LOS ANGELES (CNS) - The Los Angeles City Council moved forward today with an effort aimed at preventing large tech companies and private equity firms from purchasing affordable, predominantly single-family housing as investments.
"The housing crisis has been further exacerbated by high tech companies such as Zillow, Opendoor, Rockethomes and Redfin as well as private equity firms. These companies primarily target affordable, single-family homes and compete to buy up as much inventory as possible, flip them and then sell them for a profit," according to the motion, which was introduced by Council President Nury Martinez and seconded by Councilwoman Nithya Raman.
The motion, approved on a unanimous council vote, instructs the Chief Legislative Analyst and the City Attorney's Office to report on recommended strategies that Los Angeles can use to prevent tech and private equity firms from engaging in speculative practices involving affordable, single-family housing.
The move comes amid Los Angeles' worsening affordable housing crisis, with the city ranking among the top most unaffordable cities each year.
"As of August 21, the L.A. city recorded a price increase of 11.3% compared to the prior year," Martinez wrote in the motion. "Low-income Angelenos, who have lived in their neighborhoods for decades, are unable to compete with these iBuyers. This has led to many longtime residents being pushed out of their homes, neighborhoods and communities."
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