Newark is about to get far less friendly to institutional investors playing in the single-family rental market. But the issue is far bigger than one city in New Jersey and the ultimate result could be, if not killing, then maiming the SFR goose that lays the golden rent checks.
"In cities and even suburbs across America, institutional investors are eroding the American dream of homeownership as they convert owner-occupied homes into corporately owned rental units," according to a statement from Newark Mayor Baraka. "In Newark, where we have worked hard for years to expand homeownership, we will do everything possible to combat this dangerous trend.
Setting off Newark's response was a report from the Rutgers Center on Law, Inequality and Metropolitan Equity that noted "almost half of all residential purchases of 1-4 unit parcels were bought by limited liability entity landlords."
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