Phoenix renters can't afford starter homes

Phoenix renters earned 57% of the income needed 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 one-third of all available homes for sale.

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

By the numbers: The median household income among Phoenix renters was $43,866, but the income needed to cover a mortgage was $76,352, according to the study.

• In September, the median price for a starter home in Phoenix was` $304,227, 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 home buyers 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.

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