With home prices in the state rising, Texas buyers need higher incomes to afford a house.
The median household income of Texas homebuyers last year was $112,500 — up from $95,500 in 2019, according to a new report from the Texas Realtors association.
The Texas figure was substantially ahead of the $96,500 national median, according to the real estate group’s just released “Texas Homebuyers and Sellers Report.”
Buyers in the state need those higher incomes to afford a purchase.
The median Texas home sales price in the first quarter of 2021 was up more than 13% from a year earlier to a record $274,300, according to the Texas Realtors.
“The increase in household income is encouraging as well as the broader base of diversity in homebuyers,” Marvin Jolly, 2021 chairman of Texas Realtors, said in the new report. “Even with higher income levels, buyers are experiencing one of the most challenging markets in history right now, as the supply of homes for sale in most areas of Texas is extremely low.
“Although median household incomes continue to rise, median home prices have risen aggressively.”
The Texas real estate group looked at home sales between July 2019 and June 2020 for its latest market study.
More than 30% of the buyers in Texas were acquiring a home for the first time. And more than 40% of buyers in the state last year had been renting a home or apartment.
More than half of the buyers said finding the right property was the biggest challenge.
Inventories of homes on the market in Texas metro areas are at an all-time low.
Home shoppers spent a median of two months shopping for a house, looking at a median of 10 properties before picking one.
With fewer preowned houses on the market, 30% of buyers chose a new home — up from 24% in 2019, according to the Texas Realtors. The percentage of Texas buyers that picked a new house was twice the national median.
The greatest share of homebuyers in Texas is married couples. But the number of single female buyers is increasing.
The Realtors study found that the share of Texas buyers identified as Hispanic or Latino rose to 18% from 14% in 2019. And buyers identified as Black or African American increased to 7% from 5% the year before.
The most popular reasons for selling homes in Texas were to move closer to friends or family, for a job relocation or for a larger home.
Texas sellers had spent a median of nine years in their homes. And the statewide median sales price was $70,000 more than what was originally paid for the property.
The median time sellers said their houses were on the market was only one month.