Starter home prices in Texas are rising despite regular inventory levels.
On a national scale, the number of available starter homes this year dropped 12.1 percent. In addition, buyers now have to pay more than ever to get their hands on a starter home, as much as 1.9 percent more of their income, and likely to continue growing. However, Texas is faring relatively well. According to a recent Trulia research article, “Inventory and Price Watch: It’s Harder to Get Started,” price, not inventory, is the problem across Texas metropolitan areas.
In Houston, the median starter home price in Q4 of 2016 was $104,967 — a 16.6 percent change over Q4 of 2015. However, buyers in Houston needed a 3.4 percent additional share of income to afford a starter home. Dallas fared slightly better. The average cost of a home in Q4 of 2015 was $117,667, only a 2.9 percent additional share of income.
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