The city council’s move comes as the built-for-rent home market is facing the same supply headwinds as the overall housing market. COVID-19 dramatically slowed construction of new homes in 2020, tightening the available homes for purchase.
At the same time, fewer homeowners than usual have put their houses on the market, opting to stay put during the pandemic.
“This is very wrong,” Councilwoman Lakeisha Gantt said, adding that original builder came before the city seeking approval for the project several times.
The moratorium will be in place for six months, during which leaders will try to prohibit built-to-rent single-family housing projects in zoning laws.
The switch to rental homes is legal because the city did not prohibit it under earlier zoning guidelines, city leaders said.
“Our city attorney will try to figure out how we can design an ordinance to keep this from happening again,” Gantt said.
American Homes 4 Rent could not immediately be reached for comment.
The subdivision was approved for 75 houses about two years ago, but only about 35 homes have been constructed thus far.