Home Sales to Investors On the Rise

Sales of homes to investors and corporations, often in cash, are pricing out would-be homebuyers.

May 24, 2022, 7:00 AM PDT

By Diana Ionescu @aworkoffiction


Suburban Home

TBaker770 / Shutterstock

“In 2021 — as home prices, then rents, soared — so did investor activity in Harris County, according to a data analysis by the National Association of Realtors. About 40 percent of existing homes sold last year went to investors, one of the highest percentages in the country,” reports R.A. Schuetz in the Houston Chronicle. “Texas — which has seen strong population growth from residents fleeing higher-cost markets — led the country for the highest share of homes purchased by corporations and companies.”

Purchases of single-family homes by investors—defined in the analysis as “any corporation, company or limited liability company — categories that include both hedge funds and mom-and-pop landlords, flippers and a number of real estate startups” are often done in cash, making it increasingly difficult for potential homebuyers and renters to compete. “Even with number of existing homes being converted to rentals — a survey of members of the National Association of Realtors estimated 42 percent of company-bought homes are turned to rentals — a family looking to rent a single-family home will find options scarce.” As for the rest, “Most of the investor-bought homes that are not turned to rentals eventually are sold to homebuyers, though likely at higher prices to compensate for improvements, holding expenses and market changes.”

Thursday, May 19, 2022 in Houston Chronicle

View south along Interstate 45 (North Freeway) from the ramp between westbound Interstate 10 and southbound Interstate 45 in Houston, Harris County, Texas

Houston Apartments To Be Demolished for Freeway Widening

Despite a federal hold on the controversial freeway widening project, the Texas Department of Transportation is pushing ahead with the demolition of an apartment complex in downtown Houston.

July 5, 2022 - Houston Chronicle

Car Traffic

San Francisco Just Ended Single-Family Zoning

The San Francisco Board of Supervisors voted to Tuesday to eliminate single-family zoning, but pro-development advocates say additional changes are needed to unleash a wave of construction.

June 29, 2022 - San Francisco Chronicle

A Gold Line AnsaldoBreda P2550 train enters Mission Station in South Pasadena on February 25, 2012.

Land Banking to Prevent Transit-Oriented Displacement in Los Angeles

The Los Angeles County Metropolitan Transportation Authority (Metro) will implement a new land banking program to mitigate gentrification and displacement around future transit lines.

June 28, 2022 - Los Angeles Daily News

Train station in New Haven, Conncticut

Transit-Oriented Walking Tours Highlight the Value of Density

Housing advocates in Connecticut are leading walking tours that fight misinformation about transit-oriented development and emphasize the benefits of increased density.

25 minutes ago - Connecticut Public Radio

Worker packs boxes in an Amazon warehouse

State Reports Seeks To Guide Warehouse Development in New Jersey

With demand for sprawling e-commerce warehouses growing, New Jersey’s State Planning Commission has released a series of documents outlining best practices for cities examining warehouse proposals.

1 hour ago - CentralJersey.com

Traffic in Manhattan New York

Manhattan Congestion Pricing Could Start in 2023

The Metropolitan Transportation Authority has resubmitted its environmental impact assessment to federal officials, who sent the agency over 400 additional questions earlier this year.

2 hours ago - Gothamist

New Case Study Posted on HUD User

HUD's Office of Policy Development and Research

New Updates on The Edge

HUD's Office of Policy Development and Research

International Real Estate Strategies and Deal Negotiation

Harvard Graduate School of Design Executive Education

Urban Design for Planners 1: Software Tools

This six-course series explores essential urban design concepts using open source software and equips planners with the tools they need to participate fully in the urban design process.

Hand Drawing Master Plans

This course aims to provide an introduction into Urban Design Sketching focused on how to hand draw master plans using a mix of colored markers.