Newsom vows crackdown on corporate homebuying in California
Los Angeles Times • • business
Key Points:
- Governor Gavin Newsom, in his final State of the State speech, pledged to crack down on institutional investors like hedge funds and private equity firms that buy large numbers of homes to rent out, blaming them for driving up rents and limiting home ownership in California.
- Newsom plans to work with the state legislature on measures to increase oversight, enforcement, and possibly amend the state tax code to address what he calls monopolistic behavior by corporate landlords.
- The legislative effort aligns with Assembly Bill 1240, which seeks to ban investors owning at least 1,000 single-family homes from purchasing more, but the bill has faced opposition and is pending a Senate committee hearing.
- While investor purchases surged during the pandemic, data show corporate ownership accounts for a
