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According to a new report by the National Association of Realtors, Texas has the highest percentage of homes sold by institutional buyers in 2021 – more than double the US average.
Institutional buyers include businesses and corporations with deeper pockets than individuals who buy a house or other household. Institutional buyers bought 13% of the houses in the country; Texas bought 28%.
In Tarrant County, she bought 52% of the houses; in Dallas County 43% of households – a trend so alarming that Congressman Chip Roy, R-Texas, has called for a federal investigation.
They also bought nearly a third to nearly half of the other North Texas counties of Johnson (48%), Rockwall (45%), Denton (39%), and Kaufman (38%). Further south, in Texas’ largest district, Harris, they bought 39% of the homes.
Businesses and corporations that buy homes continue because “home sales and rental markets continue to suffer from a massive shortage of supply for sale and their units,” the report said.
“In March, the supply of existing houses on the market corresponded to only two months of supply, which is well below the required level of six months.”
At the same time, the median home sales prices continue to grow by 15% year on year. At the same time, the demand for the lease of many family properties grew by 11% per year until March.
Rents from family houses increased by 13% year-on-year in February. This is an increase from 11.8% in 2020 and 5.8% in 2000, the report said.
The report also found that investors are targeting areas with a high rate of black houses, areas with high rents, where many millennials lived, and where housing prices have risen sharply.
The report found that more than a quarter of U.S. districts (28%) had a share of institutional buyers above the national average by 2021, with Lincoln County, Mississippi, with the largest share of institutional buyers at 67%.
After Texas, Georgia has the second largest number of home purchases by institutional investors with 19%, followed by 18% in Oklahoma and Alabama and 17% in Mississippi.
The countries with the lowest percentage of homes purchased by institutional investors are Massachusetts and New Mexico (both 7%), Maine (6%), New Hampshire (4%), and Alaska (2%). Vermont is the only state where institutional investors do not buy homes.
Texas also has the highest median home price ratio between family and institutional buyers of all buyers, the report said.
Institutional investors pay 1.7 times more on average than individual home buyers at medium prices.
In contrast, the national average selling price for institutional buyers is 26% lower than the national average price, the report said.
Reference Source: The Centre Sqaure
