HOAs Work to Stop Investors From Buying Houses to Rent
The Wall Street Journal has an interesting piece (reposted on Realtor.com) about how small groups of neighborhood volunteers (HOA’s, etc.) are blocking companies from buying single-family homes. They say this is rewriting the proverbial homeownership rulebook in an effort to stop investor purchases of homes in suburban neighborhoods. Some of their tactics include include a cap on the number of rental homes in a particular neighborhood or requiring that all rental tenants be approved by the HOA board. Indeed…
Some housing analysts say that blocking investors from neighborhoods could end up hurting renters, who are often less wealthy than their homeowner counterparts or who struggle to find affordable housing. “There’s a pretty deep and pervasive social stigma against renters,” said Jenny Schuetz, a senior fellow at the Brookings Institution.
“They’re coming in, and they’re basically bullying people out with cash offers,” said Chase Berrier, the association’s president who is leading the effort. He said some of the homes in the subdivision owned by investors now look shabbier, and absentee owners are hard to contact to resolve problems.
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