Columbus renters can't afford starter homes

Columbus renters earned 80% of the income they would need to afford a starter home in October 2022.

• An analysis by real estate website Point2Homes considered "starter homes" 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 for many first-time buyers.

By the numbers: Renters in Columbus earned an average household income of $41,628, while the income needed to cover a mortgage was $51,743, according to the study.

• In September, a typical Columbus starter home cost $167,046, per Zillow data.

Zoom out: Following October'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, per the analysis.

Meanwhile, those who do make enough now face some of the stiffest competition at that price point, according to Zillow.

The big picture: The share of first-time home buyers across the U.S. 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% in 2021.

Go deeper: 3 reasons it's getting harder for renters to buy