Homeowners Try to Block Investors From Scooping Up Properties to Rent Out

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Homeowners Try to Block Investors From Scooping Up Properties to Rent Out
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Investors bought more than one in five U.S. homes in December. Some homeowners and HOAs are pushing back.

May. 3, 2022Small groups of neighborhood volunteers are blocking companies from buying single-family homes, rewriting homeownership rulebooks to thwart investor purchases of suburban housing.

Some of these groups, called homeowner associations, or HOAs, believe that the rise in rental investors' home purchases has led to aSince the beginning of 2019, about 30% of the more than 1,000 amendments from HOAs in 21 counties in Florida, Arizona, North Carolina and Texas were leasing and usage restrictions, according to an analysis by real-estate technology company InspectHOA for WSJ.

Tactics include capping the number of homes that can be rented in a particular neighborhood or requiring rental tenants to be approved by the association board.In Walkertown, N.C., members of the Whitehall Village Master Homeowners Association are trying to require new buyers to live in a home or leave it vacant for six months before they can rent it out. This move, they believe, would effectively prevent investors from buying more houses.

“We don’t want a bunch of rentals. We paid money for houses to have families that are going to be there for years.”

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