Report: 25% of Fort Worth homes owned by commercial interests – what buyers need to know

A new report from Fort Worth Lab, the city’s data analyzing arm, indicates that over a quarter of single-family homes in Fort Worth are owned by commercial interests, according to data from the Tarrant Appraisal District (TAD) in April.

The report, based on TAD’s property records, reveals that out of more than 247,000 single-family homes listed, approximately 183,000 are owned by residents, while 64,372 are commercially-owned properties. This suggests that 74% of single-family homes are owner-occupied, leaving the remaining 26% under commercial ownership.

The Lab defined commercial properties as those with owner names indicating commercial ownership, including acronyms such as LLC, LTD, INC, Trust, etc. Additionally, properties without a Homestead Exemption and with property addresses differing from owner addresses were classified as commercial.

Christianne Simmons, FWLab Chief Transformation Officer, clarified during a Fort Worth City Council work session that commercial properties were identified based on owner names indicating commercial ownership and the absence of a homestead exemption.

City council members, including Chris Nettles and Jared Williams, expressed concerns about home affordability and availability due to commercial ownership. They requested a detailed report to provide a better breakdown of home ownership, including rental properties and those available for purchase by neighbors.

Mayor Mattie Parker highlighted that some commercial property owners could be Fort Worth residents, owning rental properties within the city. She noted the presence of large hedge funds buying chunks of neighborhoods across the country but stated that it may not be systemic in Fort Worth.

Chandler Crouch, a realtor, mentioned that despite appearances, many properties may be owned by homeowners protecting their assets rather than investors. He emphasized that corporate ownership doesn’t necessarily mean all available inventory is taken up.

Data from North Texas Real Estate Information Systems showed a significant increase in homes available for sale in Fort Worth over the past two years. Families like Mandy and James Mendoza, moving from California to DFW, found a smooth home-buying process with plenty of available inventory.

The Fort Worth Lab is set to provide an updated presentation to city council members next Tuesday.