Across California, there seems to be an emerging trend of homeowners associations increasingly eyeing rental restrictions in the lingering wake of the housing bust, said Richard Monson, president of the California Association of Home owners Associations. But he added it still seems to be a relatively small number of the state’s roughly 47,000 HOAs representing over 4.8 million homes.
“Because there are many more foreclosures and short sales, the buyers of these units are more likely to be investors than for owner-occupancy,” Monson said. “That’s a greater number of renters.”
The residential real estate correction is having a big impact on Privatopia as this blog has detailed over the past four years. This is one of them. As more absentee investor owners purchase dwellings in HOAs, the question becomes are they homeowner associations or property owner associations? HOA rental restrictions are designed to keep the "home" in HOAs. But HOAs cannot control housing market forces. If the market prefers investor owned rental properties, failing to accommodate that preference could lower the value of properties within HOAs that restrict rentals since it would limit their marketability.