Data shows Houston home affordability continues to be a challenge

HOUSTON, Texas (KTRK) -- It's no secret - for many Houstonians, it's tough to afford your first home. ABC13 started digging into this after looking at new data showing how much money a person has to make in order to afford a starter home in the Houston area.

"Every weekend, I open my blinds in the kitchen, and I just kind of look out and have my coffee, and I am just so thankful," Zondora Curtis, a new homeowner, said.

Curtis, a hardworking mom of two, is thankful to have a home of her own this holiday season. It's a goal she said took her three years to accomplish.

"I made the decision to move further out of the outskirts of Houston to be able to save and pay less in rent to save to buy the home. So, I made a lot of strategic changes in my finances and how I budget my money to be able to get where I wanted to be three years later," Curtis explained.

Data from Point2 shows the median yearly income for a renter in Houston is about $41,000. Around $60,000 of annual income, though, is what is needed to buy a starter home in the area.

According to their study, the average starter home in Houston costs $196,661.

Additionally, data from the Houston Association of Realtors shows a more than 40% jump from last year to this year when it comes to how much money a family has to make to buy a median-priced home in the Houston area. Last year in the third quarter, a family would have needed to make around $63,000 a year. At the same time this year, they would need to make about $90,000.

"The biggest problem you have right now is affordable housing in the Houston area. It's non-existent," Michael Weaster, a longtime Houston-area real estate agent, said.

Weaster said he often sees hopeful first-time homebuyers lose out to investors building their real estate portfolios.

"When people do come across a good deal or one that they can afford, nine times out of 10, they lose them to a cash investor," Weaster explained.

So, you may wonder if and when a home could be more affordable here. Weaster said he doesn't think average home prices will stay quite this high.

"The housing market as a whole in the United States is going to start to dip. Is Houston going to go down below the $403,000 average? In my opinion, yes. Is it going to go back down to $280,000? I doubt it ever," Weaster said.

So, what can you do now to be able to own a home in the future?

• Start saving, even if it's a small amount

• Work on your credit

• Work towards job stability

"What they want to do, if there's anything on their credit report that's either a collection or charge-off, they do want to get those items paid off," Cassandra Robinson-Bacon, the homeowner services director for Houston Habitat for Humanity, said.

According to Robinson-Bacon, decreasing credit card balances by paying more than the minimum monthly payment when possible is a good step.

"Some people do want to skip around on different jobs, but we do prefer, especially if you're thinking about owning a home, we prefer to look at those applicants that do have job stability, the ones that have stayed with their employer for 12 months or longer," Robinson-Bacon said.

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