Texas Homeownership Hits All-time High

Texas’ homeownership rate hit an all-time high of 70 percent in September 2020, with Austin leading the way in Texas’ Urban Triangle, according to the latest Texas Housing Insight report from the Real Estate Center at Texas A&M University. This rate placed state homeownership higher than nationally (67.4 percent) for the first time since 2012.

Increasing almost nine percent, Austin’s homeownership rate of 74.7 percent placed the capital at the top of the Urban Triangle (Austin, Dallas-Fort Worth, and San Antonio) for the first time in 12 years. Dallas-Fort Worth’s rate increased to 69 percent, while San Antonio was relatively unchanged at 66.3 percent. Houston dropped, from 67.9 percent to 65.5 percent.

“Strong sales activity during the third quarter pushed the Texas homeownership rate to the unprecedented high,” said Real Estate Center Chief Economist Dr. Jim Gaines. “Nationally, homeownership fell across all races and every age group, except those 65 and older.”

Gaines did caution that COVID-19 foreclosure-protection policies will expire in the coming year, indicating, “Homeownership could suffer in 2021,” especially since “Texas has a higher proportion of Federal Housing Administration and Veterans Administration loans.”

Also cited in the report were September housing sales, which increased 6.3 percent. This pushed third-quarter sales up over one-third compared to the second quarter, when COVID-related shutdowns were heavily in play. New home sales were up over eight percent from the second quarter to the third quarter. Median home price increased almost 10 percent in September 2020 compared to September 2019. Read the full report here.