"In his final State of the State speech, Gov. Newsom took aim at a group that some say contribute to California's housing affordability crisis: corporate landlords. Newsom vowed to take a tougher stance toward institutional investors - such as hedge funds and private equity groups - that buy up hundreds or thousands of homes in order to rent them out. "I think it's shameful that we allow private equity firms in Manhattan to become some of the biggest landlords in many of our cities," he said, adding that the practice crushes the dream of home ownership and raises rents for Californians."
"It's unclear exactly which form the crackdown will take. "Over the next few weeks, we will work with the Legislature to combat this monopolistic behavior, strengthen accountability, and level the playing field for working families," he said. "That means more oversight and enforcement, and potentially changing the state tax code to make this work.""
"A pending bill would bar investors owning 1,000-plus single-family homes from acquiring more, though corporate landlords currently control just 2.8% of California's housing stock. Major institutional landlords face mounting legal pressure, including Invitation Homes' $48 million settlement for unfair evictions and withheld security deposits, highlighting concerns about corporate ownership's impact on California renters."
Gov. Newsom pledged a tougher stance against institutional investors such as hedge funds and private equity firms that buy large numbers of single-family homes to rent out. He characterized large-scale corporate ownership as crushing the dream of home ownership and raising rents for Californians. The administration plans to work with the Legislature on oversight, enforcement, accountability measures, and potential state tax code changes. A pending bill would bar investors owning more than 1,000 single-family homes from further acquisitions. Legal actions and settlements against major landlords underscore concerns about corporate ownership's impact on renters.
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