In California, new data reveals that one in five homes is owned by investors, highlighting an ongoing affordability crisis. The state’s overall investor home ownership rate is at 19%, with certain regions like Sierra county boasting an 83% share of investor-owned homes, while coastal Ventura county sits at just 14%. Notably, in seven California counties, including Sierra and Trinity, investors own more than 50% of homes.

Despite California’s urban counties having lower shares of investor-owned properties, the state is grappling with soaring home prices, which have surged by 50% in the past six years. This housing shortage is further exacerbated by the national average of 20% investor-owned homes, with California ranking 36th in the country. The US Chamber of Commerce estimates a shortage of roughly 4.5 million homes nationwide.

The report indicates a rise in investor-owned properties, accounting for 26.8% of all national residential property sales in the first quarter of 2025. This increase is attributed more to the rising costs of home ownership rather than heightened investor activity. While investors play a crucial role in providing liquidity in tight markets, concerns are raised about their impact on housing affordability.

Omar Ocampo, a researcher, questions the role of investors in making housing more affordable, noting their contribution to upward price pressure. The data also highlights other states with high shares of investor-owned homes, including Hawaii and Alaska. In terms of quantity, California ranks second in the country with 1.45 million investor-owned homes, following Texas and ahead of Florida. Small investors owning between one and ten properties collectively make up about 90% of the investor-owned homes in the state.