U.S. Real Estate Market Sees 40.1% of Sales Close Off-Market, Totaling 3.7 Million Transactions
A substantial portion of the U.S. housing market operates outside the publicly visible Multiple Listing Service (MLS), with 40.1% of all home sales closing as off-market transactions. This represents a massive 3,712,525 properties sold directly between parties, through investor channels, or via other private arrangements in September 2026. These transactions, often hidden from the average homebuyer, highlight a vast and active parallel market that is critical for real estate investors and industry professionals to understand.
Executive Summary: The Two-Sided Real Estate Market
The American real estate market is effectively split into two distinct channels: the publicly listed on-market world and the private, often relationship-driven off-market sphere. According to BatchData's latest on-market vs off-market sold report, of the 9,257,565 total home sales analyzed, a majority of 5,545,040 transactions (59.9%) were traditional on-market sales conducted via the MLS. However, the remaining 3,712,525 sales occurred off-market, underscoring the immense scale of deal flow that never appears on public listing portals.
This 59.9% to 40.1% split reveals that for every three homes sold through a real estate agent on the open market, two are sold privately. This dynamic has profound implications for real estate investing, as it confirms that a significant volume of inventory is only accessible through direct-to-seller marketing, networking, and sophisticated property search strategies. The data shows that investors who limit their search to the MLS are potentially missing out on two-fifths of all transactions.
Geographically, transaction volume is heavily concentrated in a few key states. Texas leads the nation with 1,001,840 total sales, accounting for 10.8% of all transactions. It is followed by Florida with 891,592 sales (9.6%) and California with 607,659 sales (6.6%). This concentration is also evident at the county level, with major metropolitan hubs like Maricopa County, AZ (137,599 sales) and Harris County, TX (119,460 sales) serving as the epicenters of both on-market and off-market activity. Understanding this distribution is essential for investors, agents, and proptech platforms aiming to capture market share and identify opportunities.
Key Trends in On-Market vs. Off-Market Sales
The national split between on-market and off-market sales provides a high-level view, but a deeper analysis of the underlying numbers and geographic distributions reveals critical trends shaping deal flow and investment strategy across the country. The sheer volume of off-market activity confirms it as a mainstream component of the housing market, not a niche exception.
The Scale of the Off-Market Universe
The existence of 3,712,525 off-market sales is the single most important finding for investors and wholesalers. This figure represents a vibrant ecosystem of transactions happening away from public view. These sales often involve motivated sellers who prioritize speed, certainty, or privacy over the potential for a bidding war on the open market. This category includes a wide range of deal types, from homes sold to iBuyers and institutional investors to properties passed between family members or sold by small landlords directly to other investors.
For professionals in the industry, this off-market segment is where competitive advantages are built. Sourcing these deals requires proactive strategies like identifying distressed properties, leveraging detailed assessor data to find specific owner profiles, and using tools like skip tracing to make direct contact. The 3.7 million transactions represent opportunities that are inaccessible to those who rely solely on publicly available listings. This segment is particularly crucial for fix-and-flip investors and landlords looking to acquire properties at a discount, as these deals often involve less competition than their on-market counterparts. The scale of this market suggests that any comprehensive investment strategy must include a dedicated off-market acquisition funnel.
On-Market Sales Remain the Primary Channel
While the off-market sector is massive, traditional on-market sales still constitute the majority of transactions, with 5,545,040 closings, or 59.9% of the total. The MLS remains the dominant platform for residential real estate, offering sellers the broadest possible exposure to potential buyers and the expertise of licensed real estate agents. This channel is characterized by professional marketing, standardized procedures, and the price discovery that comes with open competition.
The 5.5 million on-market sales represent the bedrock of the housing market that is most visible to the public and tracked by mainstream economic indicators. For real estate agents, this remains their core business, and for many homebuyers, it is the only channel they will ever interact with. The persistence of this majority share highlights the value that sellers place on broad market access and professional representation. However, for investors, the on-market space is often more competitive and less likely to yield the deep discounts available in the off-market world. The 59.9% figure serves as a benchmark, illustrating that while the traditional path to selling a home is still the most common, it is far from the only one.
Geographic Concentration in High-Volume States
The distribution of real estate transactions is far from even, with a handful of large states dominating the national landscape. Texas stands at the forefront with 1,001,840 sales, making up a significant 10.8% of the U.S. total. The state's booming metropolitan areas, business-friendly environment, and strong population growth fuel a high velocity of transactions in both on- and off-market channels. Following closely is Florida, another high-growth state, with 891,592 sales, or 9.6% of the national total. Its appeal to retirees, domestic migrants, and international buyers creates a consistently active and diverse market.
