New neighborhood is becoming increasingly more filled with rentals. Should I take this as a sign and sell?

We have been in our new build community for a little over a year now. When we bought, the HOA governing documents stated a rental cap of 20%.

After we purchased, the HOA quickly changed that rule and removed all rental caps. Because it was a new build community, the builder was heading the HOA and could make this change without community vote.

As time has gone on, it’s becoming more and more clear that rentals within the community continue to go up. As of today, there’s 5 units available as leases have expired. It feels like there are more rentals than ownership.

I’ve always read that rentals tank your value and lead to the community going to crap. I’m worried that will be the case here. Some neighbors and I have already observed 2 evictions in nearby rentals, trashy behavior by some tenants, and other things that are causing some panic.

To be clear, there’s also tons of good renters in here, too. But I’ve noticed that all it really takes is 1-2 landlords who don’t have strong screening processes or don’t really give a crap to tank a neighborhood.

These homes are in a nice area and some properties in the neighborhood have recently sold at a price that would yield us about $30K in equity. We really don’t want to move and wanted to be here at least 5 years to gain some stability in housing for once. We’ve been apartment hoppers for years before this and were really looking forward to some continuity.

Despite that, I’m worried about the trend I’m seeing and the general sentiment is to move on when this is happening. I just wanted everybody else’s thought. Thanks.