Governor Newsom unveiled a crackdown on large corporations that buy up single-family homes the same week President Trump announced a similar move.
Legislation is pointless unless it’s specific and enforced.
Newsome is bought by corps. This is performative with no actual consequence on rental or purchase costs for the average person.
prohibit institutional investors that already own more than 1,000 single-family homes from purchasing any additional properties to convert into rentals. The bill has already passed the full Assembly and now awaits approval from the state Senate before it goes to Newsom’s desk for his signature.
Useless
I wonder how easy it’ll be to avoid.
(1) “Business entity” means any association, company, firm, partnership, corporation, limited liability company, limited liability partnership, real estate investment trust, or other legal entity, and that entity’s successors, assignees, or affiliates
To me ‘affilates’ seems like the key one, but I don’t really know what it means legally. Anyone understand this well enough to comment?
The proposed statewide legislation has faced pushback from rental and realtor associations, including the National Rental Home Council, which argues the bill unfairly targets large investors and could harm the rental housing supply.
Hurting you is the point you parasitic cunts. There shouldn’t be a rental market as long as homelessness exists.
Assembly Bill 1240, proposed and authored by State Assembly Member Alex Lee, would prohibit institutional investors that already own more than 1,000 single-family homes from purchasing any additional properties to convert into rentals.
One thousand already seems insanely large, and I’m a one apartment renter.
How did he come to choose one thousand for a limit? Is that a low number? A high number?
1000 single family homes is a lot. That doesn’t include multi-unit buildings like apartments.
Corporations shouldn’t own any single family homes.
I don’t want to make perfection the enemy of good here so if say this is a step in the right direction to introduce some level of control. But it needs to go much further than simply restricting the totally number of houses they can own.
Multi unit properties should be the only form of real estate investment. I’m not going to begrudge a person for holding onto there last house as a rental when they move because there is a market for single family home rentals that’s reasonable.
1000 units is way to much and will just lead to subsidiaries or passthrough entities being formed to continue current practices.
Should be like 10, even that it’s too much imo but I’m less worried about the small time landlords than the big corps.
As long as this is just the first step it’s ok, but we need to force corporations to return inventory to the market.
It’s not huge, but a bigger step than it feels like. I think some of us don’t realize how bad it’s gotten.
The law probably was based on items like this report that defines ‘Mega Investors’ as investors owning 1000+ properties: https://www.brookings.edu/wp-content/uploads/2023/11/20231102_THP_SingleFamilyRentals_Proposal.pdf
This is a bit out of date too but it affects a larger share than you’d expect.
Good God. I mean, something is better than nothing but what the fuck?
They shouldn’t be able to own single family homes ful stop.
People love to talk about the fact that Corp pandlords only account for 3-5 percent of all homes while ignoring the fact they they were purchasing 20-30 percent of single family homes over the last 6 years and it was hyper concentrated in the fastest growing suburban areas.
Tighter restrictions would have a fucking huge impact on prices
