TEXAS HOUSING INSIGHT

TEXAS HOUSING INSIGHT JAMES P. GAINES CHIEF ECONOMIST WESLEY MILLER RESEARCH ASSOCIATE PAIGE WOODSON RESEARCH INTERN LUIS B. TORRES RESEARCH ECONOMIST 2 1 2 0 ANNUAL SUMMARY TECHNICAL REPORT

Annual Summary... 4 Residential Construction Coincident Indicator... 8 New Vacant Developed Lots... 8 Single-Family Housing Construction Permits... 9 Texas Housing Construction Permits... 9 Major Metros Single-Family Housing Construction Permits... 10 Housing Starts... 10 Major Metros Housing Starts... 11 Total New Private Single-Family Construction Value... 11 Total Months of Inventory... 12 Texas Months of Inventory by Price Cohort... 12 Texas Months of Inventory by Price Cohort... 13 Texas Existing and New Home Months of Inventory... 13 Major Metros Existing Home Months of Inventory... 14 Major Metros New Home Months of Inventory... 14 Demand... 15 Housing Sales... 15 Major Metros Housing Sales... 15 Texas Housing Sales by Price Cohort... 16 Texas Homes Days on Market... 16 Texas Home Days on Market by Price Cohort... 17 Major Metros Existing Homes Days on Market... 17 Major Metros New Homes Days on Market... 18 30-Year Mortgage Rate and 10-Year Treasury Yield... 18 Texas Mortgage Applications... 19 Prices... 19 Real Estate Center Repeat Sales Housing Price Index... 19 Texas Existing and New Home Median Sales Price... 20 Major Metros Existing Home Median Sales Price... 20 Major Metros New Home Median Sales Price... 21 Texas Home Median Price Per Square Foot... 21 Major Metros Existing Home Median Price Per Square Foot... 22

Major Metros New Home Median Price Per Square Foot... 22 Texas Home Sale Price to List Price Ratio... 23 Major Metros Existing Home Sale Price to List Price Ratio... 23 Major Metros New Home Sale Price to List Price Ratio... 24 Real Estate Center Housing Affordability Index... 24 Real Estate Center Major Metros Housing Affordability Index... 25 2

About this Report Real Estate Center economists continuously monitor many facets of the global, national, and Texas economies. Texas Housing Insight is a summary of important economic indicators that help discern trends in the Texas housing markets. All measurements are calculated annually, unless stated otherwise. This monthly publication provides data and insights on the Texas housing markets. We hope you find them useful. Your feedback is always appreciated. Send comments and suggestions to info@recenter.tamu.edu. Dr. James Gaines, Dr. Luis Torres, Wesley Miller, and Paige Woodson Data current as of February 5, 2019 2019, Real Estate Center. All rights reserved. 3

Annual Summary The Texas housing market decelerated in with total sales rising just 1.7 percent. The modest increase, however, pushed annual transactions (through Multiple Listing Services) to a record 343,833. Sustained growth in the national and state economies supported housing demand, but low listings inventories and waning affordability continued to pinch the lower price cohorts. Builders ramped up construction activity, but supply constraints persisted for homes priced less than $300,000, stressing more than two-thirds of the statewide market. Single-family sales are projected to slow again in 2019 before bouncing back in 2020. This cooling period is necessary after multiple years of explosive growth, allowing the market to adjust in areas of extreme shortages and rapid affordability declines. The median price per square foot should still increase about 4 percent across the major metropolitan areas. Texas healthy economy and labor market bodes well for housing demand, but slowing global growth and volatile oil prices present substantial challenges as the expansion continues. The Real Estate Center s single-family outlook for the state and the major MSAs is summarized as follows: Single-Family Forecast (%) 2019 (%) 2020(%) 1991- (%) Texas Housing permits 5.7 2.1 1.0 5.4 Sales 1.8 0.9 3.4 4.6 Price per square foot 4.4 4.0 4.7 4.8 Austin Housing permits 9.6 0.2 1.3 11.4 Sales 2.3 2.8 3.0 6.1 Price per square foot 4.5 4.0 5.8 6.3 Dallas-Fort Worth Housing permits 5.3 3.3 0.6 4.7 Sales -2.2 0.3 2.4 5.0 Price per square foot 5.3 4.4 4.9 4.6 Houston Housing permits 4.1 0.1 3.0 5.9 Sales 3.5 1.1 4.3 3.9 Price per square foot 3.1 4.6 5.1 5.3 San Antonio Housing permits 9.7 10.5 1.4 7.9 Sales 2.3-1.0 6.7 6.8 Price per square foot 5.2 3.9 4.5 4.6 Note: Estimated with October/December data. housing permits are forecasted. 4

