A Sore Spot in L.A.’s Housing Crisis: Foreign-Owned Homes Sitting Empty

San Marino, California—an affluent suburb of Los Angeles—immaculately maintained million-dollar homes sit vacant, their owners residing thousands of miles away in China. This phenomenon has persisted for years as international buyers, particularly from China, invested in U.S. real estate. However, since Beijing imposed stricter currency controls in 2018, foreign purchases have waned.


Now, with thousands displaced by the Palisades and Eaton fires searching for housing, the issue of vacant properties—once considered a minor aspect of the real estate market—has come under scrutiny.

"Why are there so many vacant homes when people are struggling to find housing?" asks Ashleigh Rader, a Pasadena real estate agent with Compass. She is currently assisting multiple clients who lost their homes in the fires and sees unoccupied properties as a lost opportunity to provide much-needed shelter.

Many vacant homes in Los Angeles County are owned domestically, often by individuals who inherited them or maintain them as secondary residences. However, foreign investors played a significant role in the region's housing market, particularly in the San Gabriel Valley, which became a prime location for international buyers due to its prestigious properties and strong immigrant communities.

According to the U.S. Census Bureau’s 2023 American Community Survey, 225,000 housing units—6.1% of the county’s total housing stock—were vacant. More than 33,000 of those were designated for "seasonal, recreational, or occasional use."

Despite the concerns, Los Angeles County has a lower vacancy rate than most other U.S. counties, says Shane Phillips, a housing researcher at UCLA's Lewis Center for Regional Policy Studies. However, for families displaced by the wildfires, seeing empty homes remain unused is frustrating.

Joan Nguyen, a 39-year-old mother of two, lost her Altadena home in the Eaton fire and has struggled to find stable housing. After multiple rental rejections—including one where a landlord demanded extra payments “under the table”—her family has been temporarily housed in a friend’s vacant property.

“This is the perfect time for owners of empty homes to step up and make their properties available,” Nguyen asserts. “If they’re sitting empty, why not help a family in need?”



Los Angeles County officials have attempted to address the issue of vacant homes for years, citing potential safety hazards and missed housing opportunities. In 2022, San Marino proposed a $10,000 tax on vacant properties, but the measure failed. Other cities in the region, including Arcadia and Temple City, require absentee homeowners to register their properties, pay fees, and designate local contacts.

Foreign investors have historically viewed Los Angeles real estate as a valuable asset, with buyers from China, Mexico, and South Korea leading the trend. Some purchase homes for vacation use, while others house their children during college years at institutions like Caltech. A few opt to rent out their properties, but many remain unoccupied for extended periods.

International real estate investment in Los Angeles County has slowed significantly. In 2024, only 4.6% of total home sales involved foreign buyers, compared to 10.6% in 2008, according to the California Association of Realtors (CAR). Rising home prices and tighter Chinese government restrictions on overseas financial transactions have contributed to the decline.

CAR estimates suggest that about 150,000 single-family homes in the region are foreign-owned, with around 27,000 categorized as investment properties rather than primary residences.

San Marino Council member Calvin Lo is advocating for unoccupied homes to be made available during crises like the recent wildfires.

Janice Lee, a local real estate agent with four decades of experience, notes that roughly 10% of her transactions have involved foreign buyers, some of whom assured her they planned to live in their purchased homes. However, the presence of so many vacant properties remains a concern.

“I want to believe them,” Lee says. “But we don’t need more empty homes in our community.”

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