See the true cost of renting vs buying in Austin over any time horizon — including the equity you build along the way.
Send me the address. I will pull current comps, estimate real taxes, and show you exactly what buying looks like versus renting in that neighborhood.
For most people planning to stay 5+ years, buying wins when equity is included. At 7% rates and Austin's 1.95% tax, monthly ownership costs exceed renting short-term. But Austin's long-term appreciation has averaged 4-6%/year and equity builds steadily. The 2022-2023 correction brought prices back to sustainable levels, making 2026 a more reasonable entry point than 2021-2022.
At typical 2026 numbers — 7% rate, 1.95% tax, $2,800/month rent, $575,000 purchase price — the break-even is approximately 5-6 years. Buyers who stay longer than the break-even benefit more. Enter your specific numbers above to see where your break-even falls.
Yes. Austin peaked in early 2022 and corrected 15-20% through 2023. Prices stabilized in 2024 and have modestly recovered through 2025-2026. The correction was driven by rate increases and a surge in new construction. Today's prices are more sustainable than the 2021-2022 peak.
Average rent varies widely by area and unit type. One-bedroom apartments in central Austin average $1,400-$1,900/month. Two-bedrooms run $1,800-$2,600. Single-family home rentals average $2,200-$3,500 depending on size and location. East Austin, South Austin, and Mueller command premiums over suburban corridors.
Austin's long-term appreciation, measured over 10+ year periods, has averaged roughly 4-6%/year. Post-correction 2023-2026 has been more modest at 2-3%/year. The calculator defaults to 4% as a conservative long-run assumption. Adjust to 3% for a bear case or 6% for a bull case.
Austin prices have already corrected meaningfully from 2022 peaks. For buyers with stable income, a 5+ year horizon, and a down payment ready, waiting carries the risk of missing further appreciation or being priced out when rates drop. I cannot predict timing, but I can help you evaluate specific properties on their merits.
Principal and interest, property taxes, homeowners insurance, HOA, maintenance (typically 1-1.5% of home value/year), and the down payment. The calculator subtracts equity built through principal paydown and appreciation to get a true net cost of buying — making it a fair comparison to renting.
Austin has strong fundamentals: continued population growth, a diversified economy, and limited buildable land in core neighborhoods. For primary residences with 5+ year horizons, Austin remains sound relative to national alternatives. Short-term speculative buying is riskier than in 2020-2021.
Renting cost: monthly rent × 12, with annual increases compounding at your entered rate. Buying gross cost: total P&I payments + property taxes + maintenance + HOA + down payment over the comparison period. Equity at the end: future home value (appreciation compounded annually) minus remaining loan balance after principal paydown.
Net cost of buying = gross buying cost minus equity. This is compared to total rent paid. The scenario with the lower net cost wins. Note that this is a simplified model — it excludes tax deductions, opportunity cost of down payment, and transaction costs (typically 6-8% of sale price) at time of sale. For a complete analysis on a specific property, reach out.
Defaults: Travis County 2026 tax rate 1.95%, Austin long-run appreciation 4%/year. Last updated July 2026.
