Tampa renters can't afford starter homes

Tampa renters on average earned just 54% 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 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: Renters in Tampa earned a household income of $40,006 on average, while the income needed to cover a mortgage was $73,626, according to the study.

• In September, a typical Tampa starter home cost $279,676, the study found, analyzing Zillow data.

Zoom out: Following interest rate hikes this year, 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: Mortgage rates are starting to decline, Axios' Emily Peck reports, and the Federal Reserve is expected to slow its aggressive rate-hiking campaign.

• The decline isn't expected to fully revive the real estate market, but experts say we could see some improvements in affordability next year.

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