- Aggressive Rent Hikes: Blackstone increased rents by an average of 38% in San Diego properties, significantly higher than the citywide average of 20%, raising concerns about its profit-driven approach amid a housing crisis.
- Potential Rent Fixing: Blackstone allegedly used RealPage’s YieldStar software, currently under investigation for rent-fixing, to coordinate rent increases that may have negatively impacted millions of renters across the US.
- Eviction Concerns: After ending its eviction moratorium in 2022, Blackstone reportedly filed hundreds of eviction notices, potentially to capitalize on higher rent opportunities for new tenants, further aggravating the affordable housing crisis.
Blackstone, the world’s largest alternative asset manager with over $1 trillion in assets, has been under scrutiny for its role in exacerbating California’s housing crisis. A recent report by the Private Equity Stakeholder Project and the Alliance of Californians for Community Empowerment has highlighted the company’s aggressive real estate acquisitions in regions like San Diego, where housing shortages are severe. As the largest corporate landlord in the US, Blackstone has expanded its portfolio to 350,000 rental units while allegedly opposing rent control measures and significantly increasing rent prices to boost its profits.
The report also pointed to Blackstone’s potential collaboration with RealPage, a real estate software company currently under investigation by the US Department of Justice. RealPage’s YieldStar software is accused of enabling landlords and property managers to coordinate rent increases, effectively driving up prices beyond market expectations. The connection between Blackstone and RealPage raises concerns about possible rent-fixing practices that could have impacted millions of renters nationwide.
In San Diego, Blackstone’s rent hikes have been particularly steep. Since purchasing 66 rental properties in 2021, the company has reportedly increased rents by an average of 38%, compared to a citywide increase of just 20%. Some buildings even saw rent hikes of over 70%. Despite these figures, Blackstone has defended its actions, claiming that rents in its properties remain 20% below the local market average. Additionally, the company states it has invested $100 million to improve living conditions in its San Diego communities.
However, Blackstone’s practices extend beyond rent increases. In 2022, the company ended its pandemic-era moratorium on evictions for non-payment, leading to hundreds of eviction filings. The report suggests that Blackstone may be motivated to evict tenants as part of a strategy to raise rents even higher. Under California law, rent hikes are capped at 10% for current tenants, but no such restrictions apply to new tenants, creating an incentive for landlords to replace tenants who can’t keep up with rising costs.
The report calls for reforms to address Blackstone’s impact on the housing market. Recommendations include capping rent increases at 3% annually across all properties, providing relocation assistance to displaced tenants, and offering flexible payment plans to those behind on rent. The report also urges Blackstone to support rent control measures rather than opposing them, emphasizing the need for a more equitable approach to housing as the company continues to profit from the ongoing affordability crisis.
