If you’ve been scrolling through your feed lately, you’ve probably seen people pointing fingers about why homes in Redlands and the Inland Empire feel so expensive. Many believe that big investors are scooping up all the properties and driving prices up.
But here’s the truth — that’s not what’s really happening.
The Truth About Investors in Our Local Market
Yes, investors play a role in Southern California real estate, especially in areas like Palm Desert, Riverside, and Redlands. But they’re not the ones buying up all the homes.
In fact, Realtor.com found that only 2.8% of all home purchases last year were made by large investors (those owning 50+ properties). That means about 97% of homes were bought and sold by everyday buyers and sellers — not corporate giants.
As Danielle Hale, Chief Economist at Realtor.com, explains:
“Investors do own significant shares of the housing stock in some neighborhoods, but nationwide, the share of investor-owned housing is not a major concern.”
So, if investors aren’t the main reason homes feel pricey, what is?
What’s Really Driving Home Prices in Redlands and Nearby Cities
The real challenge in the Redlands housing market (and much of the Inland Empire) isn’t who’s buying — it’s that there simply aren’t enough homes for sale.
Robert Dietz, Chief Economist at the National Association of Home Builders (NAHB), puts it perfectly:
“The fundamental driver of housing costs is the shortage itself—it's driven by the fact that there's a mismatch between the number of households and the actual size of the housing stock.”
This shortage has been years in the making. While demand from buyers continues to grow, new construction and resale inventory haven’t kept up, especially in sought-after communities like Redlands, Yucaipa, Highland, and Loma Linda.
That’s why prices have remained strong — not because of investors, but because supply just can’t meet demand.
The Bottom Line
It’s easy to assume investors caused today’s housing challenges. But in reality, what’s needed most in Redlands and the Inland Empire is more homes — and thankfully, new listings and construction activity are slowly increasing.
As more homes hit the market, buying may start to feel more achievable again.
If you’re curious about what’s happening in your neighborhood or thinking about making a move, let’s connect. I can help you understand current trends and opportunities — whether you’re buying, selling, or investing in Redlands real estate.
