Neighborhood volunteers are blocking companies from buying single family homes 2022-04-21
Gulf Coast Real Estate Update
April 21st 2022
Homeowner groups seek to stop investors from buying houses to rent
Homeowners associations are rewriting rules as rental investors purchases surge. Small groups of neighborhood volunteers are blocking companies from buying single family homes rewriting homeownership rule books to thwart investor purchases of suburban housing. Homeowner associations spend much of their time enforcing rules related to things such as lawn care and parking, but they often have broad powers to regulate how homes are used. Some of these associations now believe that the rise in home purchases by rental investors has led to a decline in property maintenance and made their neighborhoods less desirable. Investors are also making it more difficult for local families to buy houses. These groups say homeowner tactics include placing a cap on the number of homes that can be rented in a particular neighborhood or requiring that rental tenants be approved by the association board. In most cases, associations need at least a two thirds majority to pass these measures.
Mortgage rates increased for the seventh consecutive week, as Treasury yields continued to rise. While springtime is typically the busiest homebuying season, the upswing in rates has caused some volatility in demand. It continues to be a seller’s market, but buyers who remain interested in purchasing a home may find that competition has moderately softened.
