plan ahead

Houston first-time buyers must earn this much to afford a starter home in 2023

home interior kitchen dining 6520 Summer Pass Dr. houston

A new study reveals what first-time home buyers need to purchase homes like this, which cost around $247,000.

Photo via HAR

A new income analysis by online real estate brokerage company Redfin has revealed just how much money a potential homeowner needs to make in 2023 to afford a "starter home" in Houston. Lately, home ownership is a concept that's becoming seemingly less attainable with rising mortgage rates and increased competition among buyers.

The report revealed that first-time homebuyers need to earn $57,513 annually to afford home in Houston this year, which is 13.9 percent more income than what was required in 2022.

It's also $6,893 below the national average. According to Redfin, the average salary needed for a typical starter home in the United States is $64,403, about 13 percent more than a year ago.

These findings further confirm that affordability is one of the biggest struggles for potential buyers in the current real estate market. Median sale prices for starter homes in Houston are sitting at $217,000, and median mortgage payments are about $1,438 a month, the report said.

Redfin senior economist Sheharyar Bokhari said in the report that it's a "wild goose chase" for homebuyers seeking their first home in the current market.

"The most affordable homes for sale are no longer affordable to people with lower budgets due to the combination of rising prices and rising rates," said Bokhari. "That’s locking many Americans out of the housing market altogether, preventing them from building equity and ultimately building lasting wealth. People who are already homeowners are sitting pretty, comparatively, because most of them have benefited from home values soaring over the last few years."

Bokhari predicted the wealth gap between current and potential owners could become "even more drastic" if current trends continue.

Buyers looking elsewhere in the state might find some success. Even though the income necessary to afford a San Antonio home has risen by 18.7 percent, that only amounts to $55,657.

A first-time homebuyer would need to make $64,933 to afford a home in Fort Worth, which is 14.4 percent more than in 2022. In Dallas, potential homeowners saw a 10.6 percent increase in income needed to afford a home, making it the city with the second highest income required out of all Texas cities in the report: $72,885.

Potential homeowners in Austin saw a 3.3 percent decrease in income needed to afford a home, but it's still the highest income required out of all Texas cities in the report: $92,057.

The full report can be found on redfin.com.

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rent affordability news

Houstonians need to make nearly $68,000 to afford rent in 2025

Photo courtesy of Dolce Midtown Apartments

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A new rental report from Zillow has revealed Houston renters need to make about 23 percent more money than they did five years ago in order to afford rent in 2025.

Zillow analysts examined the income needed to afford rent in 50 major U.S. metros, and determined rent prices in each city as of April 2025.

The average Houston renter needs to make $67,731 a year to afford living in the city, the report found. To afford rent for a single-family home, the income needed increases even further to $85,017.

Despite Houston's rising rent cost of living, it's still more affordable than many other cities. Nationally, the average income needed for someone to comfortably afford rent comes out to nearly $81,000. The study says that figure has increased nearly 35 percent since 2020.

"Housing costs have surged since pre-pandemic, with rents growing quite a bit faster than wages," said senior Zillow economist Orphe Divounguy. "This often leaves little room for other expenses, making it particularly difficult for those hoping to save for a down payment on a future home. High upfront costs are often overlooked, which can keep renters in their current homes."

Rent prices in Houston averaged $1,693 last month, which is less costly than the national average rent price of $2,024. Additionally, Houstonians are spending about 24 percent of their income on rent, while the typical American spends almost 30 percent of their income on rent.

Renters are also saving hundreds of dollars in comparison to those that own their homes, as a recent SmartAsset study discovered the median monthly housing costs for a Houston homeowner came out to $2,219.

At least we're not living on the East or West Coast, where eight U.S. metros require six-figure incomes to afford rent. Residents in San Jose, California need to make $136,532 a year to afford rent, the highest out of all 50 U.S. cities. Rent prices in San Jose came out to $3,413 in April.

Here's how much money renters need to afford living in other Texas metros, according to Zillow:

Dallas – $71,413
Austin – $68,840
San Antonio – $58,590

zillow housing report rent prices affordability houston