Rent vs buy in Austin, TX
In Austin, Texas, the typical rent is $1,571 /mo and the typical home costs $491,960.
Renting saves you $111k over 7 years
Today's mortgage rate applies alongside 20% down and Austin's typical rent and home value. There is no break-even within 30 years.
An opinion, clearly labeled, with the math shown. These figures are estimates, not quotes. Change any number and the stamp will change.
- Rent leads by
- $111k after 7 years
- Break-even point
- 30+ years owning never catches up sooner
- Actual cost of owning
- $4,503 each month year 1, against $1,571 rent
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Austin's typical rent and home value form the basis of this stamp. The result can change based on your rent, purchase price and time period.
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Is it cheaper to rent or buy in Austin?
Over 7 years, renting costs $111,014 less, including the money returned to you when you sell. Renting's net cost remains lower in each year shown, with no catch-up for owning within 30 years.
Renting. Owning. Cumulative net cost for each year.
Average rent compared with mortgage payment in Austin
Rent and mortgage payments aren't the whole story. Using Austin's typical price, here is the full monthly-cost list for year 1.
| Each month, year 1 | Amount | What it is |
|---|---|---|
| Rent | $1,571 | All of it, every month |
| Mortgage payment | $2,682 | $2,364 of it is interest in year 1 |
| Property tax | $590 | 1.44% of the value a year |
| Insurance | $134 | Census median for the city |
| Upkeep | $410 | 1% of the value a year |
| Owning, cash out | $3,816 | $318 of it builds equity |
| Lost return on the down payment | $800 | Annual earnings on the cash: 8.3% |
| Buying costs, spread out | $205 | 3.5% of the price over 7 years |
| True cost of owning | $4,503 | Cash out minus the equity portion, plus the two amounts above |
The figures behind the Austin verdict
- Typical home value: Zillow's ZHVI, September 2026
- $491,960
- Typical rent: Zillow's ZORI, September 2026
- $1,571 /mo
- Down payment: 20% means no private mortgage insurance, and the engine doesn't include this cost.
- 20%
- Mortgage rate: Freddie Mac Primary Mortgage Market Survey (FRED MORTGAGE30US)
- 7.24%
- Growth in home prices: FHFA house price index, Texas, 1995 to 2025
- Each year: 4.7%
- Rent growth: CPI primary residence rent, yearly growth 2006 to 2026
- Each year: 3.5%
- Savings return40% 10-year Treasuries and 60% S&P 500 with dividends, rebalanced yearly over 1928 to 2025
- The yearly rate is 8.3%
- Property tax data: Census ACS 2020-2024, Austin
- 1.44% of the property's value
- Home insurance data: Census ACS 2020-2024, Austin
- $134 each month
- MaintenanceFannie Mae: low end, 1% to 4%
- Each year, 1% of value
- Buyer costs from Freddie Mac, midpoint between 2% and 5%
- Applied to the purchase price: 3.5%
- Selling costsAgent commission and closing costs
- An amount equal to 6% of the price
What would flip the result in Austin?
Each line marks the point where Austin's 7-year verdict flips, with every other factor left unchanged.
When renting comes out ahead
- Our calculation uses 4.7%, Texas's long-run rate, while yearly home price growth stays under 7.3%
- The mortgage rate remains above 3.17%.
- For a similar home, monthly rent is under $2,760 (the local typical is $1,571).
- If you move at any point during the next 30 years, owning won't catch up with these numbers.
When buying comes out ahead
- Annual home price growth goes above 7.3%.
- You secure a mortgage rate under 3.17%, while today's rate is 7.24%.
- The monthly rent for that same home would exceed $2,760.
Austin compared with the other 812 cities
| Measure | Austin | Median city |
|---|---|---|
| Typical home value | $491,960 | $422,451 |
| Typical rent | $1,571 /mo | $1,837 /mo |
| Price-to-rent ratio | 26.1 (#119 of 813) | 18.5 |
| Home prices, last 10 years | 3.7% a year | 6.2% a year |
| Rents, last 5 years | -0.9% a year | 4% a year |
| Property tax | 1.44% | 0.87% |
| Households that rent | 57% | 42% |
Sources: Zillow ZHVI, ZORI, Census ACS 2020-2024.
Cities in Texas besides Austin
- Houston TX has a toss-up result, and renting leads by $2k.
- Rent. San Antonio, TX. Rent wins by $10k.
- Rent. Dallas, TX. Renting comes out ahead by $20k.
- Rent. Fort Worth, TX. Renting comes out ahead by $17k.
- Rent. Arlington, TX. Renting is ahead by $34k.
- Garland, TX: renting wins by $12k.