Monthly Update: Vehicle Sales

The Partnership sends updates for the most important economic indicators each month. If you would like to opt-in to receive these updates, please click here.

Houston-area auto dealers sold 28,158 new vehicles in February ’22, a surge of 58.3 percent from February ’21, according to TexAuto Facts, published by InfoNation, Inc. of Houston. This rise in new vehicle sales is the highest since June ’21 and can be attributed to reduced vehicle sales during February ’21, when winter storm Uri struck Texas. Truck/SUV sales jumped 57.8 percent compared to February ’21 and car sales increased 60.0 percent. CNBC reports that “a combination of supply chain problems, pent-up demand and record-low vehicle inventory levels means many new cars and trucks, including EVs, are already spoken for before they reach dealers’ lots.”

The average price paid for a new vehicle was $49,955 in February ’22, up 16.8 percent from $42,778 in February ’21. The truck/SUV segment—accounting for 77.2 percent of new vehicles sold during February—had an average sales price of $52,601, up 15.9 percent from $45,394 one year ago. The average price for a new car increased from $33,944 in February ’21 to $40,410 in February ’22.

General year-over-year new auto sales have been declining since fall ’21. This decrease is due to the ongoing global shortage of computer chips which has slowed vehicle production, causing shortages at car dealerships. Nationwide, new vehicle inventory is down about 75.0 percent compared to pre-COVID numbers. As the supply of new vehicles decreases, average prices of new autos continue to climb. 
 

Prepared by Greater Houston Partnership Research 

Elizabeth Balderra
Manager, Research
713-844-3654
hduran@houston.org

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