According to an analysis from real estate website Point2Homes, Houston renters do not make enough money to purchase starter homes.
For the study, Point2Homes considered properties priced in the lower third of home inventory. In September, homes at this price point cost an average of $196,661. Point2Homes found that Houston renters earn only 69% of the total income needed to be able to afford one of these starter homes.
Specifically, renters in Houston earn an average household income of $41,364. Income needed to afford the mortgage on a starter home is approximately $60,186.
This trend continues nationwide: across the U.S., renters in only four metros studied earned enough to afford starter homes in their area: Detroit, Michigan; Memphis, Tennessee; Tulsa, Oklahoma; and Oklahoma City.