More Hispanic/Latino, Black/African-American and Asian/Pacific Islander homebuyers are helping to drive the red-hot Texas housing market, according to a new analysis from an Austin-based Texas real estate industry group. But severely low inventory is still a major challenge across the entire residential market.
The report from Texas Realtors found that White/Caucasian homebuyers - based on closed real estate transactions - fell from 78 percent of the Texas buyer market to 69 percent between July 2019 and June 2020. The 2021 Texas Homebuyers and Sellers Report also found that Hispanic/Latino buyers rose form 14 percent to 18 percent during that time, and Black/African American buyers increased from 5 percent to 7 perent of the Texas market. Asian/Pacific Islanders in Texas represented 6 percent of all buyers - up from 4 percent during the period studied.
As the voice of Texas real estate, it is a priority for Texas Realtors to continue to speak with our state's leaders and work to ensure that homeownership remains attainable, particularly for first-time homebuyers. - Marvin Jolly - 2021 Chairman of Texas Realtors.
Higher incomes are also supporting the strong buying environment. And first-time home purchases are holding steady at nearly a third of all transactions. The median household income for Texas homebuyers was $112,500 during the analysis time frame - $16,000 more than the national median. Of all Texas homebuyers, 31 percent were first-time homebuyers.
"The increase in household income is encouraging as well as the broader base of diversity in homebuyers," said Marvin Jolly, 2021 Chairman of Texas Realtors, in the organization's official press release on the 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."
Other key findings from the 2021 Texas Homesbuyers and Sellers report:
- The majority of Texas homebuyers (68 percent) were married couples, followed by single females (15 percent).
- Single males (9 percent) and unmarried couples (6 percent) made up a significantly smaller portion of the buyers market.
- The median age of Texas homebuyers was 48 - four years younger than the previous year.
- The most common reason for sellers to place their homes on the market was to move closer to family or friends. Relocating for jobs and needing more space were also key factors.
- Texans who sold houses spent a median of nine years in their homes before selling.
"Although median household incomes continue to rise, median home prices have risen aggressively," Jolly added. "As the voice of Texas real estate, it is a priority for Texas Realtors to continue to speak with our state's leaders and work to ensure that homeownership remains attainable, particularly for first-time homebuyers."