Palo Alto weighs sweeping limits on billionaire tech compounds

Palo Alto residents and city officials are moving to curb what they call the billionaire tech compounds that have reshaped large parts of the town, with a proposed ordinance that would limit long-running construction, curb vacancies, regulate private security and curb the consolidation of multiple homes by single owners.

A new proposal spearheaded by City Councilman Greer Stone would apply to owners who buy three or more homes within 500 feet, and would require detailed construction schedules for projects lasting more than 180 days. The measure would also prohibit leaving properties vacant for more than six months in a year and would tighten rules on private security, including the use of marked vehicles, city permits and identification on request. If enacted, enforcement would largely rely on neighbors who could sue noncompliant owners.

The push gained momentum after a string of high-profile cases involving some of the world’s wealthiest tech figures. In the Crescent Park neighborhood, Meta founder Mark Zuckerberg and his wife, Priscilla Chan, have assembled roughly 11 homes over more than a decade, investing more than $110 million and sometimes paying well above market value to acquire adjacent properties. The effort has included frequent construction, delivery trucks clogging streets and a security presence that has drawn complaints from nearby residents. The Zuckerbergs say their home improvements have been reviewed and approved by city agencies and that they strive to minimize disruption, though neighbors say the compounds have altered daily life in the area.

Nearby in Old Palo Alto, Larry Page — Google’s co-founder — has owned several homes through LLCs tied to his family office. Page’s properties have drawn scrutiny for the use of private staff and security, as well as complaints about traffic and activity on site. In 2021, one Page-associated residence was cited after a fire and concerns that it was being used for business purposes in a single-family zone. Neighbors described daily flows of staff and security, and a later demolition of the damaged home was followed by plans to rebuild two houses on the site.

Marissa Mayer, the former Yahoo chief executive, has also pursued aggressive redevelopment in Palo Alto, purchasing and demolishing several townhomes to clear space for a larger residence with a pool and a grand hall. Mayer is reportedly seeking approval to knock down a fourth property to build a 4,600-square-foot home with an elevator and a large basement. In 2013 she bought a mortuary on a nearby block for $11.2 million, exploring converting it into a private club before neighbors objected; the property has since been used for other permitted purposes under city rules.

Laurene Powell Jobs, the philanthropist and widow of Apple co-founder Steve Jobs, also owns multiple homes in Old Palo Alto and has faced questions about private security and access around her properties. A spokesperson for Powell Jobs declined to comment on the proposed ordinance. The Times described interactions between residents and a photographer near Powell Jobs’ main residence that highlighted tensions around security and access in the neighborhood.

Stone’s plan would apply to owners who buy three or more homes within 500 feet of each other, creating a de facto ownership corridor that critics say exacerbates housing inequities. The measure would require detailed schedule timelines for long projects, with a 180-day benchmark that would trigger strict reporting. After completing one major project, owners would face a three-year waiting period before starting another, and properties could not be left vacant for more than six months in a year. The proposal also tightens private-security rules, requiring clearly marked vehicles, proper city permits and identification when requested, and it would bar guards from harassing people on public sidewalks.

The city would rely on a combination of city enforcement and neighbor-led actions to police any breaches, a feature that critics say could prove ineffective against billionaire owners who can afford protracted legal battles. A neighbor quoted by the Times asked, “Who would sue Mark Zuckerberg?” highlighting skepticism about the strength of enforcement when wealth and influence are at stake. Still, Stone said the goal is to restore livability in a community where median home prices hover between $3.5 million and $4 million and long-term residents feel squeezed out.

The full City Council is expected to take up the proposal early next year, with Stone noting that it could take six months or longer to reach a final vote.

The debate reflects broader concerns about the impacts of ultra-affluent tech wealth on local housing markets and neighborhood character in one of America’s most expensive and desirable regions. Supporters argue the restrictions are necessary to preserve public streets, ensure safety, and maintain a semblance of normalcy for families who rely on the same roads, schools and services as the rest of the community. Opponents say the proposals amount to punitive measures against individuals who have contributed to the local tax base and created jobs, and they warn that the rules could prompt similar actions across other affluent enclaves.

The council’s decision could set a precedent for other cities grappling with similar dynamics as wealth from the tech sector intensifies housing pressures and shapes suburban life. Palo Alto’s example could reverberate through Silicon Valley, where a handful of high-profile properties have become flashpoints for debates about equity, community character and the responsibilities of the ultra-wealthy in a housing crisis that shows few signs of abating.