Fresno, California, July 29, 2025
News Summary
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.
Fresno, California: Rising Investor Ownership Amid Challenging Market Conditions
High Prices and Mortgage Rates Strain Home Sellers
Recent observations in Fresno’s real estate market highlight increasing difficulties faced by home sellers. Elevated property prices combined with mortgage rates around 6.5% have made borrowing more costly, leading to decreased buyer activity. Consequently, many sellers find themselves struggling to sell their homes and are left with three primary options: de-list their properties and wait for better conditions, cut prices to attract buyers, or convert their homes into rental properties. The latter results in the emergence of “accidental landlords,” individuals who own homes but rent them out instead of selling.
Investor Ownership Trends in Fresno County
Fresno County has seen a notable increase in investor-owned homes. Currently, approximately 22% of homes in the county are owned by investors. This percentage is higher in neighboring counties, with Tulare County at 25% and Merced County at 26%. Mariposa County stands out, with nearly 46% of homes owned by landlords. These figures indicate a growing trend of investors acquiring properties across the region.
Types of Investors and Market Dynamics
The investor activity in the area includes both large Real Estate Investment Trusts (REITs) and smaller “mom-and-pop” investors. Such investors are seeking additional income streams by purchasing rental properties. While Fresno’s investor-owned home percentage is rising, statewide data shows only 19-20% of homes are owned by investors in California—a figure considerably lower than states like Hawaii, where the rate reaches 40%. California ranks 38th nationally for investor-owned homes, placing it in the lower half among U.S. states. Hawaii, Alaska, and Vermont lead with the highest percentages of investor-owned properties.
Market Conditions and Price Trends
As of January 2025, Fresno’s median home price stood at approximately $390,000, reflecting a 6.6% increase from the previous year. Homes are selling quickly, with an average duration of about 32 days on the market. The total number of homes sold in January 2025 slightly decreased to 208 from 216 in the prior year—a decline of 3.7%. Despite the lower sales volume, prices continue to climb, indicating sustained demand.
Nationally, the median home price reached $396,900 at the same time, positioning Fresno’s median slightly below the national average. However, high mortgage rates are expected to influence future market activity by increasing borrowing costs, potentially dampening buyer interest further.
Investment Focus and Market Challenges
Currently, investors are focusing on multi-family properties, medical office spaces, and quick-service restaurants as viable investments. The real estate market has experienced a sharp drop in sales volume, declining by 31% in 2024, and property values have decreased by between 10% and 20% since 2022. Real estate experts anticipate a market recovery might occur in 2026 or 2027 after several years of decline.
Fresno’s housing market faces multiple challenges, including high interest rates, a constrained housing supply, and increased costs associated with construction and loans. In 2024, only about 600 rental units were built—a significant decline compared to previous years—highlighting the slowing growth of new apartment developments. Experts attribute this slowdown to the rising costs for builders, driven by high interest rates and limited rental demand, which results in a tight housing market.
Summary of Key Market Indicators
- Home price (January 2025): ~$390,000
- Year-over-year home price increase: 6.6%
- Average days on market: 32 days
- Homes sold (January 2025): 208 (down from 216)
- Sales volume decrease (2024): 31%
- Property value decline since 2022: 10-20%
- Homes owned by investors in Fresno County: 22%
- Homes owned by investors nationwide: 19-20%
Frequently Asked Questions (FAQ)
What is the current trend in Fresno’s real estate market?
The Fresno market is experiencing rising home prices and decreased sales volume, with many sellers converting homes into rentals amid high mortgage rates and limited buyer activity.
What percentage of homes are owned by investors in Fresno?
Approximately 22% of homes in Fresno County are owned by investors, with neighboring counties showing higher ownership rates.
How do Fresno’s investor ownership rates compare nationally?
Fresno’s investor-owned home percentage is slightly above the California average and lower than states like Hawaii, which has about 40% of homes owned by investors.
What are the main challenges facing Fresno’s housing market?
The market faces high mortgage rates, limited housing supply, rising construction costs, and declining new rental development, all contributing to a tight housing market.
Key Features Overview
| Feature | Details |
|---|---|
| Median Home Price (Jan 2025) | $390,000 |
| Price Change Year-over-Year | +6.6% |
| Average Days on Market | 32 days |
| Homes Sold (Jan 2025) | 208 (down from 216) |
| Sales Volume Decline (2024) | 31% |
| Property Value Drop Since 2022 | 10-20% |
| Investor-Owned Homes in Fresno | 22% |
| National Investor Ownership | 19-20% |
Deeper Dive: News & Info About This Topic
HERE Resources
Additional Resources
- ABC30: Valley Homes Owned by Real Estate Investors
- Norada Real Estate: Fresno Real Estate Market
- The Business Journal: Fig Garden Village Sold to New Investors
- Wikipedia: Real Estate in the United States
- Google Search: Fresno Real Estate Market
