Are Big Investors Really Buying Up All the Homes Today in San Diego?
If you’re thinking of buying a house in San Diego, you might wonder if big investor home buyers are snatching up all the homes. Maybe you’ve read about it or seen social media reels suggesting that investor activity is making it harder for the average buyer. However, there’s a lot of misinformation out there. Let’s clear things up and look at what’s happening. The peak of big investor activity is actually behind us.
The Wall Street Journal explains:
“Investors of all sizes spent billions of dollars buying homes during the pandemic. At the 2022 peak, they bought more than one in every four single-family homes sold, though more recently their activity has slowed as interest rates rose and supply became tighter.”
The Reality of Investor Activity
The key takeaway is that investor activity has slowed significantly. Even during the peak of investor buying, three out of every four single-family homes were purchased by regular buyers, not investors. Additionally, most investors over the past few years were not the big corporations you might hear about. The majority were small, mom-and-pop investors—people like your neighbors who own just a few properties, maybe only their main residence and a vacation home.
Now, let’s focus on the large mega-investor firms since they’re often the subject of social media discussions. Mega investors are those who own over 1,000 properties. Surprisingly, according to the Wall Street Journal, these firms don’t buy many homes. During the peak in 2022, they purchased about 2% of available single-family homes. Recently, this percentage has dropped even more, becoming negligible.
To understand why this percentage is decreasing, private lender RCN Capital asked investors about their challenges. Jeffrey Tesch, CEO of RCN Capital, found:
“Investors are already facing many challenges in today’s housing market – rising prices, limited inventory, and higher financing costs.”
The Impact on the San Diego Housing Market
These challenges highlight that big investors are not taking over the housing market. So, don’t believe everything you hear. They aren’t buying all the homes, which makes it impossible for regular people to purchase properties.
In San Diego, this trend is particularly relevant. With its desirable neighborhoods and competitive market, it’s essential to understand the real dynamics at play. Despite the noise, regular buyers still dominate the San Diego housing market. Keep this in mind as you navigate your home-buying journey.
Bottom Line
Big investors aren’t buying up all the homes in the market. While investor activity has increased, there’s still a healthy mix of buyers, including families and individuals looking for their dream homes in San Diego. The local market remains diverse and competitive, offering plenty of opportunities for all types of buyers.
If you’re curious about what you’ve been hearing regarding the housing market, let’s talk. The McT Real Estate Group is here to provide clarity and help you understand the current trends and dynamics in San Diego’s real estate scene. Whether you’re considering buying or selling, We can offer the insights you need to make informed decisions. Let’s chat and get to the heart of what’s really happening in our vibrant market.
