Union (SD) Investor Pulse Report (2026-Q1)

In Union County, investors hold 428 single-family residential properties, accounting for 9.6% of the total 4,449 SFRs. This portfolio is overwhelmingly controlled by individual investors rather than corporations, challenging common narratives about large-scale ownership.

Individual landlords own 409 properties, a commanding 95.6% share, while companies own the remaining 29 properties (6.8%). This pattern extends to the entity level, where 589 of the 620 landlords (95.0%) are individuals.

A significant majority of these investment properties, 417 in total, are classified as rented, confirming their use as housing supply for the rental market. This high rental rate underscores the primary strategy of investors in the area.

Financial analysis of these holdings reveals a preference for low-leverage positions. Investors own 345 properties with cash, more than four times the 83 properties that are financed. This suggests a stable, risk-averse investor base that is less susceptible to interest rate fluctuations.

The composition of the investor landscape in Union County is clearly defined by small-scale, individual participation, with corporate entities playing a minimal role in the local real estate investing scene.

Acquisition pricing in Union County shows significant volatility, a direct result of extremely low transaction volumes in recent quarters. Landlord purchase prices have fluctuated dramatically, making trend analysis challenging.

In Q1 2025, the data indicates landlords paid a premium, with an average acquisition price of $361,500 compared to the traditional homeowner average of $315,699. This represents a 14.5% premium, or $45,801 more per property.

However, this trend reversed sharply in Q3 2025, where the average landlord purchase price plummeted to $100,000. This was 74.0% less than the homeowner average of $385,321, a staggering discount of $285,321.

This extreme price swing between quarters with minimal transactions underscores the unreliability of using this data to establish a consistent landlord discount or premium. It suggests that the few properties traded were likely outliers with unique characteristics.

Looking at a broader period, the average acquisition price during the 2020-2023 boom was $190,927, indicating that recent transactions, despite their volatility, are occurring at higher price points than those seen during the pandemic-era housing market.

The fourth quarter of 2025 marked a period of complete inactivity for real estate investors in Union County. Landlords acquired zero of the two single-family homes sold during this period, resulting in a 0% market share.

This halt in purchasing was consistent across all investor sizes. Mom-and-pop landlords, who form the backbone of the local market, made no acquisitions, accounting for 0.0% of landlord purchases.

Similarly, institutional investors, who already have no significant presence in the county, also recorded zero purchases. This lack of activity from any investor tier points to a broader market freeze rather than a strategic shift by a single segment.

The absence of new acquisitions means there were no new landlords entering the market via single-property purchases in Q4. This stagnation contrasts with historical activity and signals a potential shift in local market dynamics, possibly driven by economic conditions or a lack of desirable inventory.

Overall, the Q4 data paints a clear picture of a dormant investor market, with capital seemingly sitting on the sidelines.

The ownership structure in Union County is unequivocally dominated by small-scale investors. Mom-and-pop landlords, defined as those owning 1-10 properties, control a staggering 99.1% of the entire investor-owned SFR portfolio.

This concentration is most pronounced in the smallest tier. Landlords with a single property (Tier 01) own 408 homes, which represents 94.9% of all investor-owned properties. This highlights that the market is primarily composed of individuals with one rental home.

Mid-size landlords are a rarity, with the 11-20 property tier holding just 3 properties (0.7%) and the 101-1000 tier holding only one property (0.2%).

In stark contrast to national headlines, institutional investors (Tier 09, 1000+ properties) have absolutely no footprint in Union County, with a 0.0% market share. This market operates entirely without the influence of large-scale corporate landlords.

The data from assessor data confirms a highly fragmented and localized ownership landscape, where the typical investor is a local resident with a very small portfolio.

A breakdown of ownership by entity type reveals that individual investors maintain majority control across all portfolio sizes in Union County. Unlike larger metropolitan markets, there is no tier where corporate ownership becomes the norm.

In the largest tier by property count, single-property owners, individuals hold 393 of the properties, a 94.0% share, compared to just 25 properties held by companies.

This pattern continues even as portfolio sizes increase slightly. Among landlords owning 3-5 properties, individuals control 8 of the 9 homes (88.9%).

The data shows a complete absence of a 'crossover point' where companies surpass individuals in ownership. The local investment scene is fundamentally driven by personal capital, not corporate strategy.

This structure suggests that the market is more influenced by the financial decisions of local individuals rather than the broader portfolio strategies of regional or national companies.

Geographic analysis of investor holdings in Union County reveals a significant concentration of activity in specific areas. Two zip codes stand out as the primary hubs for rental properties.

The zip code 57025 contains the highest absolute number of investor-owned homes, with 183 properties. This is followed by 57001, which has 92 properties. Together, these two areas contain 275 of the 428 total investor properties, representing 64.2% of the county's entire investor portfolio.

When analyzing ownership rates, these same zip codes lead the county. The 57001 zip code has the highest penetration, with 22.3% of its SFRs owned by investors. The 57025 zip code is a close second, with a 21.6% investor ownership rate.

Other areas with notable investor presence include 57034, where investors own 16.7% of homes, and 57038, with an 11.9% rate. This contrasts sharply with areas like 57049, which has a large housing stock but a low investor ownership rate of only 2.7%.

This data indicates that investor acquisition strategies are not uniform across the county but are instead targeted at specific communities, likely driven by factors such as rental demand, property values, and local regulations.

Historical transaction data from 2024 shows that landlords in Union County were actively expanding their portfolios. During the year, they collectively purchased 18 single-family homes while selling only 8.

This activity resulted in a net gain of 10 properties, establishing landlords as clear net buyers for that period. The buy-to-sell ratio was 2.25, meaning investors were acquiring properties at more than double the rate they were divesting them.

This trend from 2024 provides a crucial baseline, highlighting that the recent halt in purchasing activity in 2025 is a significant departure from prior behavior. The market has shifted from net accumulation to a standstill.

As there are no institutional investors (1000+ properties) operating in the county, all transaction activity is attributable to small and mid-sized landlords. Their collective sentiment in 2024 was positive, though it appears to have since cooled dramatically.

The first quarter of 2026 continued the trend of investor inactivity seen in late 2025. Landlords were not party to any of the 3 SFR transactions that occurred in Union County, giving them a 0% share of market activity.

This inactivity was universal across all investor sizes. Mom-and-pop landlords (Tiers 01-04), who own 99.1% of the rental stock, did not record a single purchase or sale.

No inter-landlord trading was observed, as there were no transactions to analyze. This indicates a lack of portfolio repositioning or churning among existing owners.

The average purchase price for all tiers was $0, reflecting the complete absence of acquisitions. This lack of new pricing data makes it impossible to assess current valuation trends from an investor perspective.

The Q1 data confirms that the investor market in Union County remains dormant, with capital not being deployed into new acquisitions as the year begins.