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100 100 GOVERNMENT INVESTMENT PROPERTY PRESERVATION SERVICING TECH THE CHANGING ROLE OF SINGLE- FAMILY RENTAL After many single-family homes went into foreclosure after 2008, investors, instead of reselling, turned these homes into rentals. A new study from Cornell authored by Suzanne Lanyi Charles, assistant professor of city and regional planning, identified how these rental trends impact housing, from more unaffordable housing and household instability to increased rents and evictions, depressed house prices, and deferred maintenance. "Single-family rental housing is an increasingly prevalent form of housing tenure in U.S. suburban neighborhoods, representing a paradigm shift in how households gain access to a suburban single-family home," Charles wrote. Charles notes that in an attempt to stabilize neighborhoods hit hard in 2008, foreclosed single-family houses were sold off in bulk to large corporations. Increases in suburban single-family rental housing may provide households access to neighborhoods that are otherwise off-limits to renters, Charles said, but the reverse is also true. Charles notes that while policymakers including Democratic presidential candidate Elizabeth Warren have proposed legislation limiting large-scale institutional investment in single-family rental housing. Warren noted that, as President, she would create a national public database of information about large corporate landlords, including information like corporate landlords' median rent, the number and percentage of tenants they evicted, building code violations, the most recent standard lease agreement used, and the identity of any individuals with an ownership interest of 25% or more, either directly or indirectly, in large landlords' corporations, LLCs, or similar legal entities. According to Charles, while Warren's plan is more "broad brush," more focused changes may be more impactful. "Single-family rental housing in some neighborhoods may afford renters access to the opportunity that some neighborhoods can provide, while … in others [it] may have negative effects on households and neighborhoods," Charles said. "us, a highly tailored policy approach to single-family rental housing is warranted." WHERE INVESTORS SHOULD SHOW CAUTION If you're eyeing an area for investment, consider that some cities have been seeing cooling home prices outside of the norm. Business Insider, using data from Zillow, found the 13 cities where investors may want to hold off investing in for the next decade. Many of the cities on Business Insider's list are in historically high-priced areas in New York and California. Speaking to Business Insider, Beatrice de Jong of Opendoor stated that many West Coast markets have seen their homes lose value quickly following the tech boom. is includes the tech company hub Greater San Antonio, Mountain View, California, where the current home value of $1,224,900 is predicted to drop 5.83% year- over-year. "Seattle, Palo Alto, and Mountain View are big tech hubs," de Jong says. "Most of those cities have a lot of new jobs, high-paying jobs, bringing people up to the area. at really created a spike in real estate prices." Similar price drops can be expected in other high-priced areas including New York City, such as in the East Village, where the median home value of $1,247,400 is expected to drop 5.83%. However, in New York, like many high- priced areas, home prices are volatile. "New York is so hyper-local, even just to the neighborhood in Manhattan," de Jong says. "Real estate is even affected by something like a subway line being under construction because that affects people's daily commutes." Taking the top spot on Business Insider's list is North College Park, Seattle. A tech city, the area's median home value of $599,100 is expected to drop by 6.98% year-over-year, reflecting Seattle's overall home price cooling. Zillow data shows that the median value in this city is down from June 2018's high of $750,000 to $700,000 this past September. ese home price shifts may scare off investors, but de Jong notes that there is no need to panic. "e real estate market is always cyclical," de Jong says. "It's hyper-local but it's also cyclical."