Household incomes can't keep up with rising home prices in Texas
Housing demand remains high, but income growth stalled
Similar to California’s labor market and housing market conflicts, Texas' housing demand and new home development remained high last year, while median household income for Texas homebuyers decreased slightly, according to the Texas Homebuyers and Sellers Report released yesterday by the Texas Association of Realtors.
"Texas home prices have risen steadily for the last several years, but household incomes for many Texas homebuyers are not growing fast enough to compensate,” said Leslie Smith, chairman of the Texas Association of Realtors.
During June 2015, the median household income fell .4% year-over-year to $97,100. During that same time frame, 30% of homes purchased were new homes, a 2% increase.
"Strong population growth and relocation activity combined with low housing inventory levels continue to generate strong demand for new home development,” Smith said. “In many markets, new homes are selling as quickly as they can be built.”
Homes sold in Texas are typically larger and newer than homes sold nationwide. The median size of a home purchased in Texas was 2,060 square feet, compared to 1,900 square feet nationally. The median year homes in Texas purchased between July 2014 and June 2015 were built was 2003, compared to 1991 nationally.
“Texas Realtors are working with their clients to identify affordable paths to responsible homeownership and working collectively at the Legislature to keep homeownership affordable in our state," Smith said.