Residential communities in several states are adopting rental restrictions for new residents to slow the pace of investor purchases, a trend quickly generating controversy among rental home companies, The Washington Post reports. The share of single-family homes owned by investors is growing in majority-Black neighborhoods, and many first-time buyers are being priced out as a result. In some cases, homes are being rented to tenants who have not been properly screened, leading to increased reports of illegal drugs and gunfire.
Despite pushback from homeowners associations, rental firms argue that restrictions exacerbate an existing affordability crisis and open a doorway to housing discrimination. Though investor purchases are slowing, nearly 1 in 7 homes sold in the nation’s top metropolitan areas in 2021 were purchased by investors, the most in two decades.
Faced with this surge of corporate landlords, many homeowners associations have begun to fight back.
At the Reserve at Back Creek, a subdivision of 39 houses near UNC-Charlotte, neighbors last year adopted a rule requiring an owner to live in a house for a year before renting it out. No more than 18 percent of the houses can be approved for rental at any time.
Advertisement
Related Stories
Sales + Marketing Trends
Brand Loyalty and Why Builders Should Think Like a Hospitality Brand
Whether its offering that personal touch or incorporating experiences into amenity use, home builders have something to learn from the hospitality industry
Market Data + Trends
Hottest Markets for Rental Activity in February
Looking at February's rental activity, the West continued to be the most desirable region for apartment hunters for the second month in a row, with the South close behind
Build to Rent
Yes, Rents Are Cooling, But How Much Varies by Market
Excess supply has helped to slow rent increases in some markets, and rent growth is moderating across a wider range of markets than in previous years, but affordability concerns persist
