Texas housing demand, development remains high while household income growth stalls
Published 10:38 am Tuesday, March 1, 2016
AUSTIN, Texas – Texas housing demand and new home development remained high last year, while median household income for Texas homebuyers decreased slightly, according to the Texas Homebuyers and Sellers Report released today by the Texas Association of Realtors.
Leslie Rouda Smith, chairman of the Texas Association of Realtors, commented, “Texas home prices have risen steadily for the last several years, but household incomes for many Texas homebuyers are not growing fast enough to compensate. Texas Realtors are working with their clients to identify affordable paths to responsible homeownership and working collectively at the Legislature to keep homeownership affordable in our state.”
From July 2014 to June 2015, the median household income of Texas homebuyers fell 0.4 percent year-over-year to $97,100.
New-home sales continued to grow during the same time frame. Thirty percent of Texas homes purchased were new homes, a two percent increase.
“Strong population growth and relocation activity combined with low housing inventory levels continue to generate strong demand for new home development. In many markets, new homes are selling as quickly as they can be built,” Smith added.
According to the report, the median age of first-time homebuyers decreased one year to 31 years old, while the median age of repeat buyers increased three years to 53. The median age for all Texas homebuyers was 45.
Smith concluded, “Housing market conditions are becoming increasingly competitive across the state, especially for first-time homebuyers. Texas Realtors are trusted advisors who can help homebuyers and sellers navigate tough market conditions and provide an in-depth knowledge of their local market.”
Other key statistics from the report include:
- The percentage of married homebuyers in Texas decreased two percent to 70 percent.
- Fourteen percent of Texas homebuyers were single women, while only seven percent were single men.
- Homes in Texas are typically larger and newer than homes sold nationwide. The median size of a home purchased in Texas was 2,060 square feet, compared to 1,900 square feet nationally. The median year homes in Texas purchased between July 2014 and June 2015 were built was 2003, compared to 1991 nationally.
- Fifteen percent of homebuyers in Texas purchased a home for a multi-generational family, meaning that children over 18 or aging parents would also be living in the house. Nationally, this was 18 percent.
- The tenure of owning a home in Texas decreased one year to eight years.
The Texas Homebuyers and Sellers Report is based on survey data from the Profile of Homebuyers and Sellers by the National Association of REALTORS®. The Texas Association of REALTORS® distributes insights about the Texas housing market each month, including quarterly market statistics, trends among homebuyers and sellers, luxury home sales, international trends, and more.
With more than 100,000 members, the Texas Association of REALTORS® is a professional membership organization that represents all aspects of real estate in Texas. We advocate on behalf of Texas REALTORS® and private-property owners to keep homeownership affordable, protect private-property rights, and promote public policies that benefit homeowners. Visit TexasRealEstate.com to learn more.