Rent or Buy in Austin?

Austin's rent vs. buy calculus is unusually complex right now, and anyone who gives you a simple answer probably isn't accounting for all the variables. The city experienced one of the most dramatic housing booms of any American metro during 2020–2022, with median home prices peaking near $600,000. Since then, prices have corrected — the median is now closer to $480,000–$520,000 — but they haven't fallen back to pre-pandemic levels, leaving buyers in a market that's cheaper than the peak but still expensive by historical Austin standards.

Texas has no state income tax, which is a genuine financial advantage for residents. But the state funds its government through property taxes, and Travis County's effective rate runs around 1.8–2.2% of assessed value — among the highest in the country. On a $500,000 home, that's $9,000–$11,000 per year in property taxes alone, or $750–$917 per month. This is the number that most Austin buyers underestimate, and it's the primary reason the break-even timeline in Austin stretches to seven or more years for many households.

The rental market has shifted in buyers' favor. Austin added tens of thousands of new apartment units between 2022 and 2025, and rents have fallen 10–15% from their peak. A two-bedroom in South Congress or East Austin now rents for $1,900–$2,400 per month — competitive enough that renting is the financially rational choice for anyone planning to stay fewer than five years.

For longer-term residents, Austin's job market — anchored by Tesla, Apple, Google, and a thriving startup ecosystem — provides the income stability and demand floor that makes buying defensible. The calculator below uses current Austin median prices and Travis County tax rates to give you a clear break-even analysis.