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.

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

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.

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:

— Statesman reporter Julianna Russ contributed to this report.