Texans and home buying: If you want to buy a house in Texas in 2025, you might need nearly $100,000 a year!
According to a Realtor.com report, the minimum income to afford a median-priced home in Texas is $99,000, while the average household income is about $75,780.
That means most Texans need $23,000 more than they actually earn to comfortably buy a house.
How Affordable is Texas Compared to Other States?
Realtor.com looked at all 50 states to see how much people need to earn to buy a home. Here’s a simple table of the 10 most affordable states for 2025:
| Rank | State | Minimum Income Needed | Median Home Price | Affordability Gap |
|---|---|---|---|---|
| 1 | Iowa | $76,422 | $289,938 | $431 |
| 2 | Illinois | $85,196 | — | — |
| 3 | Kansas | $74,030 | — | — |
| 4 | Ohio | $76,425 | — | — |
| 5 | Indiana | $81,565 | — | — |
| 6 | Pennsylvania | $85,662 | — | — |
| 7 | Missouri | $81,973 | — | — |
| 8 | West Virginia | $71,167 | — | — |
| 9 | Minnesota | $105,169 | — | — |
| 10 | Michigan | $83,542 | — | — |
Fun fact: Montana is the least affordable state. People there would need more than $171,000 a year to buy a home with the median price of $649,900.
Texas Housing Market Update
- Austin median price: $510,950 (slightly lower than last year).
- Active listings: 14,220 homes.
- Pending sales: 2,669 homes in August 2025.
- Market trend: Austin is slowly turning into a buyer’s market, which means buyers have more choices and prices are stabilizing.
Quick Look at Central Texas Counties
| County | Homes Sold | Median Price | Active Listings | Notes |
|---|---|---|---|---|
| Travis | 1,167 | $525,000 | 6,743 | Prices up 4.4% YoY |
| Williamson | 858 | $425,000 | 4,523 | Listings up 21% YoY |
| Hays | 401 | $369,000 | 1,831 | Prices down 3.4% YoY |
| Bastrop | 102 | $366,000 | 774 | Prices down 16.6% YoY |
| Caldwell | 30 | $227,750 | 156 | Prices down 24.1% YoY |
Tip for buyers: Even though homes are expensive, more listings and slightly lower prices in some counties make now a better time to shop than last year.
Takeaway
Buying a house in Texas is still a challenge if you don’t earn six figures, but with more homes on the market and slowly stabilizing prices, there’s hope for smart buyers who plan carefully.
Related
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