Unleashing the sweeping powers of the HOA.
Individual buyers often find themselves bidding against deep-pocketed investors, who now comprise a legitimately concerning 20% of all U.S. home sales. But in suburbs across the country, homeowner associations are establishing regulations that make it tricky for anyone other than traditional buyers to purchase single family homes.
One proposed rule requires any new buyers to live in a home for six months before renting it out; another requires co-op style, any new renters to be approved by the association. Facing those onerous conditions, institutional investors, iBuyers and corporate landlords may look for easier pickings elsewhere.
In response, investor reps have accused homeowners of anti-renter bias, which can’t be totally discounted. But there’s no doubt that cities and towns now have a strategy that may protect the inventory of single family homes — the metric that, at the moment, matters the most of all.
Source: The Wall Street Journal