Why is housing so dang expensive? There’s a raft of reasons, but one isn’t talked about enough. 

A troubling trend has emerged in the housing market over the last few years. Large corporations and Wall Street investors are increasingly buying up our scarce supply of homes — driving up prices for their own profit and making the housing affordability crisis worse. 

I think it's time the County took some steps to address this troubling trend. See our policy here.

Corporations Taking Over Our Homes

Since the pandemic, private equity giants have been snatching up houses and apartment buildings, gobbling up our already-limited housing inventory and leaving tenants and local communities to pay the price. 

Corporations have deep pockets to outbid individuals and small landlords — and when they win, they often raise rents to increase their profits and displace long-time residents. 

This practice not only puts homeownership out of reach for many hopeful buyers but also undermines the character, stability and diversity of our communities. 

According to the Federal Trade Commission, rental prices have surged nearly 20 percent since 2020, particularly affecting low-to-middle-tier apartments rented by lower-income residents. Rising shelter costs account for two-thirds of the inflation pressure driving up the cost of living.

This isn’t just about apartments. Corporations are also buying up single-family homes, stripping homeownership opportunities from San Diego families. Investor home sales reached an all-time high in the fourth quarter of 2023, with 35 percent of California homes sold to institutional investors, more than any other state. San Diego experienced the second-largest increase in investor home sales among metropolitan areas, and investors project a tenfold increase in corporate home buying by the end of the decade.

Let’s Block Corporations from Taking Over the Block

I’m introducing a policy next Tuesday at the Board of Supervisors to take local action to address these anti-competitive practices. Key actions include:

• Analyzing how pervasive commercial ownership of single-family residential properties is in San Diego County. I want to show neighborhoods with concentrations of owner-occupants vs commercial interests. 

• Exploring litigation options against corporate bad actors.

• Considering local ordinances and legislation to protect renters and homeowners.

• Supporting state legislation to rebalance the housing market and limit institutional investors' influence.

To protect residents and maintain fair housing markets, we must hold corporate bad actors accountable. These tools will help the County do its part to keep our homes in the hands of our friends, family, and neighbors — and not greedy corporations.

In Service,

Terra