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A fifth of California homes are investor-owned as state’s affordability crisis deepens – report A fifth of California homes are investor-owned as state’s affordability crisis deepens – report
(about 13 hours later)
New figures show that the Golden state’s rate of investor-owned homes is 19%, with mountain regions up to 83%New figures show that the Golden state’s rate of investor-owned homes is 19%, with mountain regions up to 83%
One in five homes in California is owned by investors, new data reveals, in the latest sign of an affordability crisis that shows no end in sight.One in five homes in California is owned by investors, new data reveals, in the latest sign of an affordability crisis that shows no end in sight.
The figures, which come from the data tracker BatchData and were analyzed by the Orange County Register, show that California’s overall percentage of investor home ownership sits at 19%.The figures, which come from the data tracker BatchData and were analyzed by the Orange County Register, show that California’s overall percentage of investor home ownership sits at 19%.
The rate is higher in the state’s mountain regions such as Sierra county, which has an 83% share of its homes owned by investors, compared with coastal Ventura county, at just 14%. In seven California counties – Sierra, Trinity, Mono, Alpine, Plumas, Modoc and Calaveras – investors owned more than 50% of homes.The rate is higher in the state’s mountain regions such as Sierra county, which has an 83% share of its homes owned by investors, compared with coastal Ventura county, at just 14%. In seven California counties – Sierra, Trinity, Mono, Alpine, Plumas, Modoc and Calaveras – investors owned more than 50% of homes.
California’s most urban counties, featuring some of its most prized and expensive real estate, had lower shares of investor-owned homes, with Los Angeles county at 15% and San Francisco, San Diego and Orange counties at 16%.California’s most urban counties, featuring some of its most prized and expensive real estate, had lower shares of investor-owned homes, with Los Angeles county at 15% and San Francisco, San Diego and Orange counties at 16%.
While the trend is not unique to California – the state ranks 36th in the country, and just a shade under the 20% national average – it comes as the state is experiencing an acute housing shortage. Home prices in the Golden state are among the most expensive in the nation, and have jumped 50% in the past six years. The US Chamber of Commerce estimates that the US is short roughly 4.5m homes.While the trend is not unique to California – the state ranks 36th in the country, and just a shade under the 20% national average – it comes as the state is experiencing an acute housing shortage. Home prices in the Golden state are among the most expensive in the nation, and have jumped 50% in the past six years. The US Chamber of Commerce estimates that the US is short roughly 4.5m homes.
The share of investor-owned homes is rising as well, accounting for 26.8% of all national residential property sales in the first quarter of 2025. While this indicated the highest percentage in five years, BatchData attributed the number less to increasing investor activity, and more to rising costs of home ownership serving as a barrier for homebuyers. The doubling of mortgage rates in 2022 significantly cut homebuyer purchases, thus increasing investors’ share.The share of investor-owned homes is rising as well, accounting for 26.8% of all national residential property sales in the first quarter of 2025. While this indicated the highest percentage in five years, BatchData attributed the number less to increasing investor activity, and more to rising costs of home ownership serving as a barrier for homebuyers. The doubling of mortgage rates in 2022 significantly cut homebuyer purchases, thus increasing investors’ share.
The report, which did not define what qualifies as an “investor”, saw the sector filling a crucial role in tight markets.The report, which did not define what qualifies as an “investor”, saw the sector filling a crucial role in tight markets.
“With traditional buyers sidelined by affordability constraints, investors are providing essential marked liquidity while targeting distinct property segments and geographic markets,” the report said.“With traditional buyers sidelined by affordability constraints, investors are providing essential marked liquidity while targeting distinct property segments and geographic markets,” the report said.
Omar Ocampo, a researcher at the Institute for Policy Studies and co-author of Billionaire Blowback on Housing, says the “mega investors and small investors” want to “make as much money as possible”. Ocampo is not sold that this helps make housing affordable.Omar Ocampo, a researcher at the Institute for Policy Studies and co-author of Billionaire Blowback on Housing, says the “mega investors and small investors” want to “make as much money as possible”. Ocampo is not sold that this helps make housing affordable.
“They bring liquidity into the market because they’re pouring billions of dollars of cash into real estate, but that is not putting downward pressure on prices,” he said. “We would argue that’s putting upward pressure on prices.”“They bring liquidity into the market because they’re pouring billions of dollars of cash into real estate, but that is not putting downward pressure on prices,” he said. “We would argue that’s putting upward pressure on prices.”
Ocampo acknowledged a shortage of housing, but said that, given investment patterns, an affordability solution would take more than just building new units.Ocampo acknowledged a shortage of housing, but said that, given investment patterns, an affordability solution would take more than just building new units.
“What happens if you build more housing, and institutional investors are buying up 20% of the new stock?” Ocampo said. “It’s like a never-ending cycle.”“What happens if you build more housing, and institutional investors are buying up 20% of the new stock?” Ocampo said. “It’s like a never-ending cycle.”
Tourist-heavy states Hawaii and Alaska clocked in with the highest share of investor-owned homes with 40% and 35%, respectively. Affordable states such as Arkansas (30%) and West Virginia (30%) also ranked highly.Tourist-heavy states Hawaii and Alaska clocked in with the highest share of investor-owned homes with 40% and 35%, respectively. Affordable states such as Arkansas (30%) and West Virginia (30%) also ranked highly.
By quantity, California had the second highest number of investor-owned homes in the country (1.45m) after Texas (1.66m), with Florida clinching the bronze medal at 1.21m.By quantity, California had the second highest number of investor-owned homes in the country (1.45m) after Texas (1.66m), with Florida clinching the bronze medal at 1.21m.
Investors owing between one and five properties account for 85% of investor-owned homes, and those owning between six and 10 properties account for another 5%, bringing the total share of small investor-owned homes to about 90%.Investors owing between one and five properties account for 85% of investor-owned homes, and those owning between six and 10 properties account for another 5%, bringing the total share of small investor-owned homes to about 90%.
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