A recent report by Zillow revealed the income needed to comfortably afford a home across major cities in the U.S. In Dallas, residents must make an average of $121,398.
In 2020, a U.S. family bringing in $59,000 per year could easily cover the monthly mortgage of an average American home, allocating just 30% of their income with a 10% down payment. This figure fell below the U.S. median income of roughly $66,000, indicating that a majority of households in America had the financial capacity to pursue homeownership.
However, the current scenario paints a different picture. With the approximate cost of $106,500 required to comfortably afford a typical home, it surpasses the annual earnings of a typical American household, estimated at about $81,000. But places like Dallas require a much higher income.
In Dallas, residents must make $53,679 more than in 2020. Zillow estimates that the average person in Dallas will have to save for 8.3 years to afford a downpayment and the buyer can expect a mortgage of about $2,340.
"Housing costs have soared over the past four years as drastic hikes in home prices, mortgage rates and rent growth far outpaced wage gains," said Orphe Divounguy, a senior economist at Zillow. "Buyers are getting creative to make a purchase pencil out, and long-distance movers are targeting less expensive and less competitive metros. Mortgage rates easing down has helped some, but the key to improving affordability long term is to build more homes."
Local Profile previously reported Dallas-Fort Worth ranked second in the U.S. market with the biggest increase in year-over-year sales percentage. Home sales totaled 5,208 in January 2024, up from 4,560 homes sold in January 2023 resulting in a 14.2% increase.
In January 2024, the number of newly listed homes surged by 66.3% compared to December 2023 and 21.5% compared to January 2023 across the 50 surveyed metro areas.
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