Austin ranks 16th among cities where highest salaries are needed to buy a home

Aspiring home buyers in Austin may want to reconsider dipping their toes into the market amid a report that finds they need to earn well over the national average household income to afford a house in the city.

Austin ranked in the top 20 U.S. cities — taking the 16th spot— where residents need to earn the highest salaries to buy a home.

The capital city requires households to have $132,037 annually to afford a median-priced home at today's mortgage rates, above the national average of $106,731 and well over the 2024 U.S median household income of $83,730.

How much do you need to make a year to buy a home in Texas?

Austin came in first among Texas cities, with Dallas, Houston, and San Antonio following, respectively.

• Austin: $132,037
• Dallas: $106,277
• Houston: $96,773
• San Antonio: $90,999

The data, calculated by HSH, assumes a 20% down payment and a 30-year fixed-rate mortgage, incorporating principal, interest, taxes and insurance as of the fourth quarter of 2025.

Notably, HSH found that many large cities now require incomes between $130,000 and $190,000 — Austin falls within that range.

Only 12 cities had median-priced homes affordable for households earning at or below $83,730.

These rankings come amid the median age of U.S. homebuyers climbing to 59 years old, and the share of first-time buyers falling by roughly 50 percent since 2007.

Downtown Austin ZIP code ranks among hottest in U.S.

Despite high income requirements, parts of Austin remain a magnet for newcomers.

The January 2026 edition of “The Hottest ZIP Codes in America” — a monthly analysis by MovingPlace that measures inbound moves — placed ZIP code 78701, which encompasses most of downtown Austin, as the seventh most-moved-to ZIP code nationwide, based on moves per capita in December 2025.

Texas dominated many national rankings in the report as well, with the ZIP code encompassing the Dallas suburb of Crandall ranking second on the list and a more urban Dallas ZIP code ranking 10th.

Here are the top 10 hottest zip codes in the US:

1. 34987 — Port Saint Lucie, Fla.
2. 75114 – Crandall, Texas
3. 87001 – Algodones, N.M.
4. 80019 – Aurora, Colo.
5. 37228 – Nashville, Tenn.
6. 85387 – Surprise, Ariz.
7. 78701 – Austin, Texas
8. 28445 – Holly Ridge, N.C.
9. 33576 – San Antonio, Fla.
10. 75251 – Dallas