Gov. Newsom plans crackdown on corporate homebuying in California

"California Governor Gavin Newsom will call for a crackdown on institutional investors buying up homes in the state during a speech Thursday, following a similar announcement by President Donald Trump. Newsom plans on saying he will work with local legislators to target private equity and hedge fund investors purchasing homes in California, particularly corporate entities buying at scale, the governor's office said in an email."

"The fact is that large investors are purchasing homes faster than families can buy them, the governor's office said. The governor believes that working families shouldn't be competing with large, well-capitalized investors. Newsom's announcement follows a similar measure floated on Wednesday by Trump, marking a rare convergence for the two political rivals. The president said he would ban institutional investors from buying single-family homes in an effort to address housing affordability."

"While California was the birthplace of several institutional buyers of single-family rental homes following the 2008 financial crisis, the biggest landlords focused more on Sun Belt states, such as Georgia, Florida, Arizona and Nevada, where homes were even less expensive. Around 3% of California's single-family homes are owned by large landlords, with publicly traded Invitation Homes being the largest owner, according to a 2024 study by the California Research Bureau, a nonpartisan research office."

Governor Gavin Newsom will call for a crackdown on institutional investors buying homes in California and plans to work with local legislators to target private equity and hedge fund buyers, particularly corporate entities purchasing at scale. The move comes after a similar proposal from President Donald Trump to ban institutional purchases of single-family homes to address affordability. Officials say large investors are buying homes faster than families can, and that working families should not compete with well-capitalized investors. Institutional landlords account for about 3% of California single-family homes and less than 1% nationwide, with Invitation Homes the largest California owner.

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