Following the Money: Where Investors Are Shaping the California Housing Market
It’s a question on the mind of nearly every California homebuyer: who am I competing against? The answer, increasingly, includes a wide range of investors, from massive corporations to individuals with a handful of rental properties. A recent analysis based on data from BatchData pulls back the curtain on investor activity across the state, revealing that roughly one in six California houses is owned by someone who doesn’t live there. For San Diego, this trend has significant implications .
As your local real estate experts, we’re breaking down the numbers to show you where the money is flowing and what it means for the San Diego market.
Southern California: The Investor Hotspot
The data is clear: Southern California is the epicenter of real estate investment in the state. The top five counties with the highest number of investor owned homes are all in our region:
1.Los Angeles: 179,294 homes
2.San Bernardino: 123,088 homes
3.Riverside: 103,183 homes
4.San Diego: 79,127 homes
5.Orange: 74,663 homes
San Diego ranks fourth for the sheer number of homes owned by investors and third for the total amount of money spent, with a staggering $36 billion invested in our local housing market between 2020 and the third quarter of 2025 . This massive influx of capital highlights the desirability of our market but also underscores the competitive pressures facing traditional homebuyers.
What This Means for San Diego
While investors own a smaller percentage of homes in dense urban areas compared to vacation hotspots, their impact is magnified by the sheer volume of their activity. In a market as sought after as San Diego, investors represent a significant and consistent source of competition.
For Buyers: The presence of so many cash heavy investors means that being prepared is non negotiable. This is where having a strong pre approval, a clear understanding of your budget, and a savvy negotiation strategy becomes critical. It’s not just about finding the right home; it’s about being able to compete effectively. Working with an experienced local agent who understands the nuances of our market can give you the edge you need.
For Sellers: High investor demand is a strong indicator of our market’s health and resilience. It means there is a deep pool of buyers who recognize the long term value of owning property in San Diego. This can lead to a faster sale and a strong return on your investment. However, it’s still crucial to price your home correctly and present it in the best possible light to attract the most competitive offers.
The Big Picture: A Two-Tiered Market
The data also reveals a fascinating split in California’s housing market. In remote, scenic counties, investors (often as vacation homeowners) own a huge share of the properties—sometimes over 70%. In contrast, in major job centers like San Diego, the investor share is a more modest 13-17%, but the total number of properties and the dollars involved are immense .
This trend is reshaping the landscape of homeownership in California. As a San Diego real estate brokerage, our mission is to help our clients navigate this complex environment successfully. Whether you are a first time buyer trying to break into the market or a homeowner looking to maximize your equity, we have the expertise and the local knowledge to guide you.
Curious about how investor activity is affecting your specific neighborhood? Contact us for a detailed market analysis.
Based on reporting from the San Diego Union-Tribune, read the full article here: https://www.sandiegouniontribune.com/2026/02/14/where-are-house-investors-most-active-in-california/