This Is the Salary You Need To Afford an Average Home in 7 Texas Cities

While high housing prices have been a problem in many areas of the country, you can still find some relatively good deals in Texas. Some Texas cities like Austin have seen housing prices soar in recent years, but several cities still remain relatively affordable compared to the rest of the country.

Nationwide, the average homebuyer needs a household income of at least $114,627 to afford a median-price home, according to an analysis by Redfin last year. This number is based on keeping monthly mortgage payments — which averaged $2,866 in August 2023 — at no more than 30% of gross income.

However, this amount of income exceeds the nationwide average of approximately $75,000, based on the latest Census data from 2022. In Texas, average household incomes are almost exactly in line with the national average. And the good news is that the gap between these salaries and the amount needed to afford a home in several Texas cities isn’t as high as it is in many other parts of the country.

Here, we’ll explore how much you need to earn to afford an average home in these Texas cities.

Austin has the most expensive housing costs among large metros in Texas, with a median home sales price of $462,748, which equates to a median monthly mortgage payment of $3,155. So, you’d need a household income of at least $126,208 to afford that, according to Redfin.

Dallas might be known for its glitz, but it’s not as expensive on average compared to Austin. Here, you need a household income of at least $115,913 to afford the average monthly mortgage cost of $2,898.

If you want a slightly more affordable home than what you can find in Dallas, you might look at the nearby city of Fort Worth. Here, housing prices average $360,000, meaning you’d need to earn $98,185 to afford the median mortgage cost of $2,455.

Houston is the largest city in Texas, but it’s not the most expensive metro for housing in Texas. In fact, housing prices here sit below the national average. Still, to afford the $2,305 median monthly mortgage payment, you’d need to earn $92,185, which is more than the average household income in Texas.

San Antonio is another city that has housing prices lower than the national average, but you still would need an above-average income. Specifically, you’d need to earn at least $87,273 to afford the average mortgage of $2,182 per month.

An even more affordable city in Texas is El Paso. Here, you don’t have to earn as much as the statewide or national average. A salary of $69,548 means you could afford the monthly median mortgage payment of $1,739.

Lastly, McAllen is the most affordable Texas city within Redfin’s analysis of the 100 most populous metros in the US, based on available data. Here, you need a household income of $68,184 to afford the median mortgage payment of $1,705.

More From GOBankingRates

• Why Florida's Retirees Are Fleeing -- And Where They're Going Instead
• 6 Hybrid Vehicles To Stay Away From Buying
• Here's How to Add $200 to Your Wallet -- Just For Banking Like You Normally Would
• I Retired in My 70s: Here's My Monthly Budget