Weather Data Source: weather Los Angeles 30 days

News Summary

A recent report shows that 19% of homes in California are now owned by investors, with regions like Sierra County seeing rates as high as 83%. Despite California’s high-profile housing market, it ranks below the national average for investor-owned homes. With escalating home prices and mortgage rates, traditional homebuyers are increasingly at a disadvantage, making it easier for investors to expand their portfolios. The ongoing housing shortage continues to complicate the landscape, raising concerns about future affordability.


California is experiencing a significant trend of investor ownership in housing, with new data revealing that 19% of homes are owned by investors. This figure is notably higher in certain mountain regions, where such ownership can reach up to 83%, particularly in Sierra County. In contrast, coastal areas like Ventura County exhibit the lowest rate of investor ownership within the state, at just 14%.

A deeper examination of the data indicates that there are seven counties in California where more than 50% of homes are owned by investors. These counties include Sierra, Trinity, Mono, Alpine, Plumas, Modoc, and Calaveras. Major urban areas, such as Los Angeles, San Francisco, San Diego, and Orange, report lower rates of investor ownership, generally ranging between 15% and 16%.

Despite California’s high profile as a housing market, the state ranks only 36th among all states for the percentage of investor-owned homes, which is below the national average of 20%. This underlines the complex dynamics within California’s real estate market. Contributing to these trends is the ongoing acute housing shortage in the state. Over the past six years, home prices have surged by 50%, positioning California as one of the most expensive housing markets in the nation.

According to the US Chamber of Commerce, the nation faces a shortage of approximately 4.5 million homes, exacerbating the housing crisis. In the first quarter of 2025, investor-owned homes comprised 26.8% of all residential property sales in the United States, marking the highest level seen in five years. This increase illustrates a growing trend where rising homeownership costs are posing barriers for traditional homebuyers, effectively pushing more properties into the hands of investors.

The economic landscape for homebuyers has become more challenging, particularly following a significant hike in mortgage rates in 2022, which has recently doubled. The resulting decrease in buyer activity has created a more favorable environment for investors, allowing them to capture larger portions of the market. However, while investors are often credited with providing necessary liquidity to tight housing markets, there are concerns that this influx may further inflate home prices rather than promote affordability.

In states with heavy tourism, such as Hawaii and Alaska, investor-owned homes account for a larger share—40% and 35%, respectively. On the other hand, more affordable states, such as Arkansas and West Virginia, have reported around 30% of homes being investor-owned.

By sheer numbers, California ranks second in the country for the total number of investor-owned homes, with approximately 1.45 million properties falling into this category. Texas leads with 1.66 million investor-owned homes, while Florida comes in third place with about 1.21 million. Furthermore, the majority of investor-owned homes in California, about 85%, are owned by individuals or entities with only one to five properties, indicating that a substantial portion of these homes is held by small investors. An additional 5% of investor-owned homes are held by those with portfolios ranging from six to ten properties, suggesting that 90% of these homes are managed by relatively small-scale investors.

Despite the lower share of investor ownership compared to other states, California has seen a notable growth in investor portfolios, with an increase of 143,747 homes since 2020. However, returns on investment properties in the state are considered low, with price appreciation ranked No. 41 nationwide. This data suggests that while investors are active in the market, the profitability of such investments is less favorable compared to other regions, adding yet another layer of complexity to California’s housing situation.

Deeper Dive: News & Info About This Topic

WordPress Ads