Rising home prices in North Texas are hammering home affordability. And fewer local households can afford to buy a house because of the combination of rising mortgage rates and home costs. A buyer must have more than $63,000 in annual household income to purchase a mid-priced home in the Dallas area, according to a study by HSH.com. That's based on making a 10 percent down payment and financing the purchase at about 4 percent over 30 years. Home prices in North Texas have risen more than 40 percent in the last four years and are at a record high. Year-over-year median home prices in the area are about 12 percent higher than they were just a year ago, according to HSH.com, an online mortgage firm. While housing costs have jumped in D-FW, they are still well below many coastal big-city markets.
D-FW homeowners are spending an average of just over 15 percent of their annual income on mortgage payments, according to a study by Zillow. Even with recent price increases, that's still less than the historical local average of using about 20 percent of income to make mortgage payments. D-FW residents are spending even more on rent — about 30 percent on average. Nationwide, homeowners are spending almost 16 percent of their monthly income to buy a house, the highest percentage in 10 years.
- Dallas Morning News, February 22, 2017