Cities Where Renters Can't Afford a Starter Home

• In 13 more of the 50 largest U.S. cities, renters earned less than half the income they would need to make the move from renters to homeowners.
• Renters in only 4 large U.S. cities (Detroit; Tulsa, OK; Memphis, TN; Oklahoma City) earned 100% or more than what they needed to afford an entry-level home.
• This very short list was all the more shocking because just one month prior, in September, it also included Kansas City, MO. And, one month before that, in August, Baltimore was also affordable for renters who wanted to make the move to homeownership.
• In only 15 of the 50 largest U.S. cities, the price of a starter home still fits the “old” definition of the term: Entry-level houses here were $200,000 or less.
• But even the definition needs to change. It's now the lower third of homes available. There are no livable $200,000 homes for sale in San Francisco.

Congratulations to California. It has 8 of the top 15 least affordable cities in the nation for which to try to buy a starter home. 

Affordable Starter Homes 

Point2Homes located four cities where renters can afford a starter home. 

They are Detroit, MI; Tulsa, OK; Memphis, TN; and Oklahoma City, OK. 

In Oklahoma City, renters made $140 above the amount required.

The starter home’s new and simplified definition is “the most affordable home in town.” However, this simplified definition does nothing to simplify matters for first-time buyers. The change in definition can’t mask the painful reality: Even starter homes — which should represent the epitome of affordability — are increasingly becoming anything but.