Rising Homeownership Costs in Texas Undercut Property Tax Relief, New Census Data Shows

Based on this article by The Texas Tribune.

Austin, Texas — According to newly released data from the U.S. Census Bureau, Texans are facing increasing financial strain in owning homes, despite recent property tax relief. The report signals that rising ancillary costs—such as utilities and insurance—are eroding gains made by lawmakers, while renters continue to grapple with elevated housing burdens.

• Property tax relief but only partial relief: Adjusted for inflation, the average property tax bill in Texas dropped about 6.6% from approximately $4,400 in 2023 to just over $4,100 in 2024.

• Overall monthly homeowner costs rising: The typical homeowner in Texas now pays a median of $1,452 per month in total housing‐related costs—including mortgage payment, insurance, utilities, and taxes—a 2.7% increase from the prior year.

• Increased burden relative to income: Homeowners with mortgages are spending about 22.2% of their income on housing costs.

• Renters also burdened: Rent rose by 1.4% in 2024 in Texas. While this is a slower pace of growth compared to previous years, rents remain about 10% higher than in 2019. Many renters are “cost-burdened,” meaning they are spending more than 30% of income on rent + utilities.

• Income growth lagging: Texas’ median household income rose modestly—about 2.2% from 2023 to 2024—but has increased only 1.2% since 2019 when accounting for inflation.

• The slight lowering of property tax burdens may offer some relief, but homeowners are paying more in other essential homeownership costs. This reduces the impact of tax reductions and can leave many still financially strained.

• Renters, especially low- and moderate-income ones, continue to face affordability challenges as rents and utility costs remain elevated. Being cost-burdened limits household ability to save, invest, or meet other essential needs.

• Income growth is failing to keep pace with total housing cost increases, further straining middle-class and working-class households.