California, despite its reputation for high costs and complex regulations, ranks third with 607,659 sales (6.6%). Its massive economy and population ensure it remains a major center of real estate activity. Together, these top three states represent over a quarter of all home sales in the country. Rounding out the top five are Georgia, with 382,644 sales (4.1%), and North Carolina, with 371,354 sales (4.0%), both of which have become major economic hubs in the Southeast. This concentration means that national trends are heavily influenced by the market dynamics within these five states. For large-scale investors and data providers, a deep presence in these markets is not just advantageous but essential for capturing a meaningful share of deal flow.
A Regional Breakdown of Transaction Channels
An examination of sales data across the four major U.S. regions reveals distinct patterns of market activity. The South's dominance is clear, while major metropolitan centers in the Midwest, West, and Northeast drive volume in their respective regions. This geographic analysis helps investors and businesses tailor their strategies to the specific characteristics of each market.
The South: The Undisputed Engine of U.S. Real Estate
The Southern region is the nation's clear leader in real estate transaction volume. Led by the powerhouse states of Texas (1,001,840 sales) and Florida (891,592 sales), the region is a hotbed of activity. Other major contributors from the South include Georgia with 382,644 sales, North Carolina with 371,354 sales, and Tennessee with 245,172 sales. Even states with smaller populations post significant numbers, such as Virginia with 225,150 sales and South Carolina with 198,586 transactions. The combination of rapid population growth, corporate relocations, and relatively affordable housing markets fuels this high velocity of sales. This environment creates fertile ground for both on-market sales driven by new residents and a robust off-market ecosystem catering to investors looking to capitalize on rental demand and appreciation. The sheer volume makes the South a primary target for any national-scale real estate operation.
The West: A Market of Superstars and Steady Performers
In the West, California's 607,659 sales establish it as the regional anchor. However, the story extends beyond the Golden State. Arizona is a major force, with 254,355 sales, a figure driven largely by a single county. Maricopa County (Phoenix) is the top county in the entire nation for sales, recording an immense 137,599 transactions on its own. This highlights how a single, sprawling metropolitan area can define a state's real estate market. The state of Washington contributes 189,797 sales, and Colorado adds another 190,218. Further demonstrating the power of major metros, Clark County, Nevada (Las Vegas) ranks as the fifth-busiest county in the U.S. with 70,505 sales, propelling Nevada's statewide total to 104,005. At the other end of the spectrum, less populated states like Wyoming (23,061 sales) and Alaska (23,133 sales) show much more modest activity, illustrating the vast differences in market scale across the region.
The Midwest: Consistent Volume from America's Heartland
The Midwest is characterized by large, stable markets that consistently generate high transaction volumes. Ohio leads the region with 342,249 sales, followed closely by Illinois with 325,539. The activity in Illinois is heavily concentrated in Cook County (Chicago), which ranks third nationally with 113,562 sales. This pattern of a primary metropolitan core driving statewide numbers is a recurring theme. Other key states in the region include Michigan with 258,346 sales and Indiana with 238,514 sales. Wisconsin (154,040 sales) and Minnesota (165,459 sales) also make substantial contributions. These markets are often favored by investors for their affordability and stable rental yields, creating a healthy environment for both on-market and off-market acquisitions. While perhaps not as flashy as some coastal markets, the Midwest's consistency makes it a reliable and significant component of the national housing landscape.
The Northeast: Established Markets with Concentrated Activity
The Northeast is home to some of the nation's oldest and most densely populated housing markets. Pennsylvania is the regional leader in transaction volume with 317,737 sales, followed by New York with 304,468 sales. These states contain a mix of major urban centers and sprawling suburban and rural areas, each with its own market dynamics. New Jersey contributes 191,996 sales, while Massachusetts records 125,827 transactions. The volume drops off in the smaller New England states, such as Connecticut with 70,883 sales. At the lower end of the scale, states like New Hampshire (29,296 sales), Rhode Island (21,004 sales), and Vermont (19,427 sales) have much smaller footprints in the national market. The high property values and regulatory complexity in many parts of the Northeast can influence the types of transactions that occur, often creating unique opportunities for savvy investors who can navigate these challenges. The stark contrast between a state like Pennsylvania and its smaller neighbors underscores the diverse nature of real estate activity even within a single region.