AUSTIN, Texas — For many Americans, buying a home remains out of reach as housing costs have skyrocketed in recent years. 

What You Need To Know

  • A study from Redfin found that a household making the median U.S. income in 2024 would have to spend 41.8% of their earnings to afford an average-priced home

  • Four of Texas’ largest metropolitan areas saw some of the biggest improvements in housing affordability last year compared to the rest of America’s largest cities

  • Austin won the title of most improved, with monthly housing costs down 3.2% from the previous year

  • Pittsburgh, Detroit and St. Louis were the most affordable markets

In 2024, buying a house became slightly more affordable compared to the previous year, but it was still the second most expensive year on record, according to a study from real estate company Redfin.

The study found that a household making the median U.S. income would have to spend 41.8% of their earnings to afford an average-priced home. That’s down from the 42.2% of income needed for housing costs in 2023. Most financial advisers recommend spending no more than 30% of your average income on housing.

While the study found Pittsburgh, Detroit and St. Louis to be the most affordable markets, it had some good news for Texans looking to buy a home.

Four of Texas’ largest metropolitan areas saw some of the biggest improvements in housing affordability last year compared to the rest of America’s largest cities. 

Austin won the title of most improved, with monthly housing costs down 3.2% from the previous year. In 2023, Austinites would on average have to spend 42.8% of their earnings to afford a median-priced home. By 2024, that percentage was down to 39.6%.

The next three most improved metropolitan areas for affordability were all in Texas–with San Antonio seeing a 2.3% increase in affordability, Dallas seeing a 2% increase and Fort Worth seeing a 1.6% increase. Houston also saw an increase in affordability of about 1.2%. 

Redfin attributed the improvement to a boom in housing construction in the state, especially during the pandemic. 

“With inventory up and demand easing, prices are now starting to fall, leading to improvements in affordability,” the study said. 

Inversely, the least affordable cities were all in California, with the average person having to spend over 70% of their income on housing costs, if they were to purchase a home. 

“Affordability improved ever so slightly this year because wage growth outpaced the growth in monthly housing payments,” said Redfin senior economist Elijah de la Campa in a news release. “But that’s not to say buying a home became affordable. For many Americans, buying a home remains more out of reach than ever and that’s unlikely to change anytime soon. Even with inventory trending upwards, we still expect prices to continue rising in 2025 due to a lack of homes for sale—pushing more would-be homebuyers to rent instead.”