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‘Institutional buyers’ bought 28% of Texas homes in 2021

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Texas had the highest proportion of homes sold to institutional investors such as businesses and corporations in 2021 in all states across the country. According to a report from the National Association of Real Estate Agents.. Last year, more than a quarter (28%) of Lone Star homes were sold to these buyers, more than double the US average (13.2%).

The report shows that the share of homes sold to institutional investors has increased from 11.8% in 2020. This percentage has more than doubled in the last 20 years, up from 5.8% in 2000.

According to the report, more than a quarter (28%) of US counties had a higher institutional share than the 2021 national average. The county with the largest share of institutional buyers is Lincoln County, Mississippi, where 67% of homes were sold to these buyers last year. Of the 21 counties with the largest institutionally purchased homes, 10 counties, including Tarrant (52%), Rockwall (45%), Dallas (43%), Travis (41%) and Harris. It is reported to have been in Texas. County (39%).

According to the NAR, Texas’ share of homes purchased by institutional investors is 9 percent higher than its next-highest state, Georgia (19 percent). Oklahoma (18%), Alabama (18%) and Mississippi (17%) conclude the top five states with the highest share of homes purchased by these buyers. The states with the lowest percentage of institutionally purchased homes are Vermont (0%), Alaska (2%), New Hampshire (4%), Maine (6%), Massachusetts and New Mexico (both 7%). It is included.

Texas also reported that the median ratio of single-family home purchase prices to all buyers was the highest at 1.7. That is, Texas homebuyers paid an average of 1.7 times the state average home price of the homes they bought. Nationally, the median selling price of institutional investors was 26% lower than the median of the state, according to the report.

According to the report, nearly the same number of institutional investors offered significantly more or significantly less than other homebuyers. About one-fifth (21%) of offers were at least 10% lower than other offers, and 25% of institutional offers were at least 10% higher than other offers. More than half of the sellers sold their homes to institutional investors who offered cash or “as is” sales (56%).

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