A significant shift is underway in the Texas residential real estate market, with homebuyers demonstrating a pronounced preference for newly constructed properties at more than double the national rate. This trend, alongside changing demographics and seller behaviors, paints a detailed picture of the state’s housing landscape over the past year.
According to the 2025 Texas Homebuyers and Sellers Report, released by Texas REALTORS® on May 28, 2025, and covering residential real estate transactions conducted between July 2023 and June 2024, a striking 30% of Texas homebuyers chose newly built homes. This figure stands in stark contrast to the national average, highlighting a unique dynamic within the state’s market.
A Shift Towards New Construction
The preference for new construction in Texas at 30% significantly outpaces the national rate, which is approximately half that figure. Market analysts suggest this trend may be influenced by factors such as limited inventory of existing homes, builder incentives, and the appeal of modern features and energy efficiency in new builds. The substantial proportion underscores the critical role of homebuilders in meeting demand across the state.
Changing Demographics Reshape Buyer Profile
The report also reveals notable shifts in the profile of the typical Texas homebuyer. For the period between July 2023 and June 2024, the proportion of homes purchased by first-time buyers in Texas reached a record low, accounting for only 20% of transactions. This is four percentage points lower than the national rate of 24% for first-time buyers, indicating potential affordability challenges or other market dynamics affecting entry-level purchasers in the state.
Simultaneously, the median age of Texas homebuyers reached a record high of 58. This increase suggests that a larger share of the market is comprised of older buyers, potentially those moving from previous homes or relocating. This demographic shift has implications for the types of homes and features in demand.
The Rise of Multi-Generational Living
A new high was also observed in the number of multi-generational home purchases. The report indicates that 24% of Texas buyers intended to share their newly purchased homes with adult relatives. This represents a significant increase compared to the national figure of 17% for multi-generational households. The growing trend towards multi-generational living may be driven by economic considerations, caregiving needs, or cultural preferences, influencing demand for larger homes or properties with distinct living spaces.
Seller Behavior and Market Speed
The report provided insights into seller motivations and timelines as well. Among Texas sellers, 49% reported they were in a position to wait for the right offer for their home. A further 37% indicated they could sell within a reasonable timeframe, while only 15% stated they needed to sell as soon as possible. These figures suggest that a majority of sellers had some flexibility in their sale timeline, potentially giving them greater negotiating power.
Despite some seller flexibility, the market demonstrated considerable speed for many transactions. Notably, 31% of sellers had their homes on the market for just one week or less before receiving an offer. This indicates that well-priced and well-located properties continued to attract swift buyer interest during the period covered by the report.
Regarding the primary reasons for selling, the report found that the most cited motivation by Texas sellers was to be closer to friends and family. This highlights the importance of personal connections and support networks in relocation decisions across the state.
Expert Commentary
Commenting on the findings, Christy Gessler, Chairman of Texas REALTORS®, noted that the report provides crucial data for understanding the evolving Texas housing market.
“The trends highlighted in this report, particularly the strong preference for new construction and the shifts in buyer demographics, offer valuable insights for industry professionals and policymakers alike,” stated Gessler. “Understanding who is buying, what they are buying, and why sellers are moving is essential for navigating the complexities of the market.”
Conclusion
The data from the 2025 Texas Homebuyers and Sellers Report underscores a dynamic and changing housing market in Texas. The overwhelming preference for new construction, coupled with an aging buyer demographic, a decline in first-time buyers, and a notable increase in multi-generational households, points to significant shifts in demand and market composition. While many sellers exhibited flexibility, a substantial portion of homes continued to sell very quickly, reflecting ongoing demand. These trends are expected to shape the future trajectory of the Texas residential real estate landscape.
