Monthly Update: Vehicle Sales

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Houston-area auto dealers sold 17,592 new vehicles in August ’21, a decrease of 8.3 percent from August ’20, according to TexAuto Facts, published by InfoNation, Inc. of Houston. Truck/SUV sales decreased 8.3 percent since August ’20 and car sales 8.1 percent.  

The average price paid for a new vehicle was $47,321 in August ’21, up 14.9 percent from $41,193 in August ’20. The truck/SUV segment—accounting for 77.9 percent of new vehicles sold during August—had an average sales price of $49,537, up 14.0 percent from $43,608 one year ago. The average price for a new car also increased, from $33,163 in August ’20 to $39,183 in August ’21.

Vehicle sales started to decline in early ’19 as the energy and construction industries began to shed jobs. Beginning in early ’20, as the COVID-19 pandemic began to impact the economy, many consumers postponed major purchases out of concern for losing their jobs. As the economy began to recover, those consumers were more comfortable spending savings accumulated during the pandemic, leading to record sales in spring and early summer of ’21. An ongoing global shortage of computer chips has slowed vehicle production. As the supply of new vehicles decreases, average prices of new autos continued to climb. In July, they reached all-time highs. Houston mirrored the nation in July as auto sales slipped compared to the previous three months.

Prepared by Greater Houston Partnership Research 

Elizabeth Balderrama
Manager, Research
713-844-3615
ebalderrama@houston.org

Patrick Jankowski, CERP
Senior Vice President, Research
713-844-3616
pjankowski@houston.org