COLLEGE STATION – Real Estate Center researchers offered Texas-specific perspectives on a national housing report released today by Harvard University.
“Immigrant households will play a larger role in growing housing demand in Texas," writes Senior Data Analyst Josh Roberson in a new blog post.
“Texas is one of only a few larger states benefitting from positive net migration, which means more people are moving in than out. While much of this migration comes from households moving from other states, that source has tapered down while international households continue to provide steady growth."
Research Associate Wesley Miller says this mix of domestic and international migration makes Texas' population younger than the national average. That's both good and bad.
“This benefits the state's economic dynamism, but it also weighs on homeownership rates," Miller writes in his blog post. “The Lone Star State continually lags the nation by about 2 percent despite relative housing affordability."
The state's diverse population presents a similar challenge as racial and ethnic homeownership disparities persist, Miller said.
“For example, Texans of Hispanic descent represented 31 percent of total housing units, but only 28 percent of those units were owner-occupied in 2016," he said. “The gap is even larger for black homeownership and has widened since the Great Recession. These imbalances conflict national consumer surveys on renters, which suggest the desire to own a home transcends racial boundaries."
According to the 30th Annual State of the Nation's Housing Report released today by Harvard's Joint Center for Housing Studies, the share of cost-burdened renters is significantly higher. The report says almost half of all renters pay more than 30 percent of their income for housing.
Roberson says multifamily rent growth is cooling in Texas, largely because of falling demand for higher-priced units while lower-priced units remain steady.
“Like the single-family market in Texas, inventory of lower-priced units is becoming scarcer with much of the new construction pipeline focused on the higher-priced market," he said.
For more on Harvard's study, click here.