Rent vs buy in Galveston, TX
In Galveston, Texas, the typical rent is $1,435 /mo and the typical home value is $315,114.
Renting comes out ahead by $39k across 7 years
Today's mortgage rate and 20% down apply to Galveston's typical rent and home value. Break-even happens in year 17.
Opinion, clearly labeled, with the math shown. These are estimates, not quotes. The stamp changes when you change a number.
- Renting is ahead by
- $39k after 7 years
- Break-even point
- year 17 when owning catches up
- Actual cost of owning
- $2,990 each month year 1, against $1,435 rent
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Would renting or buying cost less in Galveston?
Once you include the money you get back when you sell, renting costs $38,746 less over 7 years. During the first 16 years, renting costs less. Owning catches up during year 17.
Renting costs. Owning costs. Net cost to date, by year.
Galveston's average rent compared with its mortgage payment
Rent and the mortgage don't tell the whole story. At Galveston's typical price, here are all monthly costs in year 1.
| Each month, year 1 | Amount | What it is |
|---|---|---|
| Rent | $1,435 | All of it, every month |
| Mortgage payment | $1,718 | $1,514 of it is interest in year 1 |
| Property tax | $284 | 1.08% of the value a year |
| Insurance | $286 | Census median for the city |
| Upkeep | $263 | 1% of the value a year |
| Owning, cash out | $2,550 | $204 of it builds equity |
| Lost return on the down payment | $512 | At 8.3% a year, what the cash would earn |
| Buying costs, spread out | $131 | 3.5% of the price over 7 years |
| True cost of owning | $2,990 | Cash out minus the equity portion, with the two earlier lines added. |
Numbers behind Galveston's result
- Typical home valueZillow ZHVI, September 2026
- $315,114
- Typical rentZillow ZORI, September 2026
- $1,435 /mo
- Down payment20% avoids private mortgage insurance, which the engine does not model
- 20%
- Mortgage rateFreddie Mac Primary Mortgage Market Survey (FRED MORTGAGE30US)
- 7.24%
- Home price growthFHFA house price index, Texas, 1995 to 2025
- 4.7% a year
- Rent growthCPI rent of primary residence, yearly growth 2006 to 2026
- 3.5% a year
- Return on savings60% S&P 500 with dividends and 40% 10-year Treasuries, rebalanced yearly, 1928 to 2025
- 8.3% a year
- Property taxCensus ACS 2020-2024, Galveston
- 1.08% of value
- Home insuranceCensus ACS 2020-2024, Galveston
- $286 /mo
- MaintenanceFannie Mae, low end of 1% to 4%
- 1% of value a year
- Buying costsFreddie Mac, middle of 2% to 5%
- 3.5% of price
- Selling costsAgent commission plus closing costs
- 6% of price
What would flip the result in Galveston?
Each line shows when Galveston's 7-year result changes, with all other factors kept the same.
Renting comes out ahead when
- Home prices grow by less than 6.1% each year; the figure we use is 4.7%, Texas's long-run rate.
- For a mortgage, the rate stays above 5.05%.
- For a home like this, monthly rent is less than $1,850 (here, the typical amount is $1,435).
- Your move occurs before year 17.
Buying comes out ahead when
- Annual home price growth is faster than 6.1%.
- You lock in a mortgage rate under 5.05% (today's rate: 7.24%).
- For the same home, monthly rent would cost more than $1,850.
- Your stay lasts 17 years or more.
Compare Galveston with the other 812 cities
| Measure | Galveston | Median city |
|---|---|---|
| Typical home value | $315,114 | $422,451 |
| Typical rent | $1,435 /mo | $1,837 /mo |
| Price-to-rent ratio | 18.3 (#417 of 813) | 18.5 |
| Home prices, last 10 years | 4.9% a year | 6.2% a year |
| Rents, last 5 years | 3% a year | 4% a year |
| Property tax | 1.08% | 0.87% |
| Households that rent | 54% | 42% |
Sources: Zillow ZHVI and ZORI, Census ACS 2020-2024.
More cities across Texas
- Too close. Houston, TX. Renting leads by $2k in this toss-up.
- Renting is ahead by $10k overall. San Antonio, TX.
- Renting is ahead by $20k overall. Dallas, TX.
- Renting is ahead by $17k overall. Fort Worth, TX.
- Renting is ahead by $111k overall. Austin, TX.
- Renting is ahead by $34k overall. Arlington, TX.