Is Wall Street Really Buying All the Homes?

Let’s be honest—buying a home in North County San Diego right now isn’t easy. You’re browsing listings, hustling to make open houses, and possibly losing out to competitive offers. Along the way, you may have heard that one reason it’s so challenging is that large Wall Street investors are swooping in and snapping up properties.

But here’s the thing: that’s mostly a myth. While investors are part of the market, according to Redfin, they’re a relatively small part:

Before you get discouraged, let’s take a closer look at what’s really happening. You might be surprised to learn that Wall Street isn’t the competition you think it is.

Most Investors Are Small Mom-and-Pops

Most investors aren’t the mega corporations you’ve probably heard about. In fact, many are your neighbors. A recent report from CoreLogic shows most investors are small, mom-and-pop types who own fewer than 10 properties. They aren’t massive companies with endless resources. Picture your neighbor who has another home they’re renting out or a vacation getaway.

Only about 1% of the market is owned by large, mega investors with thousands of properties. The majority are still owned by individuals and smaller investors – not the Wall Street giants.

Investor Purchases Are Declining

Not only are most investors small, but overall investor purchases have been on the decline. As the same report from CoreLogic says:

“Investors made 80,000 purchases in June 2024, compared with 112,000 in June 2023, and a nearly 50% percent drop from the high of 149,000 purchases in June 2021 . . .”

And what does this mean going forward? CoreLogic goes on to point out this downward trend is expected to continue into 2025.

So, if it seems like competition with investors is pushing you out of the market, it might help to know that investor activity is actually slowing down.

Bottom Line

The idea that Wall Street is buying up all the homes in North County, San Diego is mostly a myth. In reality, most investors are small-scale, and the share of homes purchased by investors is actually on the decline—so you can cross that worry off your list.

If you have any questions about the local housing market, let’s chat. At Shafran Realty Group, we’re here to guide you every step of the way.