Texas homebuyers are more diverse and earn higher incomes compared to national homebuyers, according to the 2021 Texas Homebuyers and Sellers Report released by Texas REALTORS.
The annual report highlights not only the demographics of Texas homebuyers who had real estate transactions between July 2019 and June 2020 but also their motivations for buying a home and their perceptions of the home buying and selling process.
According to the report, the percentage of minorities who bought homes between the two reporting periods is up from the previous year and higher than national numbers. Of those who bought homes during the period covered in the report, 18% identified as Hispanic/Latino (up from 14%), 7% identified as Black/African-American (up from 5%) and 6% identified as Asian/Pacific Islander (up from 4%). The percentage of homeowners who identified as White/Caucasian fell from 78% to 69%.
Texas homebuyers earned more than the national average, with the median household income of $112,500, compared to the national median of $96,500. The median amount of student loan debt among Texas homebuyers was $20,500, lower than the national median of $30,000.
A majority of homebuyers (53%) said that finding the right home for them was the most challenging part of the home buying process, while 78% said they would recommend or work with their Realtor again. A total of 27% of Texas homebuyers said their main reason for purchasing a home was the desire to call their home a place of their own.
The report also categorized homebuyers by marital status and found that most Texas homebuyers were married couples (68%), followed by single females (15%), single males (9%) and unmarried couples (6%).
About half (49%) of homebuyers owned a home previously, and 42% rented properties before buying a home during the reporting period. The rest either lived with loved ones (8%) or eventually purchased the home they were renting (1%).
Texas homebuyers also stated that they mainly wanted to purchase new home builds to avoid renovations or problems with plumbing or electricity, take advantage of the amenities provided by new construction communities, and choose custom design features. The main reasons Texas homebuyers bought previously-owned homes were because of their overall better value and better price. Homebuyers spent a median of eight weeks searching for a home.
Of those selling a home, their primary motivation was to move closer to family and friends, job relocation or a desire for a larger home. The median sales price was $70,000 more than what sellers paid for their homes, and their homes generally spent about four weeks on the market.
To read the full report, click here.