San Diego County Supervisors Reject Plan to Limit Foreign Home Investment
In a pivotal vote, the San Diego County Board of Supervisors turned down a 4-1 proposal aimed at restricting foreign investment in the local housing market. Supervisor Jim Desmond, the only supporter of the measure, sought to place limits on foreign buyers of entry-level and single-family homes, especially around military installations. The proposal aimed to protect local homeownership opportunities amidst rising housing costs, with median prices hovering around $937,000.
Desmond argued that while many American families struggle to afford homes, foreign buyers often mitigate this by paying in cash, putting local residents at a distinct disadvantage, particularly first-time buyers who rely on mortgages. According to Desmond, foreign investments accounted for over $56 billion in U.S. real estate last year, with California receiving about 15% of those sales. Acknowledging the pressure on young families, Desmond lamented, “This vote is a slap in the face to the next generation.” He indicated that the focus was to regulate corporate investors like Blackstone rather than individuals or immigrant buyers.
Concerns Around Racial Discrimination
Opposition to the proposal arose from concerns that it inadvertently targeted specific minority groups. During the board meeting, Erin Tsurumoto-Grassi of Alliance San Diego highlighted the painful history of anti-Asian laws, linking Desmond's proposal to broader issues of discrimination in housing policy. Board Vice Chair Monica Montgomery Steppe also expressed that the language in the proposal could misrepresent the values of the community and cautioned about its potential legal ramifications, referencing similar laws in other states that are now facing legal challenges.
The Broader Impact on Housing Affordability
The debate around this proposal underscores a larger crisis facing San Diego County—housing affordability. Recent reports indicate that fewer than 17% of households can realistically afford the current median home prices, which necessitate substantial incomes and down payments. Critics of unrestricted foreign purchasing posit that this trend contributes to pushing local families out of the housing market.
As discussions continue, Supervisor Lawson-Remer emphasized the need for collaborative efforts to create effective solutions that address homeownership for San Diegans without promoting discriminatory practices. Desmond remains committed to advocating for policies that favor local buyers and the American Dream of homeownership.
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