IRVINE, Calif.—Irvine home investors may soon be limited from buying up the city’s housing stock, after the City Council motioned on March 8 to develop policies that prioritize owner-occupied housing.
A common thread at council meetings is hearing about the “dire need” to create new units to meet growing housing needs, which has become a challenge due to investors purchasing rental properties, according to Irvine Mayor Farrah Khan.
“If we want first-time homeowners or growing families to stay here in Irvine, we must take action to limit investor-owned properties within our developments,” Khan said during a March 8 council meeting.
“We will continue to utilize every tool in our toolbox to move in the right direction and build wealth within our community.”
In fact, Irvine has seen a 6 percent to 8 percent year-over-year increase in investors purchasing the city’s housing stock, Khan said.
Councilwoman Tammy Kim said she supported the item because homeownership is a key way to build wealth for families.
“We have to hone in on preserving homeownership because that really is the path to building intergenerational wealth creation,” she said, noting that around 57 percent of Irvine residents are renters.
Kim said it is important to distinguish, policy-wise, between corporate investors and something like an individual purchasing a second home for their children to live in.
“We’ve got lots of different scenarios, and I want to make sure that we’re defining this in the same way,” Kim said.
The council unanimously voted to direct staff to return at a later date with policy options that prioritize owner-occupied housing in Irvine, limit investor-purchased housing, and “identify incentive programs for communities to build wealth through homeownership, including first time home buyer assistance programs.”
