California Gov. Gavin Newsom is following President Trump’s lead by calling for a shutdown on institutional investors from purchasing single-family homes.
The San Jose Mercury News reports 3% of California’s single-family homes are owned by large companies, according to a 2024 study by the nonpartisan California Research Bureau. A bill banning corporate buying and selling single-family homes has previously passed in the state assembly but died in the state Senate after intense lobbying from real estate agents and the California Apartment Association.
Newsom’s office did not acknowledge Wednesday’s announcement by Trump that he would seek a ban on corporate acquisition of single-family homes. Instead, it framed the announcement of having Newsom as a change agent for affordability.
“The fact is that large investors are purchasing homes faster than families can buy them,” said the governor’s office in a statement. “The governor believes that working families shouldn’t be competing with large, well-capitalized investors.”
Photo: Gage Skidmore / Flickr Creative Commons
I agree with Both Of them. Also , by Contolling the volume, they also control Price, which elevates the cost and makesit steeper for the working family to qualify.
why did you make it like Newsome was trying to take the credit for this from Trump? Newsome has been trying to get this done before, finally Trump weighed in…for once doing something for the average person, not the billionaires
i THINK ENCOURAGING CHURCH CORPORATIONS TO BUY PROPERTY FOR LOW INCOME HOUSING WOULD BE VERY WISE.
The corporate investors like to keep the homes so buyers can’t afford to buy what is available and they have to keep them renting.
They speak one way and their actions reveal something entirely different. Please take some time to consider a governor Newsoms attack on private property ownership rights especially evident since March 2020.
1. Landlords were singled out as individuals who were not due money (rent) if the tenant wasn’t able to pay. Why weren’t they able to pay? Oh yeah that thing we called a pandemic. Where many people were told that they couldn’t go to work. Stay at home. Stay safe!
Think that one through throughly. The government tells you you can’t go to work to make a living and then penalizes one group- the landlords.
2. They are increasingly treating private property as if it was public housing. Even Calif Assoc Of Realtors has bowed down and is no longer protecting the rights of private property ownership. (Prop 19- is prima facia evidence of this). Their indoors room of the use of the words “housing provider” to replace the word Landlord in contracts. Pay attention people. Small shifts are important to notice.
3. Zoning. I could spend a couple of hours on this. This assault on the rights of private property owners who own homes in nice clean safe neighborhoods. Where they intentionally paid more to live in nice clean and safe neighborhoods is exhaustive. Newsom reframes that as we need more affordable housing. Zoning be damned. Fires (that we didn’t prepare for and ruined neighborhoods) be damned. I do t want a 4-32 unit apt next to my single family residential home. I paid to live here in this neighborhood and I will do whatever I can to fight this lunacy of “climate change” and “affordable housing” crisis’ upon which this house of cards was built!!!!
So. They speak of keeping investors out of buying housing. Yet. The reality is that since March 2020 Newsom as the governor of this state has forced all cities to provide more affordable housing. Including affluent areas such as Coronado – an island and Huntington Beach where there is limited land and therefore economics would dictate higher land values and therefore a higher cost per sqft to build. That makes no sense.
When you do that you price buyers who could buy a small cottage and manage at $1 million to the side lines. Why? Because of a developer can put 4 units there. The “value” of the land went up above the $1 million mark. You have conferred greater value to the land by virtue of making the zoning more permissive. At the same time you have dramatically changed neighborhoods and lost a sense of community because they properties are now forever changed into rentals not homeownership opportunities.
So—— watch what they do. Not what they say. Actions speak louder than words.
For the sake of private property ownership rights and the sake of this nation of ours founded nearly 250 years ago this July 4, 2026. Put your thinking caps on. So what you can at your local and state levels and let’s be the catalyst that rights this ship.