County. This brought their market share of transactions to 0.0%.

This inactivity was uniform across all investor sizes. The typically active mom-and-pop landlords (Tiers 01-04) recorded zero transactions, mirroring the lack of activity from any larger investors.

With no purchases made, the average purchase price for all tiers was effectively $0, reflecting the market-wide pause in investment acquisitions.

As a result of the transaction freeze, there was no inter-landlord trading activity. The percentage of properties bought from other landlords was 0%, as no deals were completed.

This Q4 data represents a sharp departure from the net buying activity seen in previous quarters and years, signaling a potential short-term market shift or a lag in data reporting for the period.