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Housing: Ownership

Housing: Ownership

Gap between Home Price and Income

  • Both regional median family income (for a four-person family) and median home prices levelled off in 2002 – partly as a result of the “dot-com” bust. But home prices rose steeply again while income remained flat, widening the gap between the two measures.
  • Home prices vary significantly across the region. Aggregating to the regional level can mask more severe gaps between income and prices at the municipal and county level.

Gap between Home Price and Income

Distribution of Home Prices

  • The market share of homes over $250,000 has increased, while that of more affordable homes has declined, suggesting the housing market has stopped providing housing in this range.

Distribution of Home Prices

Home Loan Activity

  • Since the mortgage crisis, annual home loans in Central Texas have dropped to below 1997 levels, the lowest since that time.
  • Home loans peaked in 2006 for all race/ethnicities, and to a higher degree for minorities.
  • Since the recession, African Americans and Hispanics in Central Texas have seen a disproportionate reduction in loans originated.

Home Loan Activity

Age of Housing Stock

  • More owned homes in Central Texas were built in the past decade than any other previous decade.
  • The majority of the housing stock built after 2000 was constructed between 2003 and 2007.
  • Nonetheless, the proportion of the housing stock built before 1980 has only decreased by about 5% since 2002.
  • Older homes tend to be less energy-efficient, which could have potential consequences moving forward.

Age of Housing Stock

CURRENT STATE

Home prices continue to rise faster than incomes; the housing bust also continues to be felt across the region.

IDEAL STATE

All Central Texans have access to quality, desirable housing in livable communities throughout the region.

CONTEXT

Home ownership traditionally signifies economic stability and is also a key driver of land-use patterns. In addition, opportunities for home ownership have a great deal of symbolic power for communities and emotional impact on residents. The security of home ownership allows people to feel more productive and able to change their communities.

ADDITIONAL MEASURES

Home Owners with Housing Problems, by Race/Ethnicity