I do not love the idea of the government invalidating private contracts like this.
HOA’s are a very good example of private contract rent seeking. You have to sign the contract to move into the house, and a lot of houses come with similar contracts. So the opportunity cost of not signing is Large.
And then the local HOA can enforce whatever petty tyranny it feels like.
In theory, this should lead to houses without HOA’s being more valuable, and so HOA’s being removed or at least not created. But for whatever reason, the housing market is too dysfunctional to do this.
HOA’s are a very good example of private contract rent seeking. You have to sign the contract to move into the house, and a lot of houses come with similar contracts. So the opportunity cost of not signing is Large.
And then the local HOA can enforce whatever petty tyranny it feels like.
In theory, this should lead to houses without HOA’s being more valuable, and so HOA’s being removed or at least not created. But for whatever reason, the housing market is too dysfunctional to do this.