News Summary
California’s real estate market is seeing a worrying trend as approximately 19% of homes are owned by investors, with specific regions like Sierra County seeing rates as high as 83%. Major urban centers show lower percentages, yet the state’s overall housing crisis persists, driven by skyrocketing prices and a national housing shortage. With a significant increase in the number of investor-owned properties, experts highlight how this trend complicates affordability for traditional homebuyers amidst rising costs.
California has seen a significant trend in real estate as new data reveals that approximately 19% of its homes are owned by investors. This trend is particularly pronounced in certain mountain regions, where the rate of investor ownership soars to 83% in Sierra County alone. In contrast, Ventura County, located on the coast, shows the lowest percentage of investor-owned homes at just 14%.
Research conducted by BatchData and reported by various analysts indicates an alarming rise in the share of homes owned by investors across California. Notably, seven counties—Sierra, Trinity, Mono, Alpine, Plumas, Modoc, and Calaveras—report over 50% of their residential properties being investor-owned. Major urban centers such as Los Angeles, San Francisco, San Diego, and Orange possess lower rates, varying from 15% to 16% for investor ownership.
Despite representing a smaller percentage compared to many other states, where the national average for investor-owned homes hovers around 20%, California ranks 36th among all states in this regard. However, the state grapples with a profound housing crisis, as home prices have spiked by 50% over the past six years, contributing to its status as having some of the highest housing costs in the nation.
The US Chamber of Commerce has reported a national shortage of about 4.5 million homes, exacerbating the existing housing challenges in California. In the first quarter of 2025, investor-owned homes represented 26.8% of all residential property sales across the country, the highest level observed in five years. This surge is largely attributed to soaring homeownership costs that increasingly pose barriers for traditional homebuyers, simultaneously pushing more properties into the hands of investors.
A notable shift in mortgage rates, which doubled in 2022, has also contributed to a decline in homebuyer activity. As a result, this decrease in competition has allowed investors to capture a larger slice of the housing market. While investors can provide crucial liquidity in tight housing markets, their influence may drive prices higher, undermining efforts to enhance affordability.
Experts argue that even though investors support the housing market by injecting billions of dollars, their activities do not necessarily alleviate affordability issues. In fact, many states with significant tourist traffic, such as Hawaii and Alaska, report higher percentages of investor-owned homes at 40% and 35%, respectively, while more affordable regions like Arkansas and West Virginia stand at 30%.
When looking at investor ownership by volume, California holds the second-highest number of such properties in the nation, with around 1.45 million investor-owned homes. Texas leads this ranking with 1.66 million, followed closely by Florida with about 1.21 million homes owned by investors. A staggering 85% of these investor-owned homes belong to individuals or entities holding from one to five properties. Interestingly, 5% own between six and ten, suggesting that a substantial portion—90%%—is controlled by small investors.
Since 2020, the number of investor-owned homes in California has increased by 143,747. However, the overall returns on investment properties have not been compelling; price appreciation ranks California 41st in the nation. These factors paint a complex picture of the real estate scenario in California, where high costs and investor interest intertwine, significantly impacting the housing landscape.
Deeper Dive: News & Info About This Topic
- The Guardian: California Investor-Owned Homes
- Wikipedia: Real Estate in the United States
- Patch: Investors Own Most Houses in These CA Counties
- Google Search: California Real Estate Investors
- SFGate: Investors Make Up Majority of Homes in Some California Counties
- Encyclopedia Britannica: Real Estate
- Orange County Register: 19% of California Houses Are Owned by Investors
- Google News: California Housing Crisis Investors
Author: STAFF HERE CORONADO
The Coronado Staff Writer represents the experienced team at HERECoronado.com, your go-to source for actionable local news and information in Coronado, San Diego County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Coronado Island Film Festival, productions at Lamb’s Players Theatre, community workshops at John D. Spreckels Center, and iconic celebrations at Hotel del Coronado. Our coverage extends to key organizations like the Coronado Chamber of Commerce and Visit Coronado, plus leading businesses in hospitality, dining, and tourism that drive the local economy. As part of the broader HERE network, including HERESanDiego.com, HEREHuntingtonBeach.com, HERELongBeach.com, and HERELosAngeles.com, we provide comprehensive, credible insights into Southern California's dynamic landscape.
