Los Angeles Housing Department report relative to establishing a process to assess and report on trends related to the concentration of ownership and corporatization of the City’s housing stock that may negatively impact renters, limit small landlord ownership opportunities, and limit first-time homebuyer opportunities.

Summary

The Los Angeles Housing Department (LAHD) has released a report in response to a City Council directive to study the concentration of ownership and corporatization of the city's housing stock between 2018 and 2023. The report found a growing trend of organizational entities (corporations, LLCs, trusts) acquiring Rent Stabilization Ordinance (RSO) units, particularly in 2- to 10-unit buildings. This trend is also evident in single-family home sales, where "person-to-entity" and "entity-to-entity" transfers account for 23% of sales. The study highlights "recurring buyers and sellers" who engage in multiple transactions, indicating investment and property flipping strategies that can limit opportunities for small landlords and first-time homebuyers. LAHD recommends further study into specific areas like renter displacement risk, property flipping, acquisitions from distressed sellers, and the use of organizational entities by small landlords. The department is instructed to establish an ongoing process to assess and report on these trends.

Citizen Impact

This report indicates a growing trend of large corporate entities acquiring rental properties, potentially leading to increased rents and reduced opportunities for small landlords and first-time homebuyers. The findings may inform future policies aimed at addressing housing affordability and ownership concentration.

Confidence

high