Regulating private sector investment is the wrong way to address California’s housing affordability crisis

California's housing crisis stems from a severe supply shortage, worsened by restrictive zoning and costly building codes. Proposed laws limiting investor ownership of single-family homes, aimed at improving affordability, would likely reduce rental supply and worsen the problem. Investors own less than 1% of such homes, and the real issue is the state's failure to build enough housing. Policymakers should focus on reducing regulatory barriers to increase housing supply.