Austin Leads the U.S. in Improving Starter-Home Affordability

After years of rising housing costs, Austin's starter-home market is finally moving in the opposite direction, faster than any other major U.S. metro.

The numbers:

• No. 1 nationally for improvement in starter-home affordability

• $92,607 annual income needed to afford a typical Austin starter home

• Down 6.1% from last year, the largest decline among major U.S. metros

• $109,059 estimated median household income in Austin

• 25.5% of median household income needed for a typical starter home

Redfin defines starter homes as properties in the 5th to 35th percentile of local sale prices and considers a home affordable when monthly housing costs consume no more than 30% of household income.

Taken together, the numbers point to a meaningful shift in Austin's housing economy. The city is still far from inexpensive, but falling entry-level housing costs make it easier for younger workers to put down roots, strengthening Austin's ability to attract and retain the talent its growing companies depend on.