What do you think - CA could be Majority Renter State by 2025?

Question

The following Quote stopped me in my tracks and I had to read it a several times.

CAR projects that by 2025, California will be a majority renter state. “Home ownership is becoming a luxury item,” Appleton-Young said.

If this is true what does it mean to be a landlord in California going forward?

What do you think?

My Thoughts -

If Ownership is a Luxury Item then it should be very profitable to be a Landlord of Affordable Housing

It should be profitable with solid margins to Buy Slumlord Properties and Convert to Pride of Ownership Rentals

Is there a Dark Downside of being a landlord in CA if > 50% of residents are tenants???

What am I missing?

Z

Ali Boone · Answer

I know. It's terrifying.

Michael Zuber · Answer

@Neel Jain - It is going to pass for sure and it is going to be bad news for Owner Occupants and Tenants as Prices drop and Rental options disappear as Mom and Pop landlord push a lot more inventory to the market.

Neel Jain · Answer

@Michael Zuber @Ali Boone @Alan Reza- Prop 10 is very likely to get passed

Alan Reza · Answer

We've been watching Prop 10 closely to help decide whether we want to own rentals in CA or out of state.  If the majority of the population, and hence the majority of voters are not property owners, it could potential lead to anti-owner type legislation.  For example, repeals of the current annual property tax increase limits, or even limits on rental income or its income tax treatment in the state.  It could create a bi-polar between the electorate where it becomes an us versus them type owners versus renters environment.

Ali Boone · Answer

That it could. I've actually been meaning to search on here and see if anyone is talking about it in detail yet or not. I know it's been briefly mentioned but I haven't seen intensive conversations about it yet.

As a newer property owner in California (only new in CA, not new elsewhere), I'm dreading it getting voted Yes on....

Michael Zuber · Answer

@Ali Boone Great point.  Prop 10 certainly could bring some changes and some unintended consequences as well

Ali Boone · Answer

I think the more accurate answer to that question will depend on what happens on Prop 10 in a few weeks.