"Basic economics tells you that if you lower the demand for a product, the price should fall. Limiting financial incentives for housing investors could increase the share of homes owned by the folks who live there. Consider a new study from the American Enterprise Institute. It notes that favorable financing available to small-scale house investors nationwide may provide 10% more buying power than traditional mortgages offered to the general public."
"Yes, it's not Wall Street giants gobbling up a wannabe homeowner's shot at the American dream. Investors of all sizes create competition for California house hunters, particularly in the state's more affordable communities. That's what my trusty spreadsheet found after reviewing a BatchData report from the third quarter of 2025 that calculates investor ownership of houses and townhomes nationwide. Investors in this study include everything from giant companies controlling thousands of houses to folks with a small collection of rentals"
Favorable financing available to small-scale house investors nationwide may provide about 10% more buying power than traditional mortgages offered to the general public. Federal mortgage finance policy can effectively subsidize small-scale investors competing for the same starter homes sought by first-time buyers, because government-backed credit lowers investors' cost of capital and strengthens their ability to outbid first-time borrowers. Investors of all sizes own approximately 1.28 million houses in California, about 17% of the state's supply, excluding condos. Investor ownership is concentrated in the state's less expensive counties, increasing competition where budget-strapped homebuyers seek homes.
Read at www.ocregister.com
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