Newsom Proposes Measures to Curb Corporate Homebuying in California

California Governor Gavin Newsom is set to announce a crackdown on institutional investors purchasing homes in the state during a speech on Thursday. This move follows a similar announcement made by President Donald Trump.

In his address, Newsom will outline plans to collaborate with local legislators to target private equity and hedge fund investors who are acquiring homes in California. The focus will be on corporate entities that are buying properties at scale, as highlighted in an email from the governor’s office.

“The fact is that large investors are purchasing homes faster than families can buy them,” the governor’s office stated. “The governor believes that working families shouldn’t be competing with large, well-capitalized investors.”

Related: California Bill Would Require Insurer Claims Handling Plans, And Double Penalties

Newsom’s announcement comes on the heels of a similar measure proposed by Trump, marking a rare moment of agreement between the two political rivals. Trump has suggested banning institutional investors from purchasing single-family homes to tackle housing affordability issues.

Historically, Trump and Newsom have clashed on various issues, from education to immigration, with Newsom often emerging as one of Trump’s most vocal critics. Their simultaneous critiques of corporate homebuying illustrate how institutional landlords have become a common target for both Democrats and Republicans.

California was a pioneer for several institutional buyers of single-family rental homes following the 2008 financial crisis. However, the largest landlords have shifted their focus to Sun Belt states like Georgia, Florida, Arizona, and Nevada, where home prices are generally lower.

According to a 2024 study by the California Research Bureau, approximately 3% of California’s single-family homes are owned by large landlords, with publicly traded Invitation Homes being the largest. In contrast, large institutional landlords own less than 1% of the total U.S. single-family housing inventory, as noted by JPMorgan Chase & Co. analysts.

Trump’s announcement initially caused shares of single-family landlords to drop by as much as 10%. However, JPMorgan analysts, led by Anthony Paolone, suggested that this dip might present a buying opportunity for investors.

Related: Their Homes Survived The LA Wildfires; A Year Later They Fear Living in Them

While Trump’s proposal may face challenges in Congress, Newsom’s announcement is likely to resonate with progressives in the state legislature, where Democrats hold a supermajority. Last year, the state assembly passed a bill aimed at banning large single-family residential property owners from acquiring and leasing additional homes. However, the measure stalled in the state Senate due to opposition from real estate agents and the California Apartment Association.

“Having the governor’s backing and support is going to be crucial and very helpful,” stated Assemblymember Alex Lee, the bill’s author, who plans to pursue it again this year. Although Newsom has not endorsed a specific proposal yet, his support could significantly impact its chances.

Related: Morningstar: A Year Later, LA Wildfires Were ‘Significant Stress Event’ for Insurance

State Senator Scott Wiener expressed his support for legislation targeting corporate landlords but cautioned against policies that might hinder housing production. “There’s been a desire to do something about the gobbling up of single-family homes by institutional investors for a long time,” he remarked. “It is an issue that we need to deal with.”

As Newsom enters his final term-limited year as governor, he is also contemplating a presidential run. He has faced challenges in positioning himself as a leader on affordability issues, especially as California home prices have soared above $800,000. Recently, he has approved aggressive deregulation measures aimed at boosting housing production.

Top photo: Homes in Hercules, California. Photographer: David Paul Morris/Bloomberg.

Copyright 2026 Bloomberg.

Topics
California

California Governor Gavin Newsom is set to announce a crackdown on institutional investors purchasing homes in the state during a speech on Thursday. This move follows a similar announcement made by President Donald Trump.

In his address, Newsom will outline plans to collaborate with local legislators to target private equity and hedge fund investors who are acquiring homes in California. The focus will be on corporate entities that are buying properties at scale, as highlighted in an email from the governor’s office.

“The fact is that large investors are purchasing homes faster than families can buy them,” the governor’s office stated. “The governor believes that working families shouldn’t be competing with large, well-capitalized investors.”

Related: California Bill Would Require Insurer Claims Handling Plans, And Double Penalties

Newsom’s announcement comes on the heels of a similar measure proposed by Trump, marking a rare moment of agreement between the two political rivals. Trump has suggested banning institutional investors from purchasing single-family homes to tackle housing affordability issues.

Historically, Trump and Newsom have clashed on various issues, from education to immigration, with Newsom often emerging as one of Trump’s most vocal critics. Their simultaneous critiques of corporate homebuying illustrate how institutional landlords have become a common target for both Democrats and Republicans.

California was a pioneer for several institutional buyers of single-family rental homes following the 2008 financial crisis. However, the largest landlords have shifted their focus to Sun Belt states like Georgia, Florida, Arizona, and Nevada, where home prices are generally lower.

According to a 2024 study by the California Research Bureau, approximately 3% of California’s single-family homes are owned by large landlords, with publicly traded Invitation Homes being the largest. In contrast, large institutional landlords own less than 1% of the total U.S. single-family housing inventory, as noted by JPMorgan Chase & Co. analysts.

Trump’s announcement initially caused shares of single-family landlords to drop by as much as 10%. However, JPMorgan analysts, led by Anthony Paolone, suggested that this dip might present a buying opportunity for investors.

Related: Their Homes Survived The LA Wildfires; A Year Later They Fear Living in Them

While Trump’s proposal may face challenges in Congress, Newsom’s announcement is likely to resonate with progressives in the state legislature, where Democrats hold a supermajority. Last year, the state assembly passed a bill aimed at banning large single-family residential property owners from acquiring and leasing additional homes. However, the measure stalled in the state Senate due to opposition from real estate agents and the California Apartment Association.

“Having the governor’s backing and support is going to be crucial and very helpful,” stated Assemblymember Alex Lee, the bill’s author, who plans to pursue it again this year. Although Newsom has not endorsed a specific proposal yet, his support could significantly impact its chances.

Related: Morningstar: A Year Later, LA Wildfires Were ‘Significant Stress Event’ for Insurance

State Senator Scott Wiener expressed his support for legislation targeting corporate landlords but cautioned against policies that might hinder housing production. “There’s been a desire to do something about the gobbling up of single-family homes by institutional investors for a long time,” he remarked. “It is an issue that we need to deal with.”

As Newsom enters his final term-limited year as governor, he is also contemplating a presidential run. He has faced challenges in positioning himself as a leader on affordability issues, especially as California home prices have soared above $800,000. Recently, he has approved aggressive deregulation measures aimed at boosting housing production.

Top photo: Homes in Hercules, California. Photographer: David Paul Morris/Bloomberg.

Copyright 2026 Bloomberg.

Topics
California