The picture of a Texas homebuyer has changed distinctly over the last year. According to a report released last week by the Texas Association of Realtors, Texan households are more diverse than ever, representing a growing array of ethnic backgrounds, ages, family statuses, and socioeconomic groups.
“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.
The number of single homebuyers continues to grow, with single female home ownership rising five percent over the last year. Single females now make up 19 percent of homebuyers across the state. Single male owners also rose a respectable two percent.
The median age of homebuyers also shifted to 35, with Texans buying later in life than ever before. They’re selling younger, too, with the median age of home sellers at 46 years.
Ethnic diversity among homeowners also broadened, according to the report. Hispanic buyers now make up roughly 14 percent of Texan homebuyers, six percent self-identify African American and four percent are Asian. Among minority first time homebuyers, Hispanic buyers comprise 27 percent, while among minority repeat buyers, African Americans.
Housing Affordability Challenges Grow Statewide
The report wasn’t all good news, unfortunately. Data also indicates that housing affordability continues to loom as a considerable challenge to the statewide housing market. “Rising home prices, lower household incomes, and tight lending standards are making it increasingly difficult for some Texans to afford a home,” said Fullerton.
The median household income among Texas homebuyers declined nearly 3 percent year-over-year to $94,200. The median home price paid among Texas homebuyers was $215,000, significantly higher than the Real Estate Center at Texas A&M University’s estimation of $150,000 as a typical home price for entry-level and first-time homebuyers.
Another unfortunate piece of data indicates that Texas homebuyers find themselves waiting longer than ever to buy a home as a result of debt – three years on average. Just a year ago, only 10 percent of homebuyers waited six to 12 months to save up a down payment. Today, that number rests at 44 percent.
“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.”