Despite high prices and tight inventory, homebuyers continue to enter California’s real estate market — though the profile of today’s buyer is shifting.
First-Time Homebuyers
While fewer than in previous years due to affordability challenges, first-time buyers are still active, especially in:
- Inland markets: Bakersfield, Fresno, Merced
- With assistance programs: Using FHA loans, CalHFA down payment help, or family support
These buyers tend to be younger professionals or growing families seeking more space and stability.
Remote Workers and Digital Nomads
With remote work still common, some buyers are relocating from high-tax or high-cost states (like New York or Illinois) to more affordable parts of California.
- Prefer cities with good internet and outdoor amenities
- Often settle in Central Valley or mountain communities
Investors and Cash Buyers
Investors remain a strong presence in California’s housing market:
- Purchasing rental properties in mid-tier neighborhoods
- Snapping up foreclosed or distressed homes
- Using all-cash offers to outbid traditional buyers
This group includes both individual investors and institutional firms buying for long-term rental portfolios.
Retirees Staying Put or Relocating Within State
Some retirees are downsizing or moving to lower-cost areas within California:
- From coastal regions to inland communities
- Into 55+ communities or smaller homes with less upkeep
Many do so to manage living costs while staying close to family or healthcare services.
All-Cash Buyers and Luxury Market Entrants
In high-end markets like Los Angeles, San Francisco, and Malibu:
- Ultra-wealthy individuals and celebrities are purchasing luxury estates
- International buyers are still present, though slightly reduced post-pandemic
- Many transactions occur off-market or as all-cash deals
Conclusion
Homebuyers in California today include a mix of first-time buyers, remote workers, investors, retirees, and high-net-worth individuals. While affordability remains a challenge, demand persists — particularly in more accessible markets and among those leveraging technology, relocation trends, and investment strategies.
FAQs
Q: Who is currently buying homes in California?
A: First-time buyers, remote workers, investors, retirees, and luxury buyers are the main groups active in the market.
Q: Are investors driving up home prices?
A: Yes — cash buyers and institutional investors often outbid regular buyers, especially in mid-tier markets.
Q: Are people moving into California to buy homes?
A: Some remote workers and residents from high-cost states are relocating to more affordable California regions.
Join The Discussion