The Woodlands Edition | July 2022

2022 REAL ESTATE EDITION

COMPARING COSTS In all but two ZIP codes in The Woodlands area, the median price of investor- owned homes was lower than the 2020 median home value.

BIG BUSINESS Texas led the nation in institutional buying in 2021 and saw the second-largest percent increase in properties bought by institutional buyers from 2020-21, climbing 4.6 percentage points .

result of high interest rates as well as factors such as limited availability at apartment complexes. Although the median household income in The Woodlands was $126,087 as of the 2020 ACS ve-year estimates—twice the statewide median of $63,826— leasing remains popular because the population includes many nonper- manent residents, he said. “The rental market in The Wood- lands houses a lot of expats, ... and most have a budget given by the company for their rental while in the area,” Said said. Although institutional purchases dropped among national market shares from 2015-20 from 15.4% to 11.8%, they rose to 13.1% in 2021 during the real estate surge follow- ing the onset of the coronavirus pan- demic, according to NAR data. Wauhob said in a June 14 inter- view the HAR is beginning to upscale its eort to track institutional buying and build-to-rent options. She said the organization is looking at home ownership levels and home values, especially as increased prices aect appraisals and property taxes. Charlie Kriegel, the owner of property advisers WinHill Advi- sors-Kirby in Houston, said national trends could see at least 40% of sin- gle-family homes under $400,000 owned by rms in the next three to ve years, which would change the homebuying dynamic. “There’s no negotiating with an institutional buyer,” Krie- gel said. “Anyone who’s buying for under $400,000 will need to understand that.”

MEDIAN HOUSE VALUE*

MEDIAN PRICE PURCHASED BY INVESTORS**

77380 77381 77382 77384 77385 77386 77389

$228,925 $305,730 $390,730 $319,000 $266,870 $247,130 $238,103

$268,900 $361,200 $426,000 $315,700 $234,100 $250,100 $310,300

*AS OF 2020 U.S. CENSUS AMERICAN COMMUNITY SURVEY 5YEAR ESTIMATES **AS OF JUNE

KYLEE HAUETERCOMMUNITY IMPACT NEWSPAPER

SOURCES: 2020 U.S. CENSUS AMERICAN COMMUNITY SURVEY 5YEAR ESTIMATES, KINDER INSTITUTE, MONTGOMERY CENTRAL APPRAISAL DISTRICTCOMMUNITY IMPACT NEWSPAPER

Neighborhoods along the Grand Parkway, such as Fox Run, are the site of many investment rm-owned houses.

lower price points, according to Said. In The Woodlands area, the ZIP codes with the largest number of institutional investor-owned homes are 77385 and 77386, which are also the ZIP codes with the lowest median home prices as of the U.S. Census Bureau 2020 American Com- munity Survey ve-year estimates at $234,100 and $250,100, respectively. However, some rentals do occur in The Woodlands ZIP codes, such as 77381, where there are 39 homes owned by ve of the largest inves- tors in the area as of June. “When it comes to The Wood- lands, it will be the front sections that are more investment/lease properties,” Said said. “Those are usually properties that are priced below the average price point in the area. This would be parts of Grogan’s Mill and Panther Creek but then also part of the back by May Valley and Creekside Park.” NAR data also found institutional buyers oered about the same price as other buyers but were willing to pay cash or oer other services that

other buyers did not, such as home appraisals and inspections. However, Said noted those cash oers did carry some disadvantages. “These oers are usually strong and in cash but bring some issues for the sellers during the transaction as they carry hefty repair requests,” he said. Cash oers also aect rst-time buyers and make a challenging mar- ket even more dicult to get into, according to Said. “This pushes the rst-time buyers from our area outside in order to get their rst home,” he said. Despite the challenges of get- ting into the market, Montgomery County is increasingly drawing buy- ers of all kinds as part of a larger trend away from metropolitan cen- ters, Ferester said. “I do believe since COVID[-19] people are moving further away from cities,” Ferester said. Long-term impacts Said said it is likely leases will continue to grow in popularity as a

IN 2021,

13% of homes purchased in the U.S. were bought by investment rms. 28% of homes purchased in Texas were bought by investment rms. 29% of homes purchased in Montgomery County were bought by investment rms.

13%

28%

29%

59,000 houses were built to rent nationwide in 2021, the largest amount since 2003.

$284,602 is the average value of homes owned by institutional investors in The Woodlands area.

389 homes are owned by ve major institutional investors in 77386—the most of any The Woodlands-area ZIP code. 62.9% of households are renter occupied in the 77380 ZIP code, the highest percentage of renter households in The Woodlands area. SOURCES: NATIONAL ASSOCIATION OF REALTORS, HARRIS COUNTY APPRAISAL DISTRICT, KINDER INSTITUTE FOR URBAN RESEARCH AT RICE UNIVERSITYCOMMUNITY IMPACT NEWSPAPER

For more information, visit communityimpact.com .

FREE RECHARGEABLE UPGRADE WITH THE PURCHASE OF HEARING AIDS Call today to schedule a consultation and hearing screening.

Leading the way to Better Hearing Full Service Hearing Aid & Hearing Protection Provider

MAGNOLIA 32731 Egypt Lane, Ste. 701

THE WOODLANDS 19221 I-45 South Ste. 140 Shenandoah, TX 77385 (281) 363-2847

TOMBALL 425 Holderrieth Blvd, Ste. 116 Tomball, TX 77375 (281) 351-1955

Magnolia, TX 77354 (281) 789-4874

Accepts most insurance Visit us at www.clarkhearing.com

THE WOODLANDS EDITION • JULY 2022