Supply* The Texas Residential Construction Cycle (Coincident) Index, which measures current construction activity, accelerated 7.2 percent annually as industry employment and wages elevated. Momentum, however, moderated toward the end of the year. This balancing may continue into 2019, as indicated by the Texas Residential Construction Leading Index. Rising interest rates and a slowdown in the multifamily sector weigh on the 2019 outlook, but overall market fundamentals remain solid. In response to supply shortages, developers accelerated activity at the earliest stage of the construction cycle. The number of new vacant developed lots (VDLs) in the Texas Urban Triangle surpassed 96,000 for the first time since 2007, with record levels for those developed for homes in the $200,000 to $400,000 range. Dallas-Fort Worth (DFW) accounted for nearly half of the total increase, posting positive growth for the eighth consecutive year. Lot development in the remaining major metros balanced around their respective five-year averages, with Houston and San Antonio well below pre-recessionary levels. Lot development led to increases in single-family housing construction permits, with year-end projections hovering around 120,000 as December data become available. The tally through November already surpassed annual totals in all major metros. Dallas was the exception but is projected to close the year with a decade-high above 25,000 permits. North Texas development continued to stretch into the suburbs, supporting permit growth in Fort Worth. Permit issuance was particularly strong in Houston and Austin with totals projected above 40,000 and 16,000, respectively. Total Texas housing starts accelerated to start the year but hit a slow patch during the summer as the multifamily sector adjusted. In the single-family sector, however, housing starts trended positively with growing momentum in the supply-chain. More than 93,000 single-family homes broke ground in the major metros, 70 percent of which were in DFW and Houston. Austin and San Antonio started more than 16,200 and 11,700 homes, respectively, outpacing the larger metros in per capita terms. A total of $3.3 billion poured into Texas single-family market amid economic and population growth. Single-family private construction values posted annual increases in most of the major metros after accounting for inflation. Houston posted the largest growth at 8.2 percent due to residual stimulus from Hurricane Harvey rebuilding efforts and higher oil prices in the first half of the year. DFW construction values, however, declined despite positive movements in supply factors. Supply-side growth and softer demand snapped a seven-year decline in Texas total months of inventory (MOI), settling at an annual average of 3.3 months. The MOI bottomed out in just above three months and methodically inched upward for most of the past year. That said, more * All measurements are annually unless stated otherwise. 5

progress is necessary to balance the market. About six months of inventory is considered the equilibrium level. A steady stream of new listings hitting the market, particularly in the $200,000 - $400,000 range, should slowly chip away at housing shortages. In percentage terms, the uptick in MOI was most pronounced in North Texas due to a multiyear stint below two months. The supply of available listings relaxed to 2.7 and 2.1 months in Dallas and Fort Worth, respectively. Constraints improved marginally in Austin to 2.3 MOI. Conditions were slightly better in Houston and San Antonio with MOI rising to 3.5 and 3.2 months, respectively. Nevertheless, all of the major markets continue to be supply constrained. Demand A record 343,833 Texas homes sold through Multiple Listing Services in, but the rate of increase slowed from 4.1 to 1.7 percent. The bottom end of the market (consisting of homes priced less than $200,000) continued to drag on activity due to a lack of supply and rising construction costs. At the metropolitan level, Houston led the major metros with 3.4 percent growth, followed by San Antonio and Austin at 2.9 and 1.4 percent, respectively. The North Texas market, however, adjusted to massive home-price appreciation over the past five years. Dallas and Fort Worth sales fell 3.0 and 1.2 percent, respectively, with most of the decline occurring at the lower end of the market. Despite slower sales activity, the national and statewide economic expansion maintained healthy levels of housing demand. The average days on market (DOM) balanced at 58 days as homes continued to sell at a rapid clip. Austin and Houston homes sold similarly at an average of 56 days, while San Antonio s DOM ticked up to 57 days. Housing demand softened in North Texas but remained strong relative to the rest of the state. Dallas homes averaged 44 days on the market, a week longer relative to. On the other hand, Fort Worth homes averaged 39 DOM over the past three years. Rising interest rates weighed on housing demand throughout most of the year. The ten-year U.S. Treasury bond yield averaged 2.9 percent, its highest annual value since 2010, as markets juggled the combination of a strong U.S. economy but slower growth in Europe and China. The Federal Home Loan Mortgage Corporation s 30-year fixed-rate ticked up similarly above 4.5 percent. Higher interest rates disproportionately affected refinance mortgage applications in Texas, which declined nearly 40 percent over the year. Mortgage applications for new-home purchases, however, increased nearly 10 percent relative to. Prices Softer sales activity and improvements in supply moderated home-price gains after substantial appreciation since the Great Recession. The Texas median home price increased 4.5 percent year 6

