Austin Housing Market at a Glance
Median Home Price
$575,000
Median Monthly Rent
$2,100
Property Tax Rate
1.81%
Avg Home Insurance
$2,400/yr
Price-to-Rent Ratio: 22.8x (Lower ratios favor buying; higher ratios favor renting)
Austin-Specific Insights
- → Texas has no state income tax but high property taxes (1.81%); factor into total cost of ownership.
- → Rapid population growth has driven rent increases of 15-25% in recent years, potentially favoring buying.
Run Your Austin Scenario
Pre-filled with Austin's median data. Adjust to your situation.
Open Calculator with Austin Data →Key Factors for Austin Buyers
1. Down Payment Requirements
With Austin's median home price of $575,000, a 20% down payment is $115,000. Putting down less triggers PMI (typically 0.5–1.5% annually until you reach 20% equity).
2. Property Taxes
TX's property tax rate averages 1.81%, which translates to roughly $867.292/month on a median-priced home. This is above the national average.
3. Tax Deductions
Mortgage interest is deductible if you itemize (must exceed standard deduction: ~$14,600 single, ~$29,200 married in 2025). With no state income tax in TX, the federal mortgage interest deduction is your primary tax benefit.
4. Opportunity Cost
If you rent and invest your down payment instead (e.g., S&P 500 averaging ~10% annually), you build wealth differently. The calculator models this trade-off month-by-month to find your break-even point.