Following the June 2 primary elections, California’s real estate industry is recalibrating its political spending as fewer candidates remain in key races. In Los Angeles, Mayor Karen Bass has secured significant financial support from building trade groups, while gubernatorial frontrunner Xavier Becerra has attracted millions in industry-linked donations. These funding shifts occur as candidates face intense scrutiny over their strategies to address the state’s ongoing housing crisis.
How real estate money is flowing in the Los Angeles mayoral race
Incumbent Mayor Karen Bass has consolidated support from construction and building trade organizations as she heads toward the November runoff. According to filings from the Los Angeles City Ethics Commission, Bass received $200,000 from the State Building and Construction Trades Council of California PAC and $50,000 from the Los Angeles County Building and Construction Trades Council PAC. Additional support came from industry leaders, including Kenneth Lombard of Bridge Housing and Sherri Franklin of Urban Design Center.
Conversely, challenger Nithya Raman’s industry backing remains limited. While Raman defeated Spencer Pratt—who was backed by developers like Geoff Palmer and Westside Estate Agency’s Kurt Rappaport—her own donor list relies more heavily on urban planning outfits and housing advocacy groups. Raman did secure late May donations from a Keller Williams agent and Benji Power of Procida Development Group.
Why the homeless initiative remains a point of contention
The financial backing for Bass comes amid public criticism of her administration’s handling of homelessness. According to data from LAist, more than one-third of units across 14 master-leased properties remained vacant as of May. Despite these vacancies, the Los Angeles Homeless Services Authority continues to pay $880,000 per month in taxpayer funds to cover rents.
The Bass campaign has signaled a combative approach to the upcoming runoff. On June 8, spokesperson Alex Stack criticized Raman’s record, stating the campaign looks forward to a contest against an opponent who “allows encampments near schools and fights against hiring more cops.”
How the gubernatorial race is shaping up
Gubernatorial candidate Xavier Becerra is seeing increased traction with real estate interests. Records from the California Fair Political Practices Commission show Becerra received nearly $2.8 million from the California Real Estate Independent Expenditure Committee – California Association of Realtors. Further campaign finance data from the California Secretary of State reveals additional support, including $61,000 from Meruelo Group executives and $39,200 from Airbnb.
In contrast, challenger Steve Hilton has seen less recent movement in real estate donations. However, Hilton maintained support throughout the cycle from notable figures such as billionaire Geoff Palmer, Dave Dollinger of Dollinger Properties, and Frank Suryan Jr. of Lyon Living.
What could happen next in the housing policy debate
The November runoff is likely to be defined by divergent approaches to California’s housing shortage. Becerra has proposed declaring a state of emergency regarding housing and has pledged to hold local governments accountable for failing to meet production markers. Hilton’s platform focuses on deregulation, specifically advocating for the reduction of building codes and the capping of impact fees for developers. As the election nears, the ability of these candidates to maintain their respective donor bases may depend on their willingness to adopt policies that satisfy both housing advocates and industry stakeholders.
Worth a look