Austin income struggles to keep up with home costs
The median household income in greater Austin is $95,000 a year, but you'll need to earn $31,000 more to comfortably afford the median-priced home, per a new analysis from Redfin.
Why it matters: Americans haven't felt this discouraged about home buying in decades.
- The median home price in the Austin-Round Rock area was $452,080 in September, per the Austin Board of Realtors.
- Mortgage rates continue to hover around 8%.
Details: Figuring in a 20% downpayment and monthly mortgage bills, Austin homebuyers must earn $126,000 to afford a median-priced home, per Redfin.
- That necessary-income number is a 7.7% increase from roughly a year ago.
Yes, but: That's actually the smallest increase of all major U.S. metros.
- In Houston, Dallas and San Antonio, homebuyers need to earn roughly 15% more than they did a year ago.
Between the lines: Austin has seen some of the most dramatic drop-offs in sales prices nationally, which may explain why the necessary-income increase isn't as drastic as in some other cities.
Of note: A monthly mortgage payment is considered affordable if the homebuyer spends no more than 30% of their income on housing.
Zoom out: The median household income in the U.S. is $75,000 a year, but Americans need $115,000 annually to afford the typical home.
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