Houston renters can't afford starter homes
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Houston renters earned 69% 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 all available homes for sale.
Why it matters: Higher mortgage rates and housing costs are keeping homeownership out of the reach of many first-time buyers.
By the numbers: Renters in Houston earned a household income of $41,364 on average, while the income needed to cover a mortgage was $60,186, according to the study.
- In September, a typical Houston starter home cost $196,661, 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.