Texas Outpaces U.S. in Median Household Income Growth

Texas Outpaces U.S. in Median Household Income Growth, New Home Sales

AUSTIN (Texas Association of Realtors) – Texas outpaced the nation in median household income growth and new-home sales in 2013, according to the 2014 Texas Home Buyers and Sellers Report released yesterday by the Texas Association of Realtors.

The report showed that the median household income of Texas homebuyers increased 9.6 percent to $91,700 from 2012 to 2013. This is nearly double the increase in median household income among U.S. homebuyers, which increased 5.6 percent to $83,300 during the same time frame.

Increases in median household income for first-time and repeat homebuyers in Texas were also significant, increasing 9.3 percent year-over-year to $67,800 for first-time homebuyers and 4.9 percent year-over-year to $107,100 for repeat buyers in 2013. Nationally, these figures increased 8.3 percent to $67,400 for first-time homebuyers and three percent to $96,000 for repeat homebuyers.

Thirty percent of all Texas homes purchased in 2013 were new homes, a 4 percent increase from 2012 and nearly double the share of new homes among U.S. home sales during the same time frame. Nationally, the share of new home sales remained constant at 16 percent of all U.S. home purchases in 2013.

As lending standards remained tight and home prices continued to rise in 2013, the highest share of homebuyers continued to be married couples. In Texas, the number of married homebuyers increased from 69 percent to 71 percent from 2012 to 2013, compared with an increase of 65 percent to 66 percent nationally. This is the highest share for married couples since 2001.

Other key statistics from the report:

• The percentage of first-time homebuyers in Texas decreased two percent to 33 percent of all Texas homebuyers in 2013. Nationally, the percentage of first-time homebuyers decreased 1 percent to 33 percent of all U.S. homebuyers in 2013.
• In 2013, the average Texas homebuyer was 43 years old, while the average first-time buyer was 31 years old and the average repeat buyer was 50 years old. This is on trend with the ages of homebuyers nationally.
• The tenure of owning a home in Texas decreased one year to eight years in 2013, but, nationally, remained unchanged at nine years.
• Ninety-four percent of Texans sold their home through a Realtor in 2013, compared with 91 percent nationally.
• For Sale by Owner (FSBO) homes in Texas sold for significantly less than homes sold using a Realtor. The average Texas FSBO home sold for $153,500, compared with $200,000 for the average Realtor-assisted home sale.