over year (YOY), as opposed to 7.2 percent average annual growth between and. Although the rate of increase decelerated, the median price still jumped $10,000 to $231,660. The median home price in Austin ($304,900) and Dallas ($284,770) remained well above the rest of the state, rising 4.1 and 3.2 percent annually. The Fort Worth median increased $13,540 to just shy of the statewide level. Houston maintained annual growth over 3 percent for the second straight year, pushing the median above $234,350. San Antonio was the only major metro to experience median home-price acceleration, rising 5.4 percent to $221,500. The Texas Repeat Sales Index is a better measure of changes in single-family home values and provides insight into how the typical Texas home prices evolve. The index corroborated 4.5 percent price growth statewide but suggested less appreciation in the major metros. The Austin and San Antonio indices decelerated to 3.8 and 4.1 percent YOY growth, respectively, while the Houston index rose 2.7 percent. Dallas observed the largest deceleration with annual growth slowing from 6.1 to 3.9 percent. In Fort Worth, the repeat sales index indicated 5.5 percent annual appreciation as opposed to 6.2 percent growth in the median price. Despite slower price growth, home-price appreciation outpaced wages and weighed on housing affordability. Texas affordability remained favorable compared with other states but continued a steady decline that began in. The Texas Housing Affordability Index fell to 1.4, indicating that a family earning the median income could afford a home 40 percent more than the median sale price. For much of the past decade, Texans enjoyed the capability of affording homes priced twice that of the median. Fort Worth and Houston tied for the highest affordability among major metros at 1.5 but suffered substantial declines over the past year. The San Antonio index hovered slightly above the state level but trended downward. In Austin and Dallas, the affordability index dropped to 1.3. Decreased housing affordability presents a growing challenge to Texas demographic advantages that have supported its economic prosperity over the past decade. 7

Supply 110 Residential Construction Coincident Indicator (Index Jan 2007 = ) TX Coincident Index US Coincident Index TX Leading Index 90 70 60 50 40 Jan-07 Dec-07 Nov-08 Oct-09 Sep-10 Aug-11 Jul-12 Jun-13 May-14 Apr-15 Mar-16 Feb-17 Jan-18 Dec-18 Note: Trend-Cycle Component. November and December data for the Texas Leading Index are unavailable due to the government shutdown. Sources: Real Estate Center at Texas A&M University and Federal Reserve Bank of Dallas 60,000 50,000 40,000 New Vacant Developed Lots (Inventory) Austin Houston Dallas-Fort Worth San Antonio 30,000 20,000 10,000 0 2004 2005 2006 2007 2008 2009 2010 Note: Annual sum. Source: Metrostudy 8

110 Single-Family Housing Construction Permits (Index 2007 = ) United States Texas 90 70 60 50 40 30 20 Jan-07 Aug-07 Mar-08 Oct-08 May-09 Dec-09 Jul-10 Feb-11 Sep-11 Apr-12 Nov-12 Jun-13 Jan-14 Aug-14 Mar-15 Oct-15 May-16 Dec-16 Jul-17 Feb-18 Sep-18 Note: Trend-Cycle Component. December data are unavailable due to the government shutdown. Sources: U.S. Census Bureau and Real Estate Center at Texas A&M University 160 140 120 Single Family Units 5+ Family Units Texas Housing Construction Permits (Index 2007 = ) 2-4 Family Units 60 40 20 0 Jan-07 Aug-07 Mar-08 Oct-08 May-09 Dec-09 Jul-10 Feb-11 Sep-11 Apr-12 Nov-12 Jun-13 Jan-14 Aug-14 Mar-15 Oct-15 May-16 Dec-16 Jul-17 Feb-18 Sep-18 Note: Trend-Cycle Component. December data are unavailable due to the government shutdown. Sources: U.S. Census Bureau and Real Estate Center at Texas A&M University 9

