Dallas renters can't afford starter homes

Dallas renters earned 68% of the income they would need to afford a starter home in October, according to an analysis by real estate website Point2Homes.

• Researchers considered "starter homes" properties valued in the lower third of available homes for sale.

Why it matters: Higher mortgage rates and housing costs are keeping homeownership out of reach for many first-time buyers.

By the numbers: Renters in Dallas earned an average household income of $45,047, while the income needed to cover a mortgage was $66,243, according to the study.

• In September, a typical Dallas starter home cost $221,140, the study found, analyzing 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.

The big picture: Across the U.S., the share of first-time homebuyers 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.

What we're watching: Dallas-Fort Worth home values would have to fall 38% to return to historical affordability norms, per a recent Zillow report.

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