During the first quarter of 2025, NAHB reports that median sales price of a new home was just $14,600 more than an existing home. This may be why some 30 percent of Texas homebuyers opted to purchase a newly constructed home between July 2023 and June 2024. The 2025 Texas Homebuyers and Sellers Report, recently released by Texas Realtors, indicates that Texas buyers are twice as likely as buyers nationwide to buy new.
But it is important for builders to analyze who is buying them as they design product. Some of the findings from the Texas Realtors report may be surprising.
First-time Purchases Down
Starter-home prices have climbed sharply, reaching a median of $287,000 in 2024—up 44% from 2020. Mortgage rates are also higher, pushing the income needed to qualify from $49,008 in 2020 to $101,376 in 2024, per the National Association of Realtors.
Though wages have risen, they haven’t kept up with housing costs. As a result, it’s taking longer for people to afford their first home. Rising student debt and other financial burdens are adding further delays. Despite rising wages, homeownership remains out of reach for many Americans
A record low proportion of Texas homes went to first-time buyers, accounting for only 20% of home purchases during the period. Nationally, first-time home purchases are 24% of home sales, also an all-time low.
Median Buyer Age Reaches Record High
Also aligning with national trends, the median age of homebuyers in Texas was at a record high of 58, continuing a general upward trajectory that had dipped to 49 in the previous period from 56 the year before that.
More Texans Buying Multi-Generational Homes
Multi-generational homes were more popular than ever, with 24% of Texas buyers saying they intended to share the home with adult children, adult siblings, parents, or grandparents. Nationally, 17% of home purchases fit that description. Both figures are new highs.
Many Sellers Take Their Time
When asked about their sense of urgency in selling a home, 49% of Texas sellers said they could wait for the right offer. An additional 37% said they could sell in a reasonable time frame, and only 15% reported needing to sell as soon as possible. Many did sell right away, as 31% of sellers had their homes on the market for one week or less. The top reason sellers gave for selling was wanting to move closer to friends and family.
Texans Remain Highly Satisfied with Realtors
Clients’ satisfaction with Realtors was high, with 89% of buyers saying they would definitely (74%) or probably (15%) use the same agent again. Sellers were similarly enthusiastic, with 87% reporting they would definitely (71%) or probably (16%) use their agent again.
Insights for Homebuilders Based on Texas Homebuyer Trends
- Decline in first-time buyers: With only 20% of Texas home purchases going to first-time buyers, homebuilders might focus on creating homes that cater to older and repeat buyers. Focus on home designs offering more space, higher-end finishes, and features suited for established families.
- Increasing median buyer age: The median age of buyers at 58 suggests that homebuilders should consider designs and features appealing to mature buyers. Consider single-story layouts, age-friendly accessibility, and amenities for empty nesters.
- Popularity of multi-generational homes: The significant rise in multi-generational living, now accounting for 24% of Texas buyers, indicates a strong market for larger homes. Flexible layouts, additional bedrooms, or separate living quarters could be the winning ticket.
- Sellers’ patience: Since nearly half (49%) of sellers are willing to wait for the right offer, there may be opportunities for homebuilders to attract these sellers. Consider incentives or trade-in options for new homes, especially those closer to friends and family—the leading reason for selling.
- High satisfaction with Realtors: The strong satisfaction levels among buyers and sellers with their agents (89% and 87%, respectively) highlight the importance of partnering with skilled Realtors when marketing new builds. Realtors, particularly those with ties to people migrating into Texas from other states, can connect homebuilders to highly motivated and satisfied buyers.
