Higher mortgage rates hurting North Texas housing affordability

Mortgage Rates
Photo credit AlbertPego/GettyImages

In their quarterly Texas Housing Affordability Index, the Texas Real Estate Research Center finds that some local regions, including Collin County, Denton County, and Dallas-Plano-Irving are among the least affordable.

The THAI measures the relationship between the median family income and the required income to purchase the median priced home in a particular area. A ratio of 1.00 means the median family income is exactly sufficient to purchase the median-priced home. The lower the ratio, the less affordable the area.

Collin County is the second least affordable area, according to the index, with a ratio of 0.84. It trails only Travis County at 0.83.

Denton County residents are feeling the pinch too, with a ratio of exactly 1.00, 5th lowest in the state. While the Dallas-Plano-Irving market came in 6th at 1.04.

Meanwhile, the THAI exceeded 1.00 for the state (1.22), indicating Texas remains affordable for a family earning the median income.

Wichita Falls (2.1) and Odessa (2.06) led the state in affordability, a factor of the smaller gap between home prices and median family income in the two areas.

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Featured Image Photo Credit: AlbertPego/GettyImages