Home Sales to Investors On the Rise

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

1 minute read

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

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Cover CM Credits, Earn Certificates, Push Your Career Forward

Aerial view of town of Wailuku in Maui, Hawaii with mountains in background against cloudy sunset sky.

Maui's Vacation Rental Debate Turns Ugly

Verbal attacks, misinformation campaigns and fistfights plague a high-stakes debate to convert thousands of vacation rentals into long-term housing.

July 1, 2025 - Honolulu Civil Beat

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

July 9, 2025 - Diana Ionescu

Map of Haussmann's redesign of Paris in the 1850s through 1870s under Napoleon III.

In Urban Planning, AI Prompting Could be the New Design Thinking

Creativity has long been key to great urban design. What if we see AI as our new creative partner?

June 30, 2025 - Tom Sanchez

Red and white "Wildfire Evacuation Route" sign on signpost.

Cal Fire Chatbot Fails to Answer Basic Questions

An AI chatbot designed to provide information about wildfires can’t answer questions about evacuation orders, among other problems.

5 hours ago - The Markup

Protester at Echo Park Lake, Los Angeles holding sign that says "Housing is a human right"

What Happens if Trump Kills Section 8?

The Trump admin aims to slash federal rental aid by nearly half and shift distribution to states. Experts warn this could spike homelessness and destabilize communities nationwide.

6 hours ago - Shelterforce Magazine

Aerial of rainbow painted crosswalks at large intersection in Castro District, Sna Francisco, California.

Sean Duffy Targets Rainbow Crosswalks in Road Safety Efforts

Despite evidence that colorful crosswalks actually improve intersection safety — and the lack of almost any crosswalks at all on the nation’s most dangerous arterial roads — U.S. Transportation Secretary Duffy is calling on states to remove them.

7 hours ago - Streetsblog USA

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.

Planning for Universal Design

Learn the tools for implementing Universal Design in planning regulations.

Home and Land Services Coordinator

Appalachian Highlands Housing Partners

Associate/Senior Planner

Gallatin County Department of Planning & Community Development

Senior Planner

Heyer Gruel & Associates PA