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New neighbors Data from the Harris County Appraisal District and the Montgomery Central Appraisal
“These are not mom and pop buyers,” said Nadia Evangelou, the director of forecasting at the National Association of Realtors. “They look to buy properties and communities on a large scale and make pro t from them.” Texas leads the nation in institu- tional buying with 28% of single-fam- ily homes sold in 2021 purchased by institutional investors—more than double the national average of 13%, according to data from the NAR. Locally, NAR data showed 38% and 29% of single-family properties pur- chased in Harris and Montgomery counties in 2021, respectively, were bought by institutional buyers. Data from the Harris County Appraisal District and the Montgom- ery Central Appraisal District shows ve institutional investors and their subsidiaries owned 413 homes in the six ZIP codes that make up the Tom- ball and Magnolia area as of June. In order of the amount of homes invested, the rms are American Homes 4 Rent; FirstKey Homes, a subsidiary of Cerberus Capital; Tricon Residential; Progress Residential; and Invitation Homes. A NAR survey of national Realtors found 29% of their sellers preferred selling to institutional investors due to receiving cash o ers, while 18% sold because the investor was guaran- teed to buy. “I had an o er [from an invest- ment rm] for a $240,000 listing; they o ered $250,000. Before I even responded, they increased it to $262,000 the next morning, and that afternoon ... they increased it again to $275,000,” said Jane Hardcastle, a Magnolia-based Realtor and HAR member. “I hated it because I was hoping an individual would get it..
77354
87
1488
1774
249
77355
77362
28
District show institutional investors made signi cant purchases locally.
20
186
77447
KEY:
77375
Tomball ZIP codes
77377
30
Number of institutional investor-owned properties by ZIP code Magnolia, Pinehurst, and Hockley ZIP codes
62
99
290
249
N
The amount of homes that were newly built and leased in the same year increased over 286% from 2020-21 in Tomball ZIP codes.
Total 95 31
77447 13 0 3 0 14 30
77377 15 11 23 12 1 62
77375 32 17
77362 2 0
77355 9 3 9 1 6 28
77354 24 0
Five institutional investors with a national presence in the single-family real estate market have made purchases in the Tomball- Magnolia area with American Homes 4 Rent buying the largest share. Institutional investment
FirstKey Homes & Cerberus Capital*
Invitation Homes American Homes 4 Rent Progress Residential Tricon Residential
121 80 86 413
66 46 25 186
5 5 8 20
15 16 32 87
Total
SOURCES: HARRIS COUNTY APPRAISAL DISTRICT, MONTGOMERY CENTRAL APPRAISAL DISTRICT COMMUNITY IMPACT NEWSPAPER *CERBERUS CAPITAL DOES NOT OWN SINGLE FAMILY PROPERTIES IN MONTGOMERY COUNTY UNDER ITS NAME, ACCORDING TO MCAD, BUT FIRSTKEY HOMES IS A CERBERUS SUBSIDIARY, ACCORDING TO SECURITIES AND EXCHANGE COMMISSION.
Howard highlighted the rise of build-to-rent communities with 26% of homes in NRHC company portfo- lios representing the category as of the fourth quarter of 2021 versus 3% in 2019. In Tomball, the rental com- munity Sydney’s Park, developed by RoseRock, began leasing in 2021, and Tricon Residential Inc. broke ground on Willow Creek Manors o FM 2920
… But I also couldn’t tell my seller that she shouldn’t sell her house for that price.” David Howard—executive director of the National Rental Home Coun- cil, a nonpro t that represents the single-family rental home industry— cited member-provided data to show 1.3% of single-family homes nation- wide are owned by large companies.
on Dec. 7, Community Impact Newspa- per reported. Mark Stoll, who serves on Tomball’s City Council and previously served on the Tomball Planning and Zoning Commission, said most cities, includ- ing Tomball, generally do not have the authority to control development after it has been platted—or after the type of constructed property has been set.
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