Aerial view displaying various residential properties in Fresno, California, reflecting the vibrant local real estate market.
Fresno’s real estate market is witnessing a significant increase in investor ownership, amid challenging conditions for traditional homebuyers. The percentage of homes owned by investors has risen, indicating a notable shift in the housing landscape. High property prices and mortgage rates present obstacles for home sellers, leading many to become accidental landlords. Despite a slight decline in sales volume, home prices continue to rise, suggesting persistent demand. As investors pivot towards alternative opportunities, experts forecast potential market recovery in the coming years.
Despite a challenging housing environment marked by high prices and rising mortgage rates, Fresno County is experiencing an increase in investor ownership of residential properties. Current data indicates that approximately 22% of homes in Fresno are owned by investors, marking a notable trend in the local real estate landscape. This percentage is higher than the statewide average of 19-20%, positioning Fresno closer to other counties with significant investor influence.
Home sellers across Fresno are facing hurdles due to persistently high property prices and mortgage rates hovering around 6.5%. These factors have affected buyer activity, leading to a slowdown in sales volume. In January 2025, the median home price in Fresno reached about $390,000, reflecting a 6.6% increase compared to the previous year. Yet, the number of homes sold slightly decreased from 216 to 208, a 3.7% decline year-over-year. Despite the modest drop in sales volume, home prices continue to rise, underscoring ongoing demand for property in the area.
According to real estate researchers, when home sellers encounter difficulty finding buyers at current price points, they typically resort to three options: de-listing properties and waiting for better market conditions, lowering asking prices, or converting homes into rental units. The latter strategy creates a segment of properties owned by “accidental landlords,” a growing phenomenon where property owners retain homes as rental assets amid subdued sales markets.
Across Fresno County, civic and economic data reveal that 22% of homes are owned by investors. Neighboring counties exhibit even higher investor ownership rates: Tulare County at 25% and Merced County at 26%. Mariposa County stands out with the highest percentage, where 46% of homes are investor-owned. The presence of both large real estate investment trusts (REITs) and smaller “mom-and-pop” investors actively participating reflects a broad interest in acquiring income-generating properties as a hedge against market volatility.
Statewide, California’s investor ownership percentages are relatively lower, with only about 19-20% of homes owned by investors. In contrast, some states like Hawaii, where investor ownership can reach 40%, are significantly more reliant on landlord-held properties. California ranks in the lower half nationally, holding the 38th position for investor homeownership. The strongest markets nationally tend to be Hawaii, Alaska, and Vermont, where investor ownership rates are notably higher.
Analysts project a potential recovery for the Fresno housing market in the coming years. Real estate experts suggest that by 2026 and 2027, the market could see renewed growth after a period of decline, which has included a sharp drop in sales volume—down by 31% in 2024—and property values decreasing between 10% and 20% since 2022. Factors influencing this outlook include high interest rates, limited housing supply, and escalating costs associated with construction and borrowing.
The pace of new rental housing development has slowed considerably. In 2024, only about 600 rental units were completed, a significant decrease compared to previous years. Elevated construction costs driven by high interest rates, along with sluggish rental growth, have contributed to a tightening housing inventory. This scenario limits options for both homeowners and renters, maintaining upward pressure on home prices and rental rates.
Investors currently focus on multi-family properties, medical office spaces, and quick-service restaurants as preferred investment avenues. The overall context shows a market under stress, yet resilient, with strong demand for certain property types and expectations for eventual recovery as economic conditions stabilize. The complex interplay of high mortgage rates, limited supply, and increased construction costs continues to shape Fresno’s real estate landscape through 2025 and beyond.
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