140 120 Major Metros Single-Family Housing Construction Permits (Index 2007 = ) Austin-Round Rock Dallas-Plano-Irving Fort Worth-Arlington Houston-The Woodlands-Sugar Land San Antonio-New Braunfels 60 40 20 Jan-07 Aug-07 Mar-08 Oct-08 May-09 Dec-09 Jul-10 Feb-11 Sep-11 Apr-12 Nov-12 Jun-13 Jan-14 Aug-14 Mar-15 Oct-15 May-16 Dec-16 Jul-17 Feb-18 Sep-18 Note: Trend-Cycle Component. December data are unavailable due to the government shutdown. Fort Worth is missing data for Somervell County. Sources: U.S. Census Bureau and Real Estate Center at Texas A&M University 110 Housing Starts (Index 2007 = ) United States Texas 90 70 60 50 40 30 Jan-07 Aug-07 Mar-08 Oct-08 May-09 Dec-09 Jul-10 Feb-11 Sep-11 Apr-12 Nov-12 Jun-13 Jan-14 Aug-14 Mar-15 Oct-15 May-16 Dec-16 Jul-17 Feb-18 Sep-18 Note: Trend-Cycle Component. December data are unavailable due to the government shutdown. Sources: U.S. Census Bureau and Bank of Tokyo-Mitsubishi UFJ 10

1 160 140 120 60 40 Major Metros Housing Starts (Index 2003 = ) Austin Houston Dallas-Fort Worth San Antonio 20 2003 2004 2005 2006 2007 2008 2009 2010 Note: Annual sum. Source: Metrostudy 200 1 160 140 120 Texas Total New Private Single-Family Construction Value (Index 2008 = ) Austin-Round Rock Dallas-Fort Worth-Arlington Houston-The Woodlands-Sugar Land San Antonio-New Braunfels 60 2008 2009 2010 Note: Annual sum. Source: Dodge Analytics 11

10 9 8 Total Months of Inventory (Months) United States Texas 7 6 5 4 3 Jan-07 Dec-07 Nov-08 Oct-09 Sep-10 Aug-11 Jul-12 Jun-13 May-14 Apr-15 Mar-16 Feb-17 Jan-18 Dec-18 Note: Trend-Cycle Component. Months of inventory for the United States is estimated using weights for all existing homes and new single-family homes; new nonsingle-family homes are not included. Texas includes all existing and new homes. December data for the U.S. Months of Inventory are unavailable due to the government shutdown. For more information, see Months of Inventory. Sources: U.S. Census Bureau, National Association of Realtors, and Real Estate Center at Texas A&M University 18 16 14 12 Texas Months of Inventory by Price Cohort (Months) $0-$199,000 $200,000-$299,999 $300,000-$399,999 $400,000-$499,999 $500,000+ 10 8 6 4 2 Jan-11 Jun-11 Nov-11 Apr-12 Sep-12 Feb-13 Jul-13 Dec-13 May-14 Oct-14 Mar-15 Aug-15 Jan-16 Jun-16 Nov-16 Apr-17 Sep-17 Feb-18 Jul-18 Dec-18 Note: Trend-Cycle Component. 12

10 9 8 7 Texas Months of Inventory by Price Cohort (December ) 9.2 6 5 4 3 2.9 3.4 4.4 5.2 2 1 0 $0 - $200K $200K - $300K $300K - $400K $400K - $500K $500K+ Note: Seasonally adjusted. 9 8 7 Texas Existing and New Home Months of Inventory (Months) Existing Home Months of Inventory New Home Months of Inventory 6 5 4 3 2 Jan-11 Jun-11 Nov-11 Apr-12 Sep-12 Feb-13 Jul-13 Dec-13 May-14 Oct-14 Mar-15 Aug-15 Jan-16 Jun-16 Nov-16 Apr-17 Sep-17 Feb-18 Jul-18 Dec-18 Note: Trend-Cycle Component. 13

