AUSTIN, Texas — A new study by real estate listing website Point2 says Austin ranks 10th for least affordable starter homes. That's because of the large gap between income and the amount needed to cover mortgage payments.
Point2 reports that the average renter household income in Austin sits at just under $56,000. That's almost $74,000 less than the income required to purchase a starter home, at about $130,000.
The study said renters in 15 of the 50 largest U.S. cities earn less than half of what they’d need to become homeowners The biggest gaps between income and homeownership are in Los Angeles, New York City and Long Beach, California.
Only four of the largest cities in the U.S. – Detroit; Tulsa, Oklahoma; Memphis, Tennessee; and Oklahoma City – were ranked as places where renters can afford a starter home.
The Austin Board of Realtors recently reported a 50% decline in home sales for the month of November.