Atlanta has seen a rise in investor-owned properties over the last two years. Some investors purchase the homes above asking price before the home is even listed on the open market. With a booming economy and major corporations increasingly locating operations in Atlanta, Mayor Andre Dickens is looking for ways that the government can put restrictions on property investors contributing to a surge in the region’s home prices.
Inspired by the Community Reinvestment Act, an act that requires the FED and other federal banking regulators to encourage financial institutions to help meet the credit needs of the communities in which they do business, Dickens wants to protect homebuyers from being pushed out by “iBuyers” like Zillow and other tech-powered players that use algorithms to purchase and flip homes. There has been a rise of sales to landlords that are backed by Wall Street as well in Atlanta. Dickens is looking for corporations that open or expand operations in Atlanta to do so with a commitment to hire 30% of their workforce from local residents. He points to the recent opening of a Microsoft facility in Midtown, Atlanta, which led to the quick sale of homes on the market in that area to investors.