One in two homes purchased in Tarrant County in 2021 was purchased by a business or corporation.
Tarrant County’s share of institutional buyers ranked third nationally among counties with populations over 50,000. Businesses and corporations accounted for 52% of home purchases in the county in 2021, according to a new report from the National Association of Realtors.
The report describes the characteristics of areas with an investor share above 30%. In these areas (including Tarrant County):
- The number of households has increased by an average of 11% over the past decade.
- Home prices have risen more than 40% over the past decade.
- Rents have increased by more than 30% on average over the past decade.
- Home sales have increased by about 70% on average over the past decade.
Of the 15 counties with the largest share of institutional home buyers, nine are in Texas: Tarrant, Rockwall, Midland, Dallas, Travis, Denton, Harris, Kaufman and Williamson.
In 2021, 28% of Texas homebuyers were businesses, the highest rate nationally, and it’s more than double the national average of 13%.
Sellers said they accepted offers from these types of buyers because they were offering money or buying the property “as is”.
According to a Realtor survey, among homes purchased by institutional buyers, 42% have been converted to single family rentals and 45% have been flipped and resold. It’s partly because 42% of homes sold to institutional buyers were flagged as needing repairs.