Sacramento, California – California’s housing crisis has reached a new boiling point, with a recent revelation showing how Wall Street-backed investment companies have increasingly purchased homes, exacerbating affordability issues.
A real estate analyst in Sacramento, Ryan Lundquist, created a map that highlights the striking extent to which these corporate entities control the housing market in the state.
Wall Street’s Influence on Homeownership
Invitation Homes, a Texas-based company, is one of the largest culprits in this growing trend. According to Lundquist’s findings, the company owns a staggering 11,000 homes across California, with nearly 2,000 properties located in Sacramento alone.
Lundquist’s map clearly shows the concentration of these properties in areas like Natomas and South Sacramento, indicating the vast reach of corporate-owned homes in residential neighborhoods.
Invitation Homes is the nation’s largest single-family leasing and management company. While it markets itself as a provider of rental homes, critics argue that the growing presence of corporate investors in the housing market is pushing homeownership further out of reach for local families.
Legislative Pushback
California Democratic Assemblymember Alex Lee has proposed a law to cap the number of single-family homes that can be bought by corporations in the state.
Lee argues that these corporate investors are engaging in “housing-crisis profiteering” by buying up homes, thus narrowing the market and preventing local residents from purchasing homes.
Lee’s legislation aims to curb this growing trend and prioritize homeownership for California residents rather than large investment companies.
Invitation Homes’ Response
A spokesperson for Invitation Homes responded to Lee’s proposed legislation, claiming that the narrative of corporate entities driving up housing costs distracts from the real issues at the root of California’s high housing prices.
The spokesperson emphasized that rising costs are tied to broader market factors, rather than solely corporate ownership.
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In 2024, Invitation Homes was involved in a legal settlement with California’s attorney general, agreeing to pay $2 million after being accused of price gouging in the state’s rental market.
Moving Forward
Lee’s proposed bill has passed through the California Assembly and now heads to the Senate Judiciary Committee for further review. As the battle over housing affordability intensifies, the role of large corporations in the real estate market remains a central issue in the ongoing debate.
What are your thoughts on the growing role of corporate investors in the housing market? Do you think capping corporate homeownership is the right solution to California’s housing crisis? Let us know in the comments below!
For more updates on California’s housing policies, visit ridgecrestpact.org.
