Texas home prices sit below the national median, which makes it look like an easy market. The catch is what comes after the purchase price: some of the highest property taxes and insurance costs in the country. Here's the full picture, plus the homestead protections that make Texas distinctive.
Texas's median home is about $302,000 — below the national median of $403,200. On paper the income needed (~$87,000) sits close to what a typical Texas household earns (~$68,000), so the purchase price itself is genuinely attainable for many buyers.
Sources: Zillow ZHVI, US Census. The sticker price is the affordable part — the running costs aren't.
The catch is what comes after the price: Texas has no state income tax, and it makes up the difference through property tax and insurance — two of the largest and most commonly underestimated costs of owning here.
Texas property taxes are among the highest in the nation at 1.5–2.5%+ of home value annually. This is the single most commonly underestimated cost for first-time Texas buyers. On a $300,000 home, budget $4,500–$7,500/year in property taxes alone.
That's an annual cost, every year you own — not a one-time closing item. When you compare a Texas home to one in a lower-tax state, run the monthly figure withtax included, or you'll understate the true cost of ownership.
Texas averages about $3,000 a year — above the national average of $2,543 — but the average hides a huge spread. Texas homeowners insurance costs vary enormously by region — coastal/Gulf areas near Houston pay far more than inland areas. Budget carefully and research your specific ZIP code.
The main risks driving cost are hurricanes, tornadoes, hail. If you're buying near the Gulf, get an insurance quote for the specific address before you commit — see the US home insurance guide for why standard policies never cover flooding.
Texas has one of the strongest homestead exemptions in the country — unlimited value for your primary residence against judgment creditors (not mortgage lenders). Texas also has unique home equity loan rules: borrowing is capped at 80% combined LTV, requires a 12-day cooling-off period before closing, and cannot close at the property itself.
Those home-equity rules are worth knowing before you ever borrow against the house. Foreclosure in Texas is nonjudicial and fast — often around 2 months — and the state does not offer broad anti-deficiency protection, so keeping an emergency buffer matters more here than in some states.
General overview only — laws change. Consult a real estate attorney for advice specific to your purchase.
The Texas mortgage calculator builds in a local property-tax estimate, so the monthly figure reflects the tax reality — not just principal and interest. Pair it with the deposit guide to decide how much to put down.
This page is general educational information to help you think it through — not financial, tax, or legal advice. Your own situation is unique; consider speaking with a qualified adviser before making a big decision. See how we calculate and our Privacy Policy.