I have noticed that there are two new buildings in the New Eastside neighborhood that have passed rules to prevent new investors from renting out their units. One building is the Regatta, 420 E Waterside. The Regatta just passed a new rule that no new investors are allowed to rent out their units anymore. The other building very close to passing the same rule is 222 N Columbus Dr, the Park Millennium. The Park Millennium only needs one more vote from a unit owner to pass, that means they would have more than 75% of the owners who voted for no new investors. They would have a meeting on July 15th and after that, if the new rule is passed, new buyers would no longer be able to rent out their units.
The reason for these two buildings passing the rules are due to the renter ratio getting too high. The Park Millennium is around 53% and the Regatta is around 40%. Since the current financial regulation says that the renter ratio should be lower than 30%, that means for people who want to get a mortgage, they have to go to the private lenders only, then the interest rate might be higher or they need to put down more money for the down payment. This will limit lots of people who are interested in the building but could not afford to buy it.
After the new rule, the renter ratio should be going down, this will help the building price to stabilize or go up.
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