Wildfire victims and other residents aren’t struggling to find temporary, permanent homes, with good vacant properties owned by individuals living thousands of miles away. I’m thinking that.
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Some Los Angeles residents are asking new questions about why millions of dollars of property are vacant while living thousands of miles away. This issue is now becoming more and more appropriate as a large portion of the city’s residents have been evacuated in the wake of historic wildfires.
Buying real estate in the US as an investment is nothing new to wealthy internationals, but this trend has become popular in LA, especially among Chinese investors after the 2008 financial crisis. Buyers began pouring money into US real estate while the market was low. In particular, Chinese buyers were drawn to the San Gabriel Valley due to the number of Chinese immigrant communities.
But what once was another fact you should know about the Los Angeles real estate market is the source of responsibilities as people who fled the Pallisard and Eton fires continue to search for homes.
“Why are there vacant houses here?” Pasadena real estate agent Ashley Radar asked the Wall Street Journal. “If there’s no adequate housing, you need a home that’s considered a shelter, not an asset or an investment strategy.”
Approximately 225,000 units (approximately 6.1%) of LA County’s residential stocks were vacant when the Census Bureau conducted its 2023 American Community Survey. Over 33,000 of these units were for “seasonal, recreational or occasional use.” Many of these vacant properties are owned by Americans who live in other cities and use them as their second home, or by individuals who inherit property that has not yet been used. It is important to be careful.
There are fewer homes in LA than most other US counties, according to Shane Phillips, a housing researcher at the Lewis Center for Regional Policy Research at Los Angeles. It does not change the general feeling that a house sitting in the sky is a wasted resource that could be better used.
Rentals have skyrocketed in the area due to wildfires, and some real estate agents have already been charged with allegedly cutting rental prices. Former Altadena resident Joan Nuguen and her husband of two children have been denied by three landlords (including one person who requested more than $16,500 in monthly rent) and had been temporarily entitled to a friend I signed a contract to rent a house. Following the fire, we decided to move to Rhode Island.
“This is the perfect moment to take that leap for the family who lives in the hotel and release that inventory,” Nguyen told WSJ. “If they’re open, allow the family to stay there.”
County officials have tried to regulate vacant homes for years, and have achieved mixed successes, highlighting the safety risks associated with no one caring for their property.
For example, San Marino City Council proposed a voting law to collect $10,000 in taxes on vacant commercial and residential properties in 2022, but this measure never passed. Still, San Marino, Arcadia and Temple City will need to have a homeowner away to register vacant property, pay fees and provide emergency contact information.
All have been a desirable region for foreign investors over the years, and have recently come from China, Mexico and South Korea, according to the deputy economists of the California Association of Realtors. In addition to serving as a stable investment, real estate can also be a place where buyers land on holiday throughout the year, or as a shelter for children and other young relatives attending nearby colleges.
According to an annual survey of real estate agents, home purchases by international buyers peaked in 2008 at around 10.6% of all home sales in 2008. In 2024, only 4.6% of all home transactions were carried out by foreign buyers. The slowdown could be attributed to both the US surge in real estate prices and more restrictions enacted by the Chinese government on foreign government purchases.
According to CAR research data, WEI said about 150,000 single-family housing units in LA County are likely owned by international buyers. Of these properties, approximately 27,000 are considered second homes or investment properties.
Some sellers who are concerned about vacant homes in the community asked if foreign buyers intend to live in the home during negotiations, San Marino agent Janice Lee told WSJ. She said about a tenth of her deals over her 40-year career in the neighborhood came with foreign buyers.
“I want to give them the bounty of doubt,” Lee said of buyers from overseas. “But we don’t want to have another vacant home in our community.”
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