9 8 7 6 5 4 Major Metros Existing Home Months of Inventory (Months) Austin-Round Rock Dallas-Plano-Irving Fort Worth-Arlington Houston-The Woodlands-Sugar Land San Antonio-New Braunfels 3 2 1 Jan-11 Jun-11 Nov-11 Apr-12 Sep-12 Feb-13 Jul-13 Dec-13 May-14 Oct-14 Mar-15 Aug-15 Jan-16 Jun-16 Nov-16 Apr-17 Sep-17 Feb-18 Jul-18 Dec-18 Note: Trend-Cycle Component. 6.5 6.0 Major Metros New Home Months of Inventory (Months) Austin-Round Rock Fort Worth-Arlington San Antonio-New Braunfels Dallas-Plano-Irving Houston-The Woodlands-Sugar Land 5.5 5.0 4.5 4.0 3.5 3.0 Jan-11 Jun-11 Nov-11 Apr-12 Sep-12 Feb-13 Jul-13 Dec-13 May-14 Oct-14 Mar-15 Aug-15 Jan-16 Jun-16 Nov-16 Apr-17 Sep-17 Feb-18 Jul-18 Dec-18 Note: Trend-Cycle Component. 14

Demand 130 120 United States Housing Sales (Index 2007 = ) Texas 110 90 70 2007 2008 2009 2010 Note: Annual sum. Sales for the United States include all existing homes and new single-family homes; new non-single-family homes are not included. Texas includes all existing and new homes. December data for the United States are forecasted due to the government shutdown. For more information see Housing Sales. Sources: U.S. Census Bureau, National Association of Realtors, and Real Estate Center at Texas A&M University 1 160 140 120 60 40 Major Metros Housing Sales (Index 2003 = ) Austin Houston Dallas-Fort Worth San Antonio 20 2003 2004 2005 2006 2007 2008 2009 2010 Note: Annual sum. Source: Metrostudy 15

400 350 300 Texas Housing Sales by Price Cohort (Index Jan = ) $0-$199,000 $200,000-$299,999 $300,000-$399,999 $400,000-$499,99 $500,000+ Total 250 200 150 50 Note: Annual sum. 110 Texas Homes Days on Market (Days) 90 70 60 Existing Home Days on Market New Home Days on Market 50 Jan-11 Jun-11 Nov-11 Apr-12 Sep-12 Feb-13 Jul-13 Dec-13 May-14 Oct-14 Mar-15 Aug-15 Jan-16 Jun-16 Nov-16 Apr-17 Sep-17 Feb-18 Jul-18 Dec-18 Note: Trend-Cycle Component. For single-family homes. 16

Texas Home Days on Market by Price Cohort (Days) 135 125 115 105 $0-$199,000 $200,000-$299,999 $300,000-$399,999 $400,000-$499,99 $500,000+ 95 85 75 65 55 45 Jan-11 Jun-11 Nov-11 Apr-12 Sep-12 Feb-13 Jul-13 Dec-13 May-14 Oct-14 Mar-15 Aug-15 Jan-16 Jun-16 Nov-16 Apr-17 Sep-17 Feb-18 Jul-18 Dec-18 Note: Trend-Cycle Component. For single-family homes. 105 95 85 75 65 55 Major Metros Existing Homes Days on Market (Days) Austin-Round Rock Dallas-Plano-Irving Fort Worth-Arlington Houston-The Woodlands-Sugar Land San Antonio-New Braunfels 45 35 25 Jan-11 Jun-11 Nov-11 Apr-12 Sep-12 Feb-13 Jul-13 Dec-13 May-14 Oct-14 Mar-15 Aug-15 Jan-16 Jun-16 Nov-16 Apr-17 Sep-17 Feb-18 Jul-18 Dec-18 Note: Trend-Cycle Component. For single-family homes. 17

130 120 110 Major Metros New Homes Days on Market (Days) Austin-Round Rock Fort Worth-Arlington San Antonio-New Braunfels Dallas-Plano-Irving Houston-The Woodlands-Sugar Land 90 70 60 Jan-11 Jun-11 Nov-11 Apr-12 Sep-12 Feb-13 Jul-13 Dec-13 May-14 Oct-14 Mar-15 Aug-15 Jan-16 Jun-16 Nov-16 Apr-17 Sep-17 Feb-18 Jul-18 Dec-18 Note: Trend-Cycle Component. For single-family homes. 7.00 6.00 30-Year Mortgage Rate and 10-Year Treasury Yield (Percent) Mortgage Bond 5.00 4.00 3.00 2.00 1.00 2007 2008 2009 2010 Note: Annual average. Sources: Federal Home Loan Mortgage Corporation and Federal Reserve Board 18

