Chicago renters can't afford starter homes
Chicago renters earned just 69% of the income they would need to afford a starter home, per October figures, Axios' Sami Sparber reports.
- Researchers at real estate website Point2Homes considered "starter homes" to be properties valued in the lower one-third of all available homes for sale.
Why it matters: Higher mortgage rates and housing costs are still keeping homeownership out of reach from many first-time buyers.
By the numbers: Renters here earned a household income of $43,591 on average in October, while the income needed to cover a mortgage was $63,440.
- In September, a typical Chicago starter home cost $204,696, according to the study.
Zoom out: Following this year's interest rate hike, renter households in 15 of the 50 largest U.S. cities made less than half the income needed to buy one of the cheapest homes in town.
The big picture: Across the U.S., the share of first-time home buyers has shrunk to a record low, according to the National Association of Realtors.
- First-time buyers made up 26% of all buyers in 2022, down from 34% last year, the group found.
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