Texans Need Nearly Six Figures to Buy a Home in 2025, Report Finds

How much income do you need to buy a home in Texas — and what does that mean for San Antonio buyers?

A new analysis from Realtor.com shows that Texans now need to make at least $99,000 per year to afford a median-priced home in 2025. While Texas remains more affordable than many states, the report highlights a growing affordability gap that is making homeownership feel out of reach for many households.

The Statewide Picture

According to the U.S. Census Bureau, the median household income in Texas is $75,780. That means the average Texas household earns about $23,000 less than the income needed to afford a typical home in today’s market. In percentage terms, the minimum income required to buy a home is 30% higher than the state’s actual median income.

Texas joins 18 other states where the minimum required income to purchase a home is just under six figures. Although that keeps Texas more affordable than high-cost states like California or Montana, the gap is still significant for middle-income families.

What This Means in San Antonio

The affordability challenge is also evident in San Antonio. In July 2025, the median list price of a home in the San Antonio–New Braunfels metro area was $339,700, according to Realtor.com. While that figure is 2.7% lower than July 2024, it still requires a household income much higher than the area’s typical earnings to comfortably qualify for a mortgage without becoming “house poor.”

For local buyers, this underscores the importance of financial preparation, exploring loan programs, and working with a knowledgeable Realtor who understands how to navigate affordability pressures.

National Comparisons

The report also compared affordability across all 50 states. At one end of the spectrum, Iowa ranked as the most affordable state, with residents needing an annual income of just $76,422 to afford a median-priced home ($289,938). With a median household income close to that figure, Iowa’s affordability gap is only $431.

On the other extreme, Montana ranked as the least affordable. With a median list price of $649,900 and a median household income of just $72,066, residents there would need to make over $171,000 per year to afford a typical home — more than double their current median income.

The Broader Trend

Realtor.com noted that while the national housing market is gradually turning more buyer-friendly, affordability remains a challenge. High mortgage rates (currently hovering around 6.72%) continue to push required incomes higher, even as prices moderate slightly in some markets.

The analysis stressed that affordability is not uniform — it varies widely between states and metro areas. In San Antonio, slightly lower home prices compared to Austin or Dallas make the city more approachable, but buyers still face income hurdles that can delay or complicate the path to ownership.

The Takeaway

Texans may not have the steepest affordability gap in the U.S., but needing nearly six figures to buy a home still represents a significant barrier for many families. For San Antonio buyers, the median home price of around $340,000 means careful planning is essential. Whether you’re budgeting for your first home or upgrading to your next, understanding the market and your financing options can make all the difference.

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