Only 32% of Dallas-area households could afford a median-priced home during the third quarter of the year, according to the latest Housing Affordability report from the Houston Association of REALTORS®.

The median home price fell to $385,700 during the third quarter, while the monthly mortgage payment rose to $2,940. Given the average interest rate of 7.04%, that means the typical buyer needed an annual income of $117,600 to afford a median-priced home — 17.1% higher than the same time last year.

That’s slightly lower than statewide affordability — 36% of Texans could afford a median-priced home during the third quarter.

Dallas buyers also experienced a less affordable market than buyers in the rest of the country. Nationwide, affordability dropped to 33%, down from 38% year over year.