Composition of Texas homebuyers grows more diverse
The Texas Homebuyers and Sellers Report, released today by the Texas Association of REALTORS®, shows an increase in the ratio of single homebuyers in Texas, a growing number of minority buyers, and affordability challenges across the state.
“The profile of Texas homebuyers is as diverse as Texas itself, continually broadening as the demand for Texas real estate grows,” said Vicki Fullerton, chairman of the Texas Association of REALTORS®. “At the same time, rising home prices, lower household incomes, and tight lending standards are making it increasingly difficult for some Texans to afford a home.”
Single female homebuyers represent 19% of all Texas buyers—up 5 percentage points from the previous report—and the ratio of single male homebuyers rose 2 percentage points to 9%. Texas homebuyers who identify as Hispanic now account for 14% of all buyers and make up 27% of first-time homebuyers. African-Americans account for 6% of all Texas homebuyers and are the group of minority buyers most likely to be repeat homebuyers, at 27%.
The median age of first-time buyers in Texas increased three years to 35 years old, while the median household income among Texas homebuyers declined 3% year-over-year to $94,200. The median home price paid by Texas homebuyers was $215,000—higher than the Real Estate Center at Texas A&M University’s estimate of $150,000 for the price paid by the typical entry-level or first-time buyer. According to the report, 44% of Texas homebuyers waited six months to a year to save for a down payment—only 10% waited that long in last year’s report.
“As obstacles to purchasing a home increase, soaring property taxes due to a lack of accountability when tax rates are set at the local level have made it difficult for Texans to continue to afford that home,” concluded Fullerton. “The Texas Association of REALTORS® supports Senate Bill 2 and House Bill 15 to bring honesty and transparency to the property tax rate setting process and facilitate property owner engagement in that process.”