Helter Shelter: How Blackstone Contributes to and Profits from California’s Broken Housing System

The report alleges that Blackstone, the largest landlord in the U.S., has exploited housing shortages to maximize returns. It highlights significant rent increases in San Diego, a shift toward increased evictions after 2022, and the use of investor capital to fight rent control initiatives in California. Additionally, the document examines Blackstone's use of RealPage's YieldStar software amid allegations of industry-wide price-fixing.

• Blackstone is the largest landlord in the United States, owning nearly 350,000 rental units. Since 2021, the company has expanded its portfolio by adding over 256,000 units through various acquisitions, including student housing, multi-family, and single-family rentals.
• In San Diego, California, Blackstone acquired 66 properties (5,800 units) in May 2021 and subsequently increased average rents by 38%, from $1,696 to $2,339 per month. This increase was nearly double the San Diego market average of 20% for the same period, with some buildings seeing hikes up to 79%.
• After ending a voluntary eviction moratorium in August 2022, Blackstone initiated a wave of evictions across the U.S. In California, the report argues Blackstone has a financial incentive to evict current tenants to bypass the Tenant Protection Act of 2019, which caps annual rent increases for existing tenants at 10% but does not limit charges for new tenants.
• Blackstone executives have explicitly stated to investors that the shortage of new housing construction provides 'pricing power' for rental assets. President Jon Gray noted that a decline in the new supply pipeline is 'positive for real estate over time.'
• Blackstone spent over $14 million in 2018 and 2020 to defeat rent control ballot initiatives in California. These funds were drawn from investor capital, including the University of California and California public employee pension funds, rather than corporate PACs or executives.
• Evidence suggests Blackstone uses RealPage's YieldStar software for revenue management and rent setting. This occurs while the U.S. Department of Justice and several state Attorneys General investigate RealPage for alleged illegal price-fixing and anti-competitive practices.

APA

Private Equity Stakeholder Project (2024). Helter Shelter: How Blackstone Contributes to and Profits from California’s Broken Housing System. https://pestakeholder.org/reports/helter-shelter-how-blackstone-contributes-to-and-profits-from-californias-broken-housing-system/

Chicago

Private Equity Stakeholder Project. Helter Shelter: How Blackstone Contributes to and Profits from California’s Broken Housing System. 2024. https://pestakeholder.org/reports/helter-shelter-how-blackstone-contributes-to-and-profits-from-californias-broken-housing-system/.

Wikipedia

{{cite report |author=Private Equity Stakeholder Project |title=Helter Shelter: How Blackstone Contributes to and Profits from California’s Broken Housing System |date=1 August 2024 |url=https://pestakeholder.org/reports/helter-shelter-how-blackstone-contributes-to-and-profits-from-californias-broken-housing-system/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{privateequitystakeholderproject2024helter, author = {{Private Equity Stakeholder Project}}, title = {{Helter Shelter: How Blackstone Contributes to and Profits from California’s Broken Housing System}}, institution = {Private Equity Stakeholder Project}, year = {2024}, month = aug, url = {https://pestakeholder.org/reports/helter-shelter-how-blackstone-contributes-to-and-profits-from-californias-broken-housing-system/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }