In 2021, the typical Texas homebuyer was 47. A year later, they were much older

An aerial view shows homes near University Drive and Forest Ridge Lane in McKinney, Texas. The median age of Texas homebuyers grew from 47 to 56 from 2021 to 2022. (Vernon Bryant/The Dallas Morning News/TNS)
An aerial view shows homes near University Drive and Forest Ridge Lane in McKinney, Texas. The median age of Texas homebuyers grew from 47 to 56 from 2021 to 2022. (Vernon Bryant/The Dallas Morning News/TNS)

In just one year, the profile of the typical Texas homebuyer changed dramatically as home prices and mortgage rates soared. They became much older, and minority groups took a smaller share of the market.

From July 2021 to June 2022, the median age of Texas homebuyers was 56, according to new research from Texas Realtors derived from a National Association of Realtors survey. That's almost nine years older than the typical buyer from just a year before, who was 47.

During the same period, the share of first-time buyers in the market dropped from 32% to 24%. Texas Realtors cites higher mortgage rates and housing affordability as drivers of that trend. A decade before, 39% of Texas buyers were first-timers.

Just over half of purchases were made by people older than 44. People aged 25 to 34 made up just 14% of the market.

The typical Texas buyer was wealthier, with their median household income rising from $107,500 to $110,000 from the same period a year before.

More were veterans or active-duty military, with the share of those groups rising from 21% to 27%. Minority groups made up a smaller share of Texas buyers, shrinking from 30% to 23% of the market.

This change in demographics came as Texas home prices rose by tens of thousands of dollars, alongside a rapid rise in mortgage rates that overwhelmed many buyers with much larger monthly payments.

In 2023, home prices across the state finally stalled out. As of April 2023, Dallas-Fort Worth single-family home prices had sunk 5% from a year before to $404,450 while sales were down 8%.

Still, the region's home prices have grown by more than $120,000 since 2020, and economists aren't expecting a major decline that would return the market to pre-pandemic levels.

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