In 2021, investors purchased a record $64 billion worth of homes - the most in at least two decades, according to Redfin. Investors have been purchasing up a storm - and keeping potential homebuyers outĪs investors flock to the real estate market, they're pricing out locals and disrupting housing ecosystems. Suburban neighborhoods adopting these strategies to keep out powerful investors is not only novel, as the Wall Street Journal reported - it's flipping the playbook. The strategies adopted by suburban homeowner associations for single-family homes are already common in apartment communities in metropolitan areas like New York City's, in a way that can often be exclusionary to Black and brown homebuyers. And some analyses show that these companies are mainly overtaking communities of color. According to one recent analysis, investors bought a third of all US homes for sale in January, the highest portion in at least a decade. He said that some of the homes in the subdivision owned by investors in his Walkertown neighborhood now look shabbier, and that their owners are difficult to contact to resolve problems.Ĭorporate landlords have been overtaking US suburbs in recent years, pricing out many first-time homebuyers - who are usually younger - and fueling the difficulties Gen Z and millennials have had seeking homeownership. "They're coming in, and they're basically bullying people out with cash offers," Chase Berrier, president of the Whitehall Village Master Homeowners Association in North Carolina, told The Wall Street Journal. Both tactics stymie the attempts of large landlords to rent the spaces. To combat these purchases, homeowners will often place caps on the number of homes that can be rented in a particular neighborhood, or require that potential tenants be vetted by an association board. Some of these HOAs believe that rental investors buying homes in their neighborhoods has made it difficult for local families to buy, the groups told the Wall Street Journal, and led to a decline in home maintenance, which has made their neighborhoods less desirable.
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