Texas Homeownership Hits Record High as Sales Surge
The COVID-19 pandemic hasn’t put a pause on the increase in Texas homeowners. The state’s homeownership rate just hit an all-time high of 70%, according to a new report from the Real Estate Center at Texas A&M University. Texas' homeownership share now tops the nationwide rate of 67.4%. It’s the first time in eight years that Texas has surpassed the national average.
“Strong sales activity during the third quarter pushed the Texas homeownership rate to the unprecedented high,” Real Estate Center chief economist Dr. Jim Gaines said in the new report. “Nationally, homeownership fell across all races and every age group, except those 65 and older.” The Austin area has the most homeowners, with an ownership rate of 74.7%. Dallas-Fort Worth is second with a 69% homeownership rate.
Homeownership in the Houston area has fallen slightly to 65.5%, according to the latest study.
“Homeownership could suffer in 2021 as COVID-19 foreclosure-protection policies expire,” Gaines said. “Texas has a higher proportion of Federal Housing Administration and Veterans Administration loans.”
Homeowners with those government-supported mortgages have been more likely to seek payment forbearance during the pandemic. Housing analysts worry that mortgage defaults will rise when forbearance programs expire.
North Texas real estate agents have sold a record more than 99,000 single-family homes during the first 10 months of 2020. That’s an 8% increase from property sales at this time last year. With record low mortgage rates, buyers have headed to the housing market this year, looking for new properties with more room during the pandemic.
Statewide home sales were up more than 5% through the third quarter — a greater gain than the nationwide year-over-year increase of 2.1%...
