San Diego Renters Accuse Blackstone of Raising Rents and Neglecting Tenants

A coalition of San Diego renters is taking a stand against private equity firm Blackstone, alleging that the company has raised rents and neglected tenants since acquiring thousands of local rental units. The San Diego County Board of Supervisors will address this issue in a proposal set to be discussed on Tuesday.

Vice Chair Terra Lawson-Remer, along with activists, rallied in front of the Blackstone-owned Bay Apartments in Pacific Beach to bring attention to the alleged illegal practices of firms like Blackstone. Lawson-Remer drafted the proposal, aiming to combat the surge in local rents that have increased by 200% since Blackstone’s acquisition.

“We know that the Blackstones of the world are deliberately fixing prices and colluding to drive up rents. It’s illegal, and it has to stop,” Lawson-Remer stated during the rally.

The proposed plan includes studying the impact of commercial ownership of residential properties on local rent prices and potentially implementing new ordinances to address the issue. Lawson-Remer also mentioned the possibility of bringing a lawsuit against Blackstone for their alleged illegal behavior.

In response, Blackstone denied the allegations, stating that the claims are based on cherry-picked data and not factual. The company highlighted that they have invested $100 million in improvements and completed over 44,000 repairs in their San Diego properties, with rents averaging 20% below the market average.

Renters shared stories of harassment and unaddressed maintenance requests since Blackstone took over their properties. Celeste Johnson, a tenant from El Cajon, spoke about her struggles with getting maintenance issues resolved after the ownership change.

The Board of Supervisors will discuss the proposal at their meeting on Tuesday morning. The outcome of this discussion could have significant implications for renters in San Diego affected by the practices of large investment firms like Blackstone.