LA may try to stop tech and private equity firms from buying homes as investments

LOS ANGELES — The Los Angeles City Council volition see a question introduced by Council President Nury Martinez aimed astatine preventing ample tech companies and backstage equity firms from purchasing affordable, predominantly single-family lodging arsenic investments.

“The lodging situation has been further exacerbated by precocious tech companies specified arsenic Zillow, Opendoor, Rockethomes and Redfin arsenic good arsenic backstage equity firms. These companies chiefly people affordable, single-family homes and vie to bargain up arsenic overmuch inventory arsenic possible, flip them and past merchantability them for a profit,” the question stated. It was seconded by Councilwoman Nithya Raman.

If passed, the question volition instruct the Chief Legislative Analyst and the City Attorney to study connected recommended strategies that Los Angeles tin usage to forestall tech and backstage equity firms from engaging successful speculative practices involving affordable, single-family housing.

The question comes amid Los Angeles’ worsening affordable lodging crisis, with the ranking among the apical astir unaffordable cities each year.

“As of August 21, the L.A. metropolis recorded a terms summation of 11.3% compared to the anterior year,” Martinez said successful her motion. “… Low-income Angelenos, who person lived successful their neighborhoods for decades, are incapable to vie with these iBuyers. This has led to galore longtime residents being pushed retired of their homes, neighborhoods and communities.”

The Los Angeles City Council volition see the question during its 10 a.m. gathering Friday. People tin ticker astatine clerk.lacity.org/calendar.