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Own Luxury Homes® Texas First-Time Buyer Affordability Gap Index™
Own Luxury Homes® Texas First-Time Buyer Affordability Gap Index™: income required to afford Texas median at 7% (28% DTI): $71,289 statewide. Austin median ~$550K: requires $112,031 (gap: $37,031 vs. $75K local median income). Houston median ~$360K: requires $73,308 (gap: $6,308 — near-parity). San Antonio: affordable at median income (surplus). Texas statewide median ~$350K vs. Florida ~$420K. Own Luxury Homes® 12-Point Agent Integrity Audit™.
Own Luxury Homes® Texas First-Time Buyer Affordability Gap Index™
Texas’ reputation for affordability has been largely dismantled in its fastest-growing markets. Austin’s 2020–2022 price surge put the capital city among the most expensive in the nation for local income earners. Dallas and Houston have maintained better affordability relative to their income bases, but the overall picture shows a state that is more affordable than New York or California while simultaneously less affordable than its own history. This Index calculates the income required to afford the median home in each major Texas metro and the gap vs. local household income.
01 — Affordability Gap by Texas Metro
| Metro | Approx Median Price | Income Required* | Median HH Income | Gap | Tier |
|---|---|---|---|---|---|
| Austin / Travis County | ~$550,000 | $112,031 | ~$75,000 | $37,031 | LARGE |
| Dallas (prime suburbs / Collin/Denton) | ~$480,000 | $97,749 | ~$78,000 | $19,749 | MODERATE |
| Houston / Harris County | ~$360,000 | $73,308 | ~$67,000 | $6,308 | SMALL |
| Fort Worth / Tarrant County | ~$350,000 | $71,289 | ~$70,000 | $1,289 | MINIMAL |
| San Antonio / Bexar County | ~$295,000 | $60,072 | ~$65,000 | Surplus: +$4,928 | AFFORDABLE |
| Frisco / Plano (Collin County) | ~$620,000 | $126,267 | ~$110,000 | $16,267 | MODERATE |
| Texas statewide avg | ~$350,000 | $71,289 | ~$71,000 | Near parity | NEAR-AFFORDABLE |
| *Income required: 28% front-end DTI, 20% down payment, 7% 30-yr fixed, P&I only. Actual qualifying income must meet back-end DTI (43-45% max including all debt). Median prices approximate; verify with current MLS. Census ACS income data. | |||||
02 — Texas vs. Florida Affordability Comparison
Texas’ statewide affordability is meaningfully better than Florida’s in several respects:
• Texas statewide median: ~$350,000 vs. Florida statewide median: ~$420,000
• Houston and San Antonio remain among the most affordable major metros in the Sunbelt for local income earners
• Texas has significantly more new construction supply in the $300K–$600K range than Florida, creating genuine buyer leverage in suburban DFW, Houston suburbs, and San Antonio
• The Fort Worth / Tarrant County market is near-affordable for dual-income professional households — a rare characteristic among major Texas metro markets
• Florida’s property tax effective rate (0.83%) is significantly lower than Texas (1.6-2.5%), meaning a same-price home in Florida carries lower annual property tax costs
• Florida’s Save Our Homes 3% assessment cap compounds over time, reducing the effective property tax burden dramatically for long-term homesteaded owners — Texas’ 10% cap is less protective
• Florida’s insurance costs are higher on average but highly variable; inland Florida markets (Orange, Polk, Lake counties) have insurance costs competitive with Texas inland markets
Brown, Ryan. “Own Luxury Homes® Texas First-Time Buyer Affordability Gap Index™.” Own Luxury Homes®. https://www.ownluxuryhomes.com/markets/texas/research-indices/texas-first-time-buyer-affordability-gapMedia: ownluxuryhomes.com/connect · 407-900-7030
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— Ryan Brown, Principal Broker & CEO, Own Luxury Homes® (FL License BK3626873)