Your daily dose of Austin
Smartphone image
×
Make your inbox more Austin.
Local news and fun, every day 6am.
Crunching the numbers: Austin reported as one of the least affordable big cities in the country
(Kent Wang/CC)

In a new real estate report looking at the most and least expensive cities to buy a house, Austin crumbled, falling near the bottom of the list and below every other Texas city mentioned.


Of the country's 50 biggest cities, Austin fell to 36th place on SmartAsset's "Where the Average Household Can Afford the Most and Least Home–2020 Edition."

Using a home buying calculator, the financial website took the median household income and average non-mortgage debt per city and used it to estimate how much home an average household could afford. From there, cities were ranked based on the area's median home value.

Though fortunately Austin did not top the list of least affordable cities, the city is not doing residents any financial favors. With a median income of $75,413 and $27,193 worth of non-mortgage debt, the average Austinite can afford a home priced at $317,000.

The median house value in Austin is $378,300, making it only 83.8% affordable. Last year, Austin came in 36th place again, though at a 77.4% affordability rate.

With Detroit ranking first and 191.85% affordable and New York City coming in 50th and most expensive at 42.45% affordable, the other Texas cities on the list had a wide range to work with.

In ninth place, El Paso has a 133.23% affordability rate. Fort Worth came in 13th place with a 122.73% affordability rate, followed immediately by San Antonio in 14th place with a 121.57% affordability rate, Arlington in 20th place with 112.25% affordability rate and Houston came in 28th place with a 101.63% affordability rate.

Dallas came in 30th, the only other city not above 100% affordable, with a 92.91% affordability rate.

Austin is not alone though, as 22 of the 50 cities could not afford a house at the median value.

Popular

A mortgage banker walks us through the math on purchasing a 'mid-price' Austin home
Shutterstock

So you want to buy a house?

To anyone trying to get on the "housing ladder," it's been a discouraging couple of years as prices skyrocketed in a market crowded with buyers bidding against each other for just about any available home.

Things may be calming down, with the Austin Board of REALTORS reporting fewer sales and more available homes this summer.

Mortgage rates have more than doubled in the last year, from around 3% to well over 6% on a 30-year fixed rate loan, getting even more of a bump this week after the Federal Reserve raised bank rates on Wednesday.

So how affordable are homes right now? That, of course, depends on what you want and how much you're able or willing to pay, but here are some rough estimates of what a typical buyer would pay to buy a $650,000 home, which would be considered "mid-price" in today's market.

Mortgage banker Chris Holland (NMLS 211033) of Austin's Sente Mortgage ran some numbers for Austonia to illustrate a typical purchase.

Keep ReadingShow less
Fall camping: Camp Fimfo Waco offers one-of-a-kind experiences in the heart of Texas
Camp Fimfo Waco

Camp Fimfo Waco, a brand new camping resort, is kicking off football and fall camping season in style! With top-notch amenities, premium accommodations, and 10 weekends of fall fun, there’s no better place to have a fall camping getaway, especially if you’re a Baylor football fan!

Keep ReadingShow less