NJ City Cracks Down on Banks Buying Houses, Then Renting Them Out

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NJ City Cracks Down on Banks Buying Houses, Then Renting Them Out
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A decade-long trend nationwide of investors buying houses has apparently reached its peak in Newark, where nearly half of all home sales in the past three years have been to companies that buy and then rent them out

The city's mayor is fighting back, trying to slow the growth in home sales to investors while encouraging middle class growth in his city.

Deborah Smith Gregory is one of those people fed up with companies trying to buy her home. She says that the solicitations come in the form of door knocks, mailers, and of course phone calls. Newark owns thousands of properties, according to Baraka. Those properties can be easy to spot, with signs plastered on abandoned, mostly foreclosed homes all around town. But selling to investors is not the answer, according to the city.

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