Quick answer
At current rates, renting wins over the full 30-year horizon in Austin. Monthly ownership cost $4,499 (vs $$2,100/mo rent) plus TX's 1.90% property tax make the math tough.
Rent vs Buy · TX
Rent vs Buy in Austin (2026)
Real math using TX's 1.90% property tax rate, $3,800/year average insurance, and a 6.8% 30-year fixed mortgage. Accounts for opportunity cost — what the down payment would earn invested at 7%.
Last updated: April 23, 2026
Verdict at current rates
Renting wins (30-year horizon)
In Austin at TX's tax rates and current 6.8% mortgages, keeping the down payment invested at 7% beats homeownership even after 30 years. The standard advice "buy to build equity" doesn't apply here at today's price-to-rent ratio.
Monthly Cost Breakdown
Buying
$4,499/mo
Mortgage P&I
$438,400 loan, 30yr @ 6.8%
$2,858
Property tax
1.90% of assessed (TX avg)
$868
Homeowners insurance
$3,800/yr TX avg
$317
Maintenance
1%/yr of home value
$457
Cash at close: ~$123,300 ($20% down + fees)
Renting
$2,100/mo
2BR rent (median)
Austin market rate
$2,100
Renters insurance
~$15/mo typical
$15
Down payment invested
$109,600 growing at 7%/yr
(opportunity cost)
Monthly gap: $2,399 cheaper than buying. Renter invests that difference.
Year-by-Year Net Position
"Buy wins by" = what you'd clear selling the home minus what the renter has in investments. Positive = buy ahead.
| Year | Home value | Buyer equity (net) | Renter portfolio (net) | Buy wins by |
|---|---|---|---|---|
| Year 5 | $635,282 | $-201,022 | +$183,660 | $-384,682 |
| Year 10 | $736,466 | $-323,859 | +$314,746 | $-638,605 |
| Year 15 | $853,766 | $-420,689 | +$530,148 | $-950,836 |
| Year 30 | $1,330,140 | $-414,018 | +$2,161,102 | $-2,575,120 |
Assumptions
Every rent-vs-buy calculator depends on the assumptions. Here are ours — all transparent, none cherry-picked to bias the answer.
This is a rule-of-thumb calculator. Real decisions involve your specific tax bracket, any HOA, mortgage points, closing-cost negotiations, and exact loan terms.
Frequently Asked Questions
Is it better to rent or buy in Austin?
In Austin at current mortgage rates (6.8%), renting and investing the down payment beats buying for the full 30-year horizon. Median monthly ownership costs ($4,499) well exceed median 2BR rent ($2,100), and TX's 1.90% property tax makes the math especially tough.
What's the monthly cost of owning a home in Austin?
On a median $548K home with 20% down at 6.8% fixed rate: mortgage P&I $2,858, property tax $868 (1.90% of assessed value), homeowners insurance $317 (TX average $3,800/year), and maintenance $457 (1% of home value/year). Total: $4,499/month.
How much down payment do I need to buy in Austin?
20% down on a median Austin home ($548K) is $109,600. Plus closing costs of roughly 2.5% ($13,700). Total cash-to-close: about $123,300. FHA loans allow 3.5% down ($19,180) but require mortgage insurance that adds ~$213/month.
What's the 10-year cost of renting vs buying in Austin?
Over 10 years in Austin: renters pay $288,890 in cumulative rent but have $603,636 invested (assuming 7% return on the $109,600 down payment + monthly savings). Buyers have paid $641,724 in total ownership costs and hold $362,053 in home equity. Net: renting is ahead by $638,605 at year 10.