AB 1333 Seeks to prohibit the bulk sale of two or more parcels of single-family homes to defined institutional investors, thus opening up home purchasing to families and individuals.
SACRAMENTO, CA) – As housing prices continue to rise in California, homeownership is becoming increasingly elusive to homebuyers. At the same time, the trend of “build-to-rent” communities is growing in California, severely limiting the ability of first-time and first-generation homeowners from competing for new homes.
Last year, Assemblymember Chris Ward introduced AB 1333 to prohibit the bulk sale of two or more parcels of single-family homes to defined institutional investors, granting families and individuals the same opportunity to purchase homes which would otherwise be sold directly to institutional investors.
AB 1333 passed the Assembly Floor with bipartisan support and will be taken up by the State Senate later this year.
“More and more, homebuilders are offloading supply in bulk to Wall Street investors at a discounted rate before they are even listed on the housing market,” said Assemblymember Ward (D-San Diego). “Additionally, investors often have access to a line of credit or are able to pay in cash so they can expedite these transactions. AB 1333 will level the playing field to give Californians back lost opportunities, so families can realize the dream of homeownership and build generational wealth.”
According to a 2022 report from real estate market analyst Yardi Matrix, more than 1,000 “build-to-rent” units were under construction in California, which will be unavailable to Californians seeking to purchase a home. This number is part of a rising trend happening nationally.
AB 1333 specifically prohibits the bulk sales of “build-to-rent” communities to institutional investors, defined as an investor with more than 1,000 units in its portfolio as an entity, including a limited liability company, limited liability partnership, or other entity that may have multiple affiliated or linked entities serving as a subsidiary or parent company.
“C.A.R. thanks Assemblymember Ward for AB 1333, which helps to ensure that the dream of homeownership for our state’s first-time and first-generation home buyers remains possible,” said C.A.R. President Melanie Barker. “Today, only 15% of California’s working families can afford to purchase a median priced home, which is expected to climb to $860,300 in 2024. Now, more than ever, increasing housing supply is crucial as we work to ensure more California families have the ability to establish generational wealth through homeownership in the most affordable and diverse areas of the state.”
LEGISLATIVE COUNSEL’S DIGEST
- Dec 12, 2023 – End Hedge Fund Control of American Homes Act Introduced (would impact home purchasing ability)
1 comment
As always when government attempts to intervene in private markets, there will be unintended consequences should this pass.
Comments are closed.