Buying a home requires $63K more income than renting in Dallas-Fort Worth
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Homebuyers in Dallas-Fort Worth need to earn over $63,000 more a year than renters to afford their monthly housing payments, according to a recent Redfin report.
Why it matters: A "triple whammy" of rising home prices, high mortgage rates and a shortage of houses for sale is making it harder for renters to make the leap to homeownership, the report says.
State of sale: The household income required to afford a median home in North Texas has increased nearly 3% since last year. The income needed to pay the median rent has dropped close to 6% in the same time period, per Redfin.
- The median sale price in D-FW was $395,565, accounting for homes sold between December and February.
- The median rent for the region is $1,449.
The big picture: Nationally, homebuying costs are climbing faster than rents, which have softened due to an influx of newly built apartments.
- The median home price recently rose 4.5% from a year earlier to around $423,900, per Redfin. Mortgage rates hovered near 6.5%.
- And the median monthly rent was up 0.2% to roughly $1,600.
The fine print: Redfin's analysis assumes a homebuyer or renter spends no more than 30% of their income on monthly payments.
Zoom in: Incomes and housing costs vary widely across the metro area.
- For example, Collin County's median household income is the highest in the region at $119,000, per U.S. Census Bureau data.
- A median one-bedroom apartment in Frisco costs $1,630 a month, per a new Zumper report.
- Dallas County's median income is $74,000, and a median one-bedroom apartment in Dallas costs $1,430.
What's next: President Trump's tariffs are expected to raise construction costs for new houses, another hurdle for aspiring homeowners managing tight finances.