In Los Angeles (LA), California, where more than 10,000 buildings were destroyed by a large wildfire, the issue of "vacant homes" is emerging as a new social problem. Thousands of residents who lost their homes in the fire are struggling to find new dwellings, as it has become difficult to locate available housing.
On the 10th (local time), The Wall Street Journal (WSJ) reported, "In a luxury neighborhood about 16 km away from the area affected by the recent wildfire, untouched luxury dwellings are situated on lawns. However, some of them are vacant, and the homeowners reside in China."
The "vacant home problem" has been a concern for LA for several years. According to a survey conducted by the U.S. Census Bureau in 2023, approximately 6.1% of all dwellings in LA County, or 225,000 homes, are vacant. Among these, more than 33,000 vacant homes are classified as vacation or occasionally used.
In recent years, wealthy foreigners have been purchasing homes in LA. Currently, it is estimated that about 150,000 single-family dwellings are owned by foreign buyers in LA County. Notably, Chinese individuals comprise a significant proportion, having flocked to areas like the San Gabriel Valley after the housing prices in LA dropped following the 2008 financial crisis.
Oscar Wei, an economist at the California Association of Realtors (CAR), noted, "Many foreign buyers who purchased homes in recent years are from China, Mexico, and Korea." The dwellings owned by foreign buyers are used when they visit the U.S. for a few weeks each year to spend their holidays. Occasionally, homes owned by foreigners come onto the market as rental properties.
Ashley RAY, an agent at the real estate company Compass, which is looking for new housing for over 10 residents who lost their homes in the wildfire, said, "Why are there so many vacant homes here?" She added, "In a situation where there is a housing supply shortage, dwellings need to be recognized not just as assets or investment tools but as living spaces."
Wildfire victims express dissatisfaction with the situation where vacant homes are left abandoned. Joan Nguyen (39), who lost her home in Altadena due to the Eaton fire, is living temporarily in vacant rooms of family members and friends. Nguyen said, "Homeowners should put the vacant homes on the market so that families staying in hotels can have a place to stay."
The LA County authorities have not completely ignored the vacant home problem so far. They have sought to regulate vacant homes due to safety issues arising from their lack of management and wished to investigate the situation for several years. In 2022, the San Marino City Council proposed a bill to impose a $10,000 tax on vacant commercial and residential properties, but it was ultimately defeated.
Calvin Lo, a member of the San Marino City Council, urged, "At the very least, in times of disaster, vacant homeowners should put their homes on the market." Some areas, including San Marino, Arcadia, and Temple City, require owners of unoccupied vacant homes to register and designate an emergency contact for the area for a fee.
Janice Lee, who has been working in real estate brokerage for 40 years in San Marino, stated that about 10% of the transactions she brokered were sold to foreign buyers. She added, "While I want to trust foreign buyers rather than suspect them, I also do not wish for another vacant home to arise in our community."