A recent executive order targeting large corporations and institutional investors buying single-family homes has sparked renewed conversation about housing affordability. The intent is straightforward. Reduce competition from big investors so everyday buyers have a better chance at homeownership.

While the message resonates emotionally, the reality is that this policy is unlikely to meaningfully change housing conditions in North County San Diego.

How Much Housing Do Corporate Investors Actually Own?

Large institutional investors are often blamed for rising home prices, but their footprint is smaller than most people think. Nationally, corporations that own large portfolios account for roughly 1 to 3 percent of single-family homes. In California, including San Diego County, the percentage is similar and in many submarkets even lower.

Most investor-owned homes are held by small, individual landlords who own one to five properties. These are local owners, not Wall Street firms. In North County San Diego, the overwhelming majority of homes are still owned by people who live in them or by small-scale investors.

Because institutional ownership is limited, restricting these buyers does not suddenly free up large amounts of housing or bring prices down in a noticeable way.

Why This Will Not Shift Prices or Inventory Locally

Home prices in North County San Diego are driven primarily by low inventory, strict zoning, high construction costs, and sustained demand, not corporate purchasing. Even if every large investor stopped buying tomorrow, demand would still far outpace supply.

Affordability challenges come from too few homes being built and too many homeowners staying put. Policies that focus only on who buys homes miss the larger structural issues.

What Would Actually Help Housing Affordability

If the goal is to create real movement in the housing market, several strategies would have a greater impact:

Increase housing supply
Allowing more density, faster approvals, and a broader mix of housing types would help relieve long-term pressure on prices.

Update the capital gains exclusion
The federal capital gains exclusion has not kept pace with modern home values. Updating it would encourage longtime owners to sell, freeing up inventory and helping move-up and first-time buyers alike.

Encourage turnover, not stagnation
Many homeowners stay in place longer than they want to because selling creates a tax penalty or affordability challenge. Policies that reduce friction for sellers would help inventory more than restricting buyers.

Support first-time buyers directly
Down payment assistance, targeted tax credits, and financing support address affordability more effectively than limiting a small segment of buyers.

The Bottom Line

The executive order sends a strong signal, but its real-world impact on North County San Diego housing will likely be minimal. Corporate buyers are a small piece of a much larger puzzle. Meaningful change will come from increasing supply, modernizing tax policy, and making it easier for homeowners to move within the market.