Housing prices in California increased by 25% last year, while the number of affordable units all but stagnated. One main factor for the rapid home value and rental price increases is the purchase of California real estate by private investment firms and particularly foreign non-residents. These buyers use real estate as an investment tool that rapidly drives up prices and prevents local residents from purchasing a home. Many of these buyers do not live in these homes and have no intention of renovating them but see them only as cash cows. They charge exorbitant rent, resale at ridiculous prices, and give very little back to the local economy.

The data is limited but indicates at least 35% of the houses in California in 2020-2021 were bought by investment firms and foreign non-residents. The actual percentage is probably much higher and maybe approaching 85% of real estate transactions in the state. Often the houses are older and are bought for cash. Many are suitable for first-time homebuyers who cannot compete for the rapidly increasing prices, but also include high-priced exclusive real estate. Many of these investment homes are not kept up to acceptable standards and yet residents are charged thousands of dollars per month in rent, if they are even lived in.

The state has the highest level of homelessness in the USA, but currently, there are no laws requiring information to even be collected pertaining to residency, citizenship, or country of origin of the home buyer.  There is no limit on the number of transactions allowed by law in the state or in the country as a whole involving foreign nonresidents and large investment firms. California has the highest prices for rent and real estate in the country and also has the largest levels of income inequality. There is a direct correlation. The residents and taxpayers of this state are being ripped off and harmed while foreign nonresidents and investors buy up our neighborhoods and homes and give nothing in return except higher prices. 

Our government and leaders need to 1) collect relevant data and 2) place limits on the number of investment firms and foreign non-residents buying real estate in California effective immediately.   3) A moratorium on these types of transactions needs to be enacted immediately. 4) Rent control needs to be reconsidered to battle the exorbitant rental prices in California where these foreign nonresident and investor transactions occur most.