CA senator wants to halt investors buying properties after disasters - Los Angeles Times

Los Angeles Times

by Grace Toohey

March 3, 2026

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California Senator Adam Schiff is set to introduce legislation aimed at curbing large corporate investors, such as private equity firms, from purchasing properties in disaster-stricken areas following natural disasters. The proposed bill would prohibit institutional investors who own 75 or more single-family homes from buying properties in declared disaster zones for six months after a major event. This move comes amid growing concerns that corporate buyers are exploiting vulnerable communities by acquiring burned lots at discounted prices, leading to long-term displacement of local residents and altering neighborhood character. The issue gained urgency following the 2025 Los Angeles County firestorms, where nearly 60% of property sales in affected areas like Altadena were made by investors. Schiff’s bill, part of a broader bipartisan housing package, would not retroactively address past purchases in places like Altadena or Pacific Palisades but aims to prevent similar trends in future disasters. Critics argue that the six-month cooling-off period is insufficient for communities to recover and make informed decisions about rebuilding. Schiff emphasized the predatory nature of corporate investors buying up大量 properties post-disaster, often offering artificially low bids that exploit families struggling to rebuild. While the legislation has garnered support from groups like the Altadena Not for Sale movement, some advocates believe it doesn’t go far enough. They point out that ongoing investor activity in fire-damaged areas continues to displace residents and erode community identity. The bill reflects a broader national conversation about rising corporate influence over housing markets and its role in declining homeownership rates. Schiff’s proposal aligns with calls for stronger regulations on institutional investors, aiming to protect local communities from economic displacement while fostering equitable recovery efforts after disasters.

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Originally published on Los Angeles Times on 3/3/2026