More Dallas-Fort Worth households could afford a median-priced home during the third quarter compared to the same time a year prior, according to the latest Housing Affordability Index from the Houston Association of REALTORS®.

Amid the median-home price decreasing 1.4% year over year to $376,100 and the average 30-year mortgage rate holding steady at 6.5%, Dallas-Fort Worth households needed a minimum of $2,770 to afford their monthly housing costs, including principal, taxes and insurance.

Annually, households needed $110,800 to maintain those monthly payments, assuming they spend 30% of their income on housing costs. That’s down 1.1% year over year.

That means that 38% of Dallas-area households could afford a median-priced home in Q3, up from 35% during the third quarter of 2024.

While that’s slightly lower than statewide affordability — 42% of Texas households can afford median-priced homes — it’s better than national affordability, as 35% of households across the country can afford a median-priced home.

“We’re encouraged to see homebuying become a bit more attainable again,” HAR Chair Shae Cottar said in a press release. “Lower mortgage rates and home prices are helping open the door … While affordability is still a challenge, especially for first-time homebuyers, [Dallas] and Texas continue to be among the more affordable markets nationwide. Continued rate relief will be key in helping even more buyers achieve their goals of homeownership.”