60 40 20 0-20 -40-60 Texas Mortgage Applications (Year-over-Year Percentage Change) Refinance Purchase - Jan-11 Jun-11 Nov-11 Apr-12 Sep-12 Feb-13 Jul-13 Dec-13 May-14 Oct-14 Mar-15 Aug-15 Jan-16 Jun-16 Nov-16 Apr-17 Sep-17 Feb-18 Jul-18 Dec-18 Source: Mortgage Bankers Association Prices Real Estate Center Repeat Sales Housing Price Index (Year-over-Year Percentage Change) 10 9 8 7 6 5 4 3 2 1 0 Texas Austin Dallas Fort Worth Houston San Antonio I II III IV I II III IV I II III IV I II III IV I II III IV 14 15 16 17 18 Note: The Repeat Sales Housing Price Index tracks real home price appreciation for residential single-family homes. 19

295,000 275,000 255,000 Texas Existing and New Home Median Sales Price ($) Existing Median Price New Median Price 235,000 215,000 195,000 175,000 155,000 135,000 Note: Annual average. For single-family homes. 320,000 300,000 2,000 260,000 240,000 220,000 Major Metros Existing Home Median Sales Price ($) Austin-Round Rock Dallas-Plano-Irving Fort Worth-Arlington Houston-The Woodlands-Sugar Land San Antonio-New Braunfels 200,000 1,000 160,000 140,000 120,000 Note: Annual average. For single-family homes. 20

355,000 Major Metros New Home Median Sales Price ($) 335,000 315,000 295,000 275,000 255,000 235,000 215,000 195,000 175,000 Austin-Round Rock Dallas-Plano-Irving Fort Worth-Arlington Houston-The Woodlands-Sugar Land San Antonio-New Braunfels Note: Annual average. For single-family homes. 130 120 110 Existing Home Median Price PSF New Home Median Price PSF Texas Home Median Price Per Square Foot ($) 90 70 Note: Annual average. For single-family homes. 21

160 150 140 130 120 110 Major Metros Existing Home Median Price Per Square Foot ($) Austin-Round Rock Dallas-Plano-Irving Fort Worth-Arlington Houston-The Woodlands-Sugar Land San Antonio-New Braunfels 90 70 60 Note: Annual average. For single-family homes. 150 140 130 120 Major Metros New Home Median Price Per Square Foot ($) Austin-Round Rock Dallas-Plano-Irving Fort Worth-Arlington Houston-The Woodlands-Sugar Land San Antonio-New Braunfels 110 90 Note: Annual average. For single-family homes. 22

0.98 Texas Home Sale Price to List Price Ratio (%) 0.97 0.96 0.95 0.94 0.93 0.92 Existing Home Sale-to-List Price Ratio Home Sale-to-List Price Ratio 0.91 Note: Annual average. For single-family homes. 0.98 Major Metros Existing Home Sale Price to List Price Ratio (%) 0.97 0.96 0.95 0.94 0.93 0.92 Austin-Round Rock Dallas-Plano-Irving Fort Worth-Arlington Houston-The Woodlands-Sugar Land San Antonio-New Braunfels 0.91 Note: Annual average. For single-family homes. 23

0.99 Major Metros New Home Sale Price to List Price Ratio (%) 0.98 0.97 0.96 0.95 0.94 0.93 Austin-Round Rock Dallas-Plano-Irving Fort Worth-Arlington Houston-The Woodlands-Sugar Land San Antonio-New Braunfels 0.92 Note: Annual average. For single-family homes. 2.40 2.20 2.00 United States Texas Real Estate Center Housing Affordability Index (Ratio) 1. 1.60 1.40 1.20 1.00 2006 2007 2008 2009 2010 Note: Annual rate. The Texas Housing Affordability Index (HAI) reflects the relationship between the current median family income in a locale and the computed amount required to purchase a median priced home. Fourth-quarter median price data for the United States is forecasted. 24

3.00 Real Estate Center Major Metros Housing Affordability Index (Ratio) 2. 2.60 2.40 2.20 2.00 1. 1.60 1.40 1.20 1.00 Austin-Round Rock Fort Worth-Arlington San Antonio-New Braunfels Dallas-Plano-Irving Houston-The Woodlands-Sugarland Note: Annual rate. The Texas Housing Affordability Index (HAI) reflects the relationship between the current median family income in a locale and the computed amount required to purchase a median priced home. 25

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