CA Sen. Schiff introduces measure to limit corporate home buying after disasters
In response to large investment firms buying up burned lots in Southern California, Sen. Adam Schiff introduced federal legislation this week to restrict corporate investors from purchasing homes after natural disasters.
The bill, announced Tuesday, would prohibit large investors from buying homes for six months after an area is affected by a major disaster. Under the legislation, a corporate investor would be defined as those who own 75 or more single-family homes.
Roughly 3% of single-family homes are owned by holders of at least 10 properties in California, according to the California Research Bureau.
“Across the country, Americans have witnessed giant corporate landlords and Wall Street firms buying up droves of lots in the wake of natural disasters with artificially low offers that take advantage of vulnerable families… It’s time we crack down on this predatory practice,” Schiff said in a written statement.
Schiff’s bill follows the aftermath of last year’s Eaton fire in Southern California. Of 289 properties sold in Altadena after the fire, nearly two-thirds were bought by limited liability investors and private equity firms, according to reporting from The Los Angeles Times. The legislation, which Schiff hopes to include in a bipartisan housing package, would not be retroactive.
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Schiff’s spokesperson, Ian Mariani, said the legislation remains in its early stages and without any official bipartisan support though he pointed to Republican “interest” based on recent comments from President Donald Trump.
At his State of the Union address last month, Trump reiterated that he would like to ban institutional investors from buying single-family homes. He made a similar statement in January, claiming the move would make housing more affordable.
“Homes for people,” Trump said during the State of the Union. “Really, that’s what we want. We want homes for people, not for corporations.”
Gov. Gavin Newsom took a similar position at his State of the State speech in January.
“I just humbly submit, I think it’s shameful that we allow private-equity firms in Manhattan to become some of the biggest landlords here in our cities in California,” Newsom said.
Newsom added that he would collaborate with state lawmakers to combat “monopolistic behavior, and strengthen accountability, level the playing field for working families,” according to previous reporting from The Sacramento Bee.
Last year, Assemblymember Alex Lee, D-San Jose, introduced a bill to prohibit firms that own more than 1,000 single-family homes from buying or leasing more properties. If passed, companies would be liable for fines, lawsuits from the Attorney General’s Office and forced to sell. The bill passed the Assembly and is currently in the Senate.
This story was originally published March 5, 2026 at 5:00 AM.
