Op-ed | The Real Estate Industry Continues to Use the Ellis Act to Destroy Affordable Housing in California

March 29, 2026 - 05:20

A decades-old state law is facing renewed scrutiny and activist fury as it continues to fuel the loss of rent-controlled apartments across California. The Ellis Act, passed in 1985, allows property owners to exit the rental business by evicting all tenants and removing units from the market. While intended to protect landlord rights, critics argue the real estate industry has systematically weaponized the statute.

The process often follows a familiar pattern: buildings are purchased, long-term tenants are evicted under the Ellis Act, and the properties are then renovated or redeveloped to be sold as high-priced condominiums or returned to the market at vastly inflated rents. This practice has eliminated tens of thousands of affordable housing units over the years, directly exacerbating the state's severe housing affordability crisis and contributing to rising homelessness.

Tenant advocacy groups and housing activists are now mobilizing a concerted push for legislative change. Their goal is to either repeal the Ellis Act entirely or implement significant reforms that would close loopholes and protect existing affordable stock. They argue that the current law prioritizes investor profits over community stability and basic housing security, calling for urgent action to stem the ongoing loss of homes for low- and middle-income residents. The fight highlights the deepening tension between property rights and the urgent need for housing preservation in a state grappling with a profound shortage of affordable places to live.