The Cost of Housing Is Leaving Texans Behind
Housing costs for homeowners and renters in Texas have increased significantly, while household incomes have seen only modest growth.
Contributing factors like population growth, rising construction costs, labor shortages, and stagnant wages are posing challenges for Texans who are paying a significant proportion of their income on housing, making the transition from renting to homeownership difficult.
Home values in Texas keep rising while median household incomes remain stagnant.
Median Household Income and Home Value Gap Widens in Texas, 2013-2023
Source:U.S. Census Bureau, American Community Survey, 1-Year Estimates, 2013, 2018, and 2023
*Note:Data represented in 2023 inflation-adjusted dollars.
Texas' largest MSAs experienced significant increases in median home values.
Median Home Value in Texas MSAs, 2013 and 2023
Source:U.S. Census Bureau, Small Area Income and Poverty Estimates (SAIPE) for 2022.
A clear trend: renting when we're young, owning as we age.
Occupied Housing by Tenure and Age in Texas, 2023
Source:U.S. Census Bureau, American Community Survey, 1-Year Estimates, 2023.
In 2023, women living alone or without a spouse faced a higher rental cost burden.
What is rental cost burden?
Rental cost burden refers to when a household spends 30% or more of its income on rent and utilities.
Source:U.S. Census Bureau. American Community Survey, 5-Year PUMS, 2023.
*Note:Only include households for which rental costs can be calculated.