Tarrant County is one of the first 5 counties in the United States, where most of the houses sold were purchased by investors or companies. Other Texan counties where this is usual are Dallas, Rockwall, Midland, and Travis, according to the National Association of Realtors

One out of two houses is bought by a company, investor, or corporation in Tarrant County, which is the second most populated county in Dallas Fort Worth, according to the Dallas Morning News. 52% of the houses sold last year were bought by investors.

According to The National Association of Realtors, the prices of houses rise 15% every year and the rents of multi-family homes are also up to 11% year after year. The inflation of the prices attracts investors who know that most people -especially millennials or minorities- can’t afford a house and will resort to renting. 

The elevated rates of the real estate market make it profitable to rent houses and apartments to families and young people who can’t afford to own a place by themselves. Investors are well aware of it, Texas leads the list of states with the highest share of institutional buyers (20%). 

Investors are attracted to areas with a high density of minority groups especially Black households, high density of the Millennial age group, high income and education, and many people moving into the area, among many other factors, according to the investigation by the National Association of Realtors. 

The houses purchased by the companies or investors share some characteristics, they usually have many flaws so they are cheaper and paid in cash. The prices are 26% lower than the state median price of a house. After fixing the real estate, institutional buyers tend to rent them at a higher rate.