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
AUSTIN, Texas, March 2, 2015 /PRNewswire-HISPANIC PR WIRE/ — 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 percent 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 percent to $84,500 during the same time frame.
Additionally, 28 percent of Texas homes purchased between July 2013 and June 2014 were new homes, a one percent 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 percent 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 percent of all Texas homebuyers between July 2013 and June 2014. Nationally, the percentage of first-time homebuyers decreased five percent to 33 percent 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 one percent year-over-year to 72 percent, compared to a one percent decrease to 65 percent 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 the following:
- Median household income among first-time homebuyers increased 5.8 percent year-over-year to $72,000 for first-time homebuyers in Texas and 2.3 percent to $68,300 for first-time homebuyers nationally.
- Meanwhile, median household income among repeat buyers decreased, dropping 8.9 percent to $97,500 in Texas and dipping one percent 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.
- Sixteen percent 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 percent.
- 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 percent 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 the 2014 Profile of Homebuyers and Sellers – Texas Report by the National Association of REALTORS®, which surveyed Texans who bought or sold a home between July 2013 and June 2014. The Texas Association of REALTORS® distributes insights about the Texas housing market each month, including quarterly market statistics, trends among luxury home sales, condominium and townhome sales, international trends, and more. To view the Texas Homebuyers and Sellers Report in its entirety, visit TexasRealEstate.com.
About the Texas Association of Realtors
With more than 90,000 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.
CONTACT: Stacy Armijo