That’s pretty common actually. I’ve been in HOA’s around the country and typically see 80% owner-occupants and 20% rentals (or 70/30). They have waitlists for owners intending to rent out their properties though HOAs do make allowances for hardship (e.g. loss of income, deaths, etc.). And once you receive permission, I believe you are given a specific time to rent it out, like within 6 months or something like that. Otherwise it goes to the next person in line. All about maintaining property values, quality of life, etc.
Someone can say, well, what can the HOA do if I rent it out? One community I was in in the southeast levied a fine of $100/day and placed a lien on that property (middle class home). Things got resolved quickly…
In our Generational Wealth Gap series, we answer whether housing is more expensive for younger people today. This is the last report of our three-part series, which focuses on housing affordability in 1970 vs. 2022 in some of the largest cities in the United States.
Our key findings include:
Housing has become 3.73 times more expensive for an average Los Angeles family since 1970.
The top five cities where housing affordability worsened are all located in California – Los Angeles, Oakland, Anaheim, Long Beach, and San Jose. The state as a whole experienced a 192% decrease in housing affordability.
Homes are 3.25 times more unaffordable for average families in Miami . The nearby Hialeah has seen similar trends, with housing being 3.49x more unattainable since 1970.
The booming technology industry contributed to the worsening housing affordability. 14 of the 20 top cities in the report are major cities with tech talent.
To do this, we pulled statistics from the most recent 2022 U.S. Census and compared those to the same numbers from the 1970 Census, when Baby Boomers were beginning to purchase starter homes. Read on to see the results.
If you’re living in a condo or townhome HOA, there’s a non karen reason for that. Namely trying to make sure home prices don’t drop due to too many rentals making the buildings unwarrantable.
IMHO, in most HOA’s the biggest violators are the folks to are on the board.
Must park 1 out of my 4 cars in the Garage? Got on the Board - Got a Waiver
Must keep my 3 cars registered? Got on the Board - Got a waiver
Must not park my business work truck on the street - Got on the Board, got 3 years waiver - Got kicked off the board - Went to the reporters about how unfair it is as the HOA allowed it for 3 years..lol
It’s even more “non-Karen” than that. There’s a VERY good reason for it.
The reason for these rules is that Fannie/Freddie will not purchase a mortgage in developments that exceed some percentage(the actual percentage varies depending on property type) of units that are rentals. Since 99%+ of mortgages are eventually sold to Fannie/Freddie that also means that no bank will underwrite a mortgage in those developments either because they’d be unable to sell the mortgage to Fannie/Freddie in the future. If banks are unwilling to write mortgages in your development then it’s basically impossible for any current owner to sell their house.
The “Housing is Unaffordable” phenomenon is generally a coastal metro thing. People - even young ones - in St Louis or Cleveland have no problem buying houses.
Cue “but who wants to live in Cleveland” snarky replies. And yeah that’s the tradeoff. Live in Cleveland, own a home, build wealth and retire comfortably. Or live in LA, rent your whole life, never really having any financial security.
Life’s all about choices.
And does that study take into account type and size of home? The typical home in 1970 was a 1500 sq 3/2. The type of home that today would be considered entry level. A true comparison of 1970 and today is $/sq ft not median home price then vs now. As well as an apples to apples comparison of bathrooms, garage size, and so on. Do all that and houses aren’t THAT much more expensive today vs 1970.
Heh. Never been. I have heard some of the 'burbs are very nice and very cheap though. Same with Detroit. You can crazy nice houses in upscale areas for under $1M. Same houses that would go for at least 3X times that on the coasts.
Right. And that 40% chooses to live where they live. Which is my point. You can choose to live on the coast and rent or live in flyover country and own.
Google says 37,271 USD median household.
$100K median house price with $37K median income. That’s. pretty damn low ratio, under 3.
Compare that to LA where it’s around 10 or maybe even higher. So yes relatively speaking, even with income discrepancies, Cleveland is pretty cheap to live in.
Which reporters are we talking about? and how difficult is it to get on the board?
Can we know what these percentages are?
Yeah. I was looking at the details, the HOA has a $300 fine for not informing them of any changes in the occupancy of the place. They also sent me a ballot today asking for a $50 increase in HOA fees for better management. I think I would need to attend a few meetings to understand what these guys are trying to do.
Can we do this for a not so major city. Like what about Kansas City, e.g. ? LA county’s population has grown 50% since then.
