A Day After Trump Targets Wall Street Landlords, Newsom Echoes the Message
In a striking political crossover, California Gov. Gavin Newsom and President Donald Trump are advancing the same populist argument on housing affordability: that deep-pocketed investors are crowding out everyday buyers and driving up costs.
The unlikely alignment highlights how rising home prices and rents have reshaped the political conversation; and pushed leaders from opposite ends of the spectrum toward the same target.
An Unlikely Alliance on Housing
Newsom and Trump are long-standing political adversaries, but both are now pointing the finger at large institutional investors as a core contributor to the housing crisis. Each argues that Wall Street firms buying up single-family homes leave families competing against corporate balance sheets.
Newsom’s New Populist Turn
In his final year in office, Newsom tells lawmakers during his State of the State address that California must curb large investors’ role in the housing market. His office says the goal is to restore homeownership opportunities for residents increasingly priced out.
What Newsom Is Proposing; and What He Isn’t
Unlike Trump, Newsom is stopping short of calling for an outright ban. Instead, his administration is exploring enhanced state oversight, stronger enforcement, and possible changes to the tax code that would limit incentives for large investors to stockpile homes.
Trump’s Blunt Call for a Ban
Trump took a more sweeping rhetorical approach, announcing on Truth Social that he is “immediately taking steps” to ban large institutional investors from buying additional single-family homes. The statement rattled markets, sending shares of major rental home firms sharply lower.
A Familiar Target With Fresh Urgency
Blaming Wall Street for housing woes has gained traction across the ideological spectrum. Progressives like Rep. Alexandria Ocasio-Cortez and conservatives aligned with Trump have increasingly embraced the argument as voter frustration with affordability intensifies.
The Los Angeles Wildfire Factor
Investor activity has drawn renewed scrutiny in post-fire Los Angeles. A Redfin report found that more than 40% of burned vacant lots sold in Altadena were purchased by buyers tied to LLCs or corporations, fueling concerns about predatory offers to displaced homeowners.
How Big Is the Investor Footprint in California?
Despite the rhetoric, institutional investors own a relatively small slice of California’s housing stock. Fewer than 3% of single-family homes are owned by companies with at least 10 properties, according to the California Research Bureau, raising questions about how much impact new restrictions would have.
Invitation Homes and the Role of Enforcement
Invitation Homes, the state’s largest corporate homeowner, owns more than 11,000 California properties and recently settled allegations of illegal rent hikes. The case underscores how enforcement, rather than outright bans, may shape the next phase of policy.
Lawmakers Revive Long-Stalled Proposals
Several bills aimed at limiting investor ownership have failed in recent years, but momentum may be shifting.
Assembly Bill 1240, introduced last February by Assemblymember Alex Lee of San Jose, would bar corporations that already own more than 1,000 single-family homes from purchasing additional properties to rent out. Under the proposal, violators could face lawsuits from the state Attorney General, financial penalties, and court orders forcing the sale of the homes; restrictions that would affect at least four companies, according to the California Research Bureau. The bill now awaits Senate consideration.
Politics Meets Affordability
For Newsom, the move marks a shift from his long-standing focus on boosting housing construction toward a more explicitly populist message. With affordability dominating voter concerns; and a potential 2028 presidential run looming; targeting corporate landlords may offer political as well as policy appeal.
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Nearly 500,000 West Virginia Social Security Recipients Are About to See Bigger Checks in 2026
Nearly half a million Social Security recipients in West Virginia are set to receive higher monthly payments as the state completes a long-planned phaseout of its income tax on Social Security benefits. Starting in 2026, benefits will no longer be taxed at the state level, putting more cash directly into retirees’ pockets.
Nearly 500,000 West Virginia Social Security Recipients Are About to See Bigger Checks in 2026
Major Student Loan Changes Coming in 2026; From Parent PLUS Caps to the End of SAVE
Federal student loans are about to change in some of the biggest ways in decades. Beginning in 2026, new laws will reshape how much students and parents can borrow, eliminate long-standing loan programs, and overhaul repayment for future borrowers. For families planning for college, graduate students weighing advanced degrees, and borrowers already navigating repayment, these shifts could significantly alter education and financial decisions.
Major Student Loan Changes Coming in 2026; From Parent PLUS Caps to the End of SAVE
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John Dealbreuin came from a third world country to the US with only $1,000 not knowing anyone; guided by an immigrant dream. In 12 years, he achieved his retirement number.
He started Financial Freedom Countdown to help everyone think differently about their financial challenges and live their best lives. John resides in the San Francisco Bay Area enjoying nature trails and weight training.
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