Because people’s housing needs change as they get older, market demand cans influence for various household sizes and types. Research shows that a reduction in amounts of young middle-aged and adult homeowners and a rise in older homeowners. Meanwhile, most homeowners are still middle-aged. In 2018, middle-aged homeowners accounted for the largest shares of owner-occupied residential units in both Texas (43.9 percent) and the U.S. (43.7 percent) (Table 1). In both the country and the nation, the market shares of homes owned by middle-aged residents trended up until 2014, they then started a downward trend (Figure 4). Including amenities and home size, so do their home needs, as households age. Young adults may need homes, middle-aged households with kids prefer houses that are bigger, and seniors might prefer retirement homes or smaller homes. Likewise, by era, so will the distribution of homeownership since the distribution of individuals by age changes. Awareness of these changes will help property professionals balance supplies of houses with the market requirement for various home sizes and sorts and organize. Recent Real Estate Center research shows a downward tendency in young adult and middle-aged homeowners at both Texas and the U.S. however an upward trend in older homeowners (to get a breakdown of how the U.S. Census Bureau defines those age groups, see Table 1).
In both the country and the nation, seniors 85 years or older possess the smallest stocks of residential units–2.6 percent in Texas and 3.5 percent in the U.S. at 2018, up from 2010’s 2.1 percent to the state and 2.8 percent for the country (Figure 10). This group consists of homeowners age 55-64 and 45-54. The group is trending up Though the market shares for the 45-54 group are trending downward. The market share of Texas homeowners age 45-54, largely older Generation X, decreased from 24.2 percent in 2010 to 21.8% in 2018 (Figure 5). Meanwhile, that demographic’s share decreased from 23.8 to 20.7% nationwide. The share of Texas homeowners 55-64 years old, largely younger boomers, rose from 19.6 percent in 2010 to 22.1 percent in 2018, while the share nationally rose from 20.6 to 23 percent (Figure 6).
At 38.9 per cent, Odessa directed Texas Metropolitan Statistical Areas with the largest share of residential units owned by young adults at 2018 (Table 2). Sherman-Denison had the smallest share at 23.3 percent.
Tyler had the largest shares of homes in the older bracket (35.2 percent), while Austin-Round Rock had the smallest (21.8 percent).
Odessa had the largest share of houses with mid-range owners (57.4% ), and Sherman-Denison again had the lowest (42.1 percent).
By 2014-18, the nation’s average median age was 34.4 years compared with 37.9 years to the country. This distinction is represented in the supply of homeownership of the state by era. In 2018, young adults possessed 29.6 percent of houses in Texas compared with 25.5% for the U.S. (Table 1). Shares for this group are falling in both the country and the nation (Figure 1).
Texas seniors’ share of owner-occupied residential units in 2018 was 26.6 percent, lower compared to 30.8 percent national average (Table 1). Shares for this demographic trended upward both in Texas and nationally (Figure 7).
The young adult group consists of two age brackets: people under 35 and those 35-44 years old. These homeowners, that are under 37 years in 2020, are largely Generation Z and younger and elderly Generation Y (millennials). The market share of Texas homeowners 35-44 years old decreased from 20.7 percent in 2010 to 18.4% in 2018 while the country’s decreased from 19 to 15.6 percent (Figure 3). This group includes younger Generation X.
Assessing Texas, U.S. Homeowners
The 65-74 demographic, largely elderly people, has the largest share of housing units owned by seniors (Table 1). In 2018, the market share with this category in Texas was 15.9 percent, up from 12.4% in 2010 (Figure 8). The nation’s share increased from 13.4 to 17.9 percent over precisely the exact same period.
The senior demographic: 65-74, 75-84, and 85 or older is comprised by three age brackets. Texas’ market shares for all three mounts have remained smaller than the shares for the country on account of the younger population of the state.