"In 2025's first half, 36% of purchases statewide were made by investors - up from 31% for all of 2024 and 16% at the recent low in 2020 as coronavirus was scrambling the economy. Or look at the change this way: Investors were tied to an average of 33% of all California homebuying in the past 18 months vs. 21% in 2015-23."
"The sharp jump in investor activity is likely due to their financial strength, which can often combat the state's legendary low affordability that frustrates the common house hunter. Overall, California's homebuying has collapsed. Over the past three years, sales have followed a pace similar to that of the 2008 crash, when the global economy plunged into the Great Recession. However, imagine a market with far fewer investors. That would likely mean California prices would be tumbling this year."
Investor share of California single-family home purchases rose to 36% in the first half of 2025, up from 31% in 2024 and 16% in 2020. Investors accounted for an average 33% of purchases over the past 18 months versus 21% in 2015–23. The increase reflects investor financial strength enabling acquisitions despite very low affordability. Overall home sales have collapsed over three years, tracking a pace similar to the 2008 crash. Fewer investors would likely drive prices down, eroding homeowner equity and lender protections while improving affordability and reducing competition for house hunters. Small-scale investors remain the largest buyer group, though their influence has waned.
Read at The Mercury News
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