Despite household income falling over the course of the pandemic, home prices and the cost of construction have increased nationwide. Where this used to primarily be an issue for urban neighborhoods, rural areas are now experiencing the same spike. This has resulted in even bigger challenges for new home buyers, regardless of where you live in the United States. But how long can we, and will we, go on like this? Here is some professional insight from top home builders in Texas on what this housing price surge means for homeowners.
What is considered “healthy” home buying?
Currently, there six cities in the United States that are considered to have a healthy ratio of price to income. None of them are located in Texas. Luckily, none of the cities with the least affordable homes are located in Texas, either. Between Los Angeles and San Francisco, California has the highest ratio. This makes it understandable why so many residents are moving from there to Texas.
Across the board, though, the growth of U.S. home values has been outpacing wage gains. According to data from Clever Real Estate, Americans need an average income of $144,192 to be able to afford a home. However, the median household income to date is $69,178. For this reason, top home builders in Texas recommend spending no more than 30% of your gross monthly income on housing.
How much do Texas homes cost right now?
As of September, it was reported by Texas A&M University’s Texas Real Estate Research Center that the median Texas home price had increased for its ninth consecutive month. At the time, it was clocked at $310,000. Although construction activity is expected to slow, top home builders in Texas, like Bat City Builders, are still capable of providing you with an excellent house in the coming year.
By October, within Austin city limits, specifically, the median price was found to be approximately $536,000. These prices are rising quickly on account of the wealthy individuals that buyers are competing with. It is important to note that the share of luxury homes sold in Austin doubled from last year. They are inevitably more costly than other types of houses. That being said, the number of home sales across the five-county Central Texas region has decreased.
How is this projected to change in the future?
It has been projected that home price pressures are unlikely to ease overall. The issue is, in order to see significant declines in costs, there would need to be a significant decline in demand. With the combination of low mortgage rates and remote work opportunities, more and more people are on the hunt for a home. This is especially the case in the suburbs, such as Pflugerville, Cedar Park, and Round Rock.
Even so, the Austin housing market is currently showing signs of cooling. This is a typical pattern of the winter months due to the holiday season. Top home builders in Texas suggest that, if you have the time to search for a home during this period, you may secure more attractive prices than you would in the spring. Be extremely aware of this because, as the tech sector continues to grow, so will the demand for rental and for sale properties.
As one of the top home builders in Texas, Bat City Builders is committed to providing you with reasonable construction prices so that you can get your dream home. In a time of uncertainty, we want to be the design-build company to give you peace of mind. Have a chat with us to discuss your next move in the buying, selling, or remodeling process.
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