Texas continues to outpace U.S. in household income growth, new home sales
Texas Association of REALTORS® releases the 2015 Texas Homebuyers and Sellers Report
FOR IMMEDIATE RELEASE—
CONTACT: Stacy Armijo - Pierpont Communications, 512-448-4950
Mar 02 2015 — Austin
Texas continues to be a national leader in median household income growth and new home sales, according to the 2015 Texas Homebuyers and Sellers Report released today by the Texas Association of REALTORS®.
Scott Kesner, chairman of the Texas Association of REALTORS®, commented, “Texas is one of the best states to buy a home in the U.S. because it’s one of the best places to work, do business, and raise a family. Our state’s lasting job and economic growth continues to bring higher incomes for Texas families and reaffirms new home sales and development as a critical component in meeting market demand.”
From July 2013 to June 2014, the median household income of Texas homebuyers increased 5.9% year-over-year to $97,500. This is more than four times the increase in median household income among homebuyers nationally, which rose 1.4% to $84,500 during the same time frame.
Additionally, 28% of Texas homes purchased between July 2013 and June 2014 were new homes, a 1% decrease from the previous time period yet still nearly double the share of new homes among U.S. home sales during the same time period. Nationally, the share of new home sales remained constant at 16% of all U.S. home purchases.
Increased restrictions in lending standards and rising home prices in certain local markets continue to stifle the growth of first-time homebuyers in Texas. The percentage of first-time homebuyers in Texas decreased four percent to 29% of all Texas homebuyers between July 2013 and June 2014. Nationally, the percentage of first-time homebuyers decreased five percent to 33% of all U.S. homebuyers during the same time frame.
As a result, Texas homebuyers are older and more likely to be married couples. From July 2013 to June 2014, the typical Texas homebuyer was 45 years old, an increase of two years from the previous report. The percentage of married homebuyers increased 1% year-over-year to 72%, compared to a 1% decrease to 65% nationally.
Chairman Kesner concluded, “Housing affordability is not just a factor of income. It’s also dependent upon the buyer’s ability to qualify for a mortgage and to afford the ongoing costs of homeownership. The 84th Texas Legislature will consider several important issues this session that impact homeownership in Texas. Texas REALTORS® urge our state’s leaders to enforce policies that will continue to protect the rights and quality of life of Texas homeowners.”
Other key statistics from the report include:
- Median household income among first-time homebuyers increased 5.8% year-over-year to $72,000 for first-time homebuyers in Texas and 2.3% to $68,300 for first-time homebuyers nationally.
- Meanwhile, median household income among repeat buyers decreased, dropping 8.9% to $97,500 in Texas and dipping 1% nationally to $95,000 year-over-year.
- Texans are buying newer, larger homes than homebuyers nationwide. The typical three-bedroom, two-bathroom home in Texas was 2,100 square feet and built in 2002. Nationally, the typical three-bedroom, two-bathroom home was 1,870 square feet and built in 1993.
- 16% of homebuyers in Texas purchased a multi-generational home due to children over the age of 18 or aging parents moving into the house. Nationally, this was 13%.
- The tenure of owning a home increased one year in both Texas and nationally from July 2013 to June 2014, to nine years in Texas and 10 years nationally.
- For Sale by Owner (FSBO) homes in Texas sold for 30% less than homes sold using a Texas REALTOR®. The average Texas FSBO home sold for $160,000, compared to $228,000 for the average REALTOR®-assisted home sale.
About the Texas Homebuyers and Sellers Report
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.
About the Texas Association of REALTORS®
With more than 110,000 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.