Homeowner Groups Seek to Stop Investors From Buying Houses to Rent - WSJ

It's remarkable that more than 1-in-5 home sales is an investor purchase, according to housing research firm CoreLogic in December. As this WSJ article (click link) states, HOAs are rewriting home ownership rulebooks to thwart investor purchases. As a realtor and investment property owner, I can understand the pressure on different sides of this discussion.



What seems to be pushing this to a boiling point is the entry in recent years of large-scale landlords, Wall Street-backed institutions, and iBuyers. A Money magazine article sited 57% of investor transactions originate today from these sources.

The HOA response is tricky because not all homeowners are uniform and will want to maximize their asset when it comes time to sell. Is it reasonable to:

  • Place a cap on the number of homes that can be rented in a particular neighborhood?
  • Require new buyers to live in a home or leave it vacant for a certain number of months before they can rent it out?

 

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