2022 REAL ESTATE EDITION
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 .
NRHC companies were building homes for rent, compared to 26% in 2022. “People are familiar with the fact that there’s a supply crisis when it comes to purchasing a home. But I think people are less familiar with the fact that there’s just as severe a supply crisis in the rental housing market,” Howard said. HAR data showed new single- family rental listings increased 28.6% from May 2021 to May 2022. A 2022 study conducted by researchers at the University of Cal- ifornia at Berkeley found American Homes 4 Rent and the Canada-based Tricon Residential had invested mil- lions of dollars as of the fourth quarter of 2021 in developing homes for rent. Locally, CDC Houston began site preparation for Phase 1 of City Place’s new 400-acre residential project with DMB Development in May, which o§- cials said will include single-family rental options. “Given the high demand for rental in the Houston region, we decided to integrate single-family rental into the rst phase of our residential proj- ect,” CDC Houston Project Manager
Andrew Giammalva said. “We want to give [transient] employees an oppor- tunity to live in a home without hav- ing to purchase a home.” Just north of Spring in Tomball, Tricon Residential and HHS Residential broke ground in December on Willow Creek Manors—a new single-family rental home community slated to open 14 units on FM 2920 later this year. Invitation Homes and American Homes 4 Rent did not respond to a request for comment, and FirstKey Homes referred Community Impact Newspaper to the NRHC for comment. Long-term impacts Institutional buying trends emerged as the housing industry is facing record lows in inventory. In May, the HAR reported the Houston- area market had 1.6 months of supply—the highest mark since October 2021 yet below the six- month mark the NAR considers a “balanced” market. Jennifer Wauhob, chair of the board for the HAR, said in a June 15 news release that conditions “appeared to
$238,038 is the average market value of homes owned by institutional investors in the Spring and Klein area .
28% of homes purchased in Texas were bought by investment rms. 38% of homes purchased in Harris County were bought by investment rms.
479 homes are owned by these ve major institutional investors in 77373 —the most of any Spring- and Klein-area ZIP code. SOURCES: NATIONAL ASSOCIATION OF REALTORS, HARRIS COUNTY APPRAISAL DISTRICT, KINDER INSTITUTE FOR URBAN RESEARCH AT RICE UNIVERSITYCOMMUNITY IMPACT NEWSPAPER 38%
rising to 13.1% in 2021. “Build-to-rent is the fastest-growing segment of real estate in America—it’s not going anywhere,” he said. Kriegel said national trends could see at least 40% of single-family homes owned by rms, which would change the homebuying dynamic. “There’s no negotiating with an institutional buyer,” he said. “Anyone who’s buying for under $400,000 will need to understand that.”
be calming.” “New listings increased 9% in May, helping boost inventory to its high- est level of the year, so hopefully we can begin to see signs of normalcy in terms of supply, demand and pricing in the months ahead,” Wauhob said. Charlie Kriegel, who partners with rms for the Houston-based Win- hill Advisors-Kirby, said although investment rms were pivoting toward build-to-rent communities, institutional home purchases would “never go away.” NAR data showed from 2015-20, national market shares dropped from 15.4% to 11.8% before
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*Purchase a select Perry home in Houston and choose one nancing incentive. The interest rate buy down and locked in interest rate long term offers are subject to quali cations and restrictions apply. The closing costs offer of up to $10,000 consists of Perry Homes paying up to $10,000 in closing costs (including pre-paid items). The amount that Perry Homes can pay for closing costs will be subject to and determined by federal regulations, the amount of the mortgage, type of the mortgage loan selected by purchaser and other requirements to a combined maximum of 3% of the contract sales price. Lower sales prices may not receive the full $10,000. The closings costs, interest rate buy down and locked in interest rate offers are available if purchaser quali es and obtains nancing through Crestmark Mortgage Company or Parkstone Mortgage, LLC, as applicable. Purchasers nancing their home purchase with Crestmark or Parkstone will receive the full bene t of this offer from Perry Homes. Additional details are available from these lenders. The promotional offer is available on select homes in Houston when the purchaser presents this yer upon initial visit to a Perry Homes Model Home and signs the initial earnest money contract between 07/01/2022 – 07/31/2022. One promotional offer per contract. Purchaser may not combine this offer with other offers published by Perry Homes and/or Britton Homes. Offers, plans, prices, and availability are subject to change without notice. All trademarks, product names, brands and logos remain property of their respective holders. Their use in no way indicates any relationship, endorsement, or sponsorship between Perry Homes and the holders of said trademarks. See Sales Professional for details. (06/22)
SPRING KLEIN EDITION • JULY 2022
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