The affordability of homes starts with the price of the empty lot. A home usually sells for 5 to 6 times what the lots costs. So a $50,000 lot may yield a $300,000 house. Homes are affordable when prices are between 3.2 & 3.8 times a household’s income. Dr. James Gaines, chief economist at the TX A&M Real Estate Center, looks for a 5% downturn in single family homebuilding as lack of affordable retail lots.
Monthly Archives: August 2019
HOMEBUYERS in TEXAS
Median age of homebuyer 47 years old & median household income is $101,700. 32% are first-time homebuyers, but 5% of buyers over 50 years of age purchase senior-related housing. 10 weeks is median length of time buyers spent searching for a home & looked at 10 homes. 13% buyers purchased a home for multi-generational family due to aging parents or children over 18 living at home.