Houston Homebuyers Catch a Break in 2026

Houston First-Time Buyers Get a Break as Starter-Home Costs Ease

First-time homebuyers are getting a modest break in 2026, as the income needed to afford a starter home has declined slightly, according to a new Redfin housing affordability report.

Houstonians now need to earn approximately $70,384 to afford a median-priced starter home in the metro area, 4% less than last year. Houston ranked ninth among the 50 U.S. metropolitan areas analyzed for the largest declines in the income needed to afford a starter home.

The report also found that Houston’s starter homes are considered affordable based on the metro’s median household income of approximately $90,865. Nationally, buyers need to earn about $70,693 to afford a typical starter home.

Across the country, affordability has improved modestly as incomes rise and the income requirement for starter homes declines. The typical American household earns an estimated $87,599, roughly $17,000 more than the income needed to purchase a median-priced starter home. That gap has grown from about $12,500 a year earlier.

Despite the improvement, starter homes remain out of reach for many first-time buyers, particularly in expensive housing markets. High home prices and elevated mortgage rates continue to put pressure on prospective buyers, especially those with lower incomes who are more sensitive to affordability challenges.

Income Needed to Afford a Starter Home in Major Texas Metros:

• Austin: $92,607, down 6.1%

• Dallas: $83,096, down 5.1%

• Fort Worth: $77,886, down 4.9%

• Houston: $70,384, down 4%

• San Antonio: $62,859, down 3.7%

Affordability is more challenging when looking at the overall U.S. housing market. American households need to earn just under $110,000 to afford a typical home, while the typical household earns about $22,000 less than that amount.

The gap is partly driven by rapidly rising prices in the luxury housing segment and expensive markets such as San Francisco and West Palm Beach, where higher-income buyers have a greater influence on prices. Meanwhile, many potential starter-home buyers are stepping back from the market because they tend to have lower incomes and are more affected by rising housing costs.

Top 10 Metros With the Biggest Declines in Required Starter-Home Income

1. Austin, Texas

2. Oakland, California

3. Dallas, Texas

4. Fort Worth, Texas

5. Denver, Colorado

6. San Francisco, California

7. Phoenix, Arizona

8. Las Vegas, Nevada

9. Houston, Texas

10. Los Angeles, California

Overall, the numbers suggest a slight improvement for Houston’s first-time buyers in 2026, although high home prices and mortgage costs continue to make purchasing a home a significant financial challenge.