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Credit score change may help millions buy homes
FOX 26 Consumer Reporter Heather Sullivan has some smart sense about what it could mean for some potential home owners.
HOUSTON - Homebuyers on average need to earn six figures to afford a typical home in the U.S., according to Redfin. However, the outlook is a little better for those looking to buy in Houston.
According to the real estate company, the nationwide average annual salary Americans need to buy a median-priced home rose 45.6% from a year ago to $107,281 this October.
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Their data shows that the median home price in the U.S. also rose from $378,837 in October 2021 to $398,687 in October of this year.
The data shows the average monthly mortgage payment rose from $1,842 to $2,682 in that same time frame.
For the analysis, the monthly mortgage payment was considered affordable if a homeowner was spending no more than 30% of their income on housing.
File photo. (Photo by BRENDAN SMIALOWSKI/AFP via Getty Images) (File photo. (Photo by BRENDAN SMIALOWSKI/AFP via Getty Images))
In fact, Redfin’s analysis shows that homebuyers in at least 45 metro areas need to earn at least $100,000 a year to afford a median-priced home.
In Texas, that includes Dallas and Austin where you need to earn $113,016 and $128,354, respectively, to afford a median-priced home, according to their data.
However, there are some metro areas in Texas where you can afford to buy a house even in you earn less than $100,000 – including Houston.
According to Redfin, homebuyers in Houston need to earn $88,798 to afford a median-priced home, which was $330,000 in October. The required salary increased 49.7% from October 2021.
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Their data shows that the average monthly mortgage payment in Houston increased from $1,483 last October to $2,220 this October.
Of the other Texas metro areas included in the analysis, McAllen had the lowest required salary at $60,544. Homebuyers need to make at least $64,580 in El Paso and $87,453 in San Antonio.
Click here to see Redfin's full analysis.