Oct 30, 2023 - Real Estate

Austin income struggles to keep up with home costs

Illustration of a door knocker in the shape of a dollar sign

Illustration: Sarah Grillo/Axios

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.

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.

avatar

Get more local stories in your inbox with Axios Austin.

🌱

Support local journalism by becoming a member.

Learn more

More Austin stories

No stories could be found

Austinpostcard

Get a free daily digest of the most important news in your backyard with Axios Austin.

🌱

Support local journalism by becoming a member.

Learn more