Dallasites need to make more money to buy a home
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Dallasites have to earn 39.5% more than a year ago to afford the region's median-value home, per the latest analysis by real estate company Redfin.
The big picture: The income needed to afford a home has soared as limited inventory and strong demand drove up sale prices, and surging mortgage rates have made home loans more expensive.
Why it matters: Dallas-Fort Worth incomes are not increasing at that pace, further constricting entry into the North Texas housing market for many people.
By the numbers: In March 2021, you had to earn at least $55,741 to afford the median home for sale in the Dallas metro area, Redfin found.
- This March, you needed to make $77,768.
- The monthly mortgage after 5% down for a median sales priced home of $420,000 jumped from $1,394 to $1,944, per Redfin.
Of note: A monthly mortgage payment is considered affordable if homebuyers spends no more than 30% of their income on housing.
Meanwhile, wages in North Texas only grew 5.4% over the same period, according to the Bureau of Labor and Statistics.
- Median pre-tax income in Dallas in 2021 was $50,000, per a recent Zillow study.
Zoom out: Across the U.S., buyers need 34% more income to afford a home, Redfin found.