"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."
Cotality tracks single-family home sales across 26 California metropolitan areas, distinguishing purchases by primary residents from investor buys, including rentals and second homes. Investor share rose to 36% statewide in the first half of 2025, compared with 31% for 2024 and 16% at the 2020 low, with a recent 18-month average of 33% versus 21% during 2015–23. Investor financial strength has enabled greater market clout amid severe affordability constraints. California homebuying activity has collapsed over three years to levels resembling the 2008 crash. Fewer investors would likely push prices down, reducing homeowner equity and lender security while improving affordability for buyers. Smaller investors remain the largest buyer cohort.
Read at www.ocregister.com
Unable to calculate read time
Collection
[
|
...
]