Renting vs. Buying in Texas Right Now. An Honest Comparison
If you're renting in Texas right now, you've probably asked yourself: should I just buy?
Maybe rates have you hesitant. Maybe you're not sure you're ready. Maybe you've been watching the market and waiting for the "right time."
This post isn't going to pressure you into anything. We're going to lay out the honest math and the things the math doesn't capture so you can make the best decision for your life.
First, the Numbers: What Are You Actually Paying to Rent?
The average rent for a two-bedroom apartment in San Antonio in early 2026 sits around $1,300–$1,600 per month, depending on the area. In Dallas and Austin, that number climbs to $1,600–$2,200+.
Here's the part that stings: every one of those dollars goes to your landlord's equity. Not yours.
Over 12 months at $1,500/month, that's $18,000 paid, and at the end, you own nothing. Over five years, that's $90,000, plus annual rent increases averaging 3–5% per year.
What Would a Mortgage Cost on a Similar Home?
Let's look at a real example based on current Texas market conditions.
Scenario: Purchasing a $300,000 home in San Antonio
Loan amount: $289,500 (3.5% FHA down payment of $10,500)
Interest rate: ~6.25% (30-year fixed)
Principal & interest payment: ~$1,782/month
Property taxes (Texas average ~2.1%): ~$525/month
Homeowner's insurance: ~$150/month
FHA mortgage insurance (MIP): ~$195/month
Estimated total monthly payment: ~$2,652
At face value, that's more than a $1,500 rent payment. But that comparison is incomplete. Here's what the mortgage payment is doing that rent isn't.
The Equity Equation: What Renting Costs You Over Time
When you own a home, a portion of every mortgage payment reduces your loan balance, building equity. Add in home appreciation, and the picture changes dramatically.
Equity built in year one on a $300K home:
Principal paid down: ~$3,800
Appreciation at 3% (conservative): ~$9,000
Total equity gained: ~$12,800
Equity built over 5 years:
Principal paid down: ~$21,000
Home value at 3%/yr: ~$347,000 (from $300K)
Net equity position: ~$78,500 (down payment + principal + appreciation)
Over the same 5 years of renting at $1,500/month with 3% annual increases:
Total rent paid: ~$96,500
Equity built: $0
That's nearly a $175,000 difference in net worth position between the buyer and the renter over just five years.
"But Mortgage Rates Are Too High Right Now"
This is the most common objection we hear, and it's worth addressing directly.
Yes, rates are around 6% right now. That's higher than the historic lows of 2020–2021. But here's the context:
The 50-year average for 30-year fixed mortgage rates is approximately 7.7%
Rates in the 6% range are historically normal, not unusually high
Experts project rates could move below 6% at some point in 2026, but there are no guarantees
More importantly, here's the strategy most buyers aren't considering: buy now, refinance later.
If you buy today at 6.25% and rates drop to 5.5% in 18 months, you can refinance. Your payment drops. You've also been building equity for those 18 months, and you bought the home at today's price, not tomorrow's.
If you wait for rates to drop, home prices may well have risen. You save on the rate but pay more for the home, and you've spent another year or two paying rent.
The Tax Advantages of Owning
Homeownership comes with tax benefits that renting doesn't:
Mortgage interest deduction: You may be able to deduct mortgage interest paid from your federal taxable income (consult a tax professional for your specific situation).
Property tax deduction: Texas property taxes are deductible on your federal return, up to the $10,000 SALT cap.
Homestead exemption: Texas offers a homestead exemption that reduces the taxable value of your primary residence for property tax purposes. In 2023, the state raised the exemption to $100,000, significantly reducing the property tax burden for homeowners.
Capital gains exclusion: When you eventually sell, you can exclude up to $250,000 in gains ($500,000 for married couples) from capital gains taxes, one of the most powerful wealth-building tools in the tax code.
When Renting Actually Makes Sense
We promised you honest, so here it is: renting is the right choice in some situations.
Renting may make more sense if:
You're planning to move in the next 1–2 years (transaction costs of buying and selling eat into short-term gains)
Your job or income is unstable and you're not yet confident in your ability to make consistent payments
You're actively rebuilding credit and are 6–12 months away from qualifying for a better loan
You're saving aggressively and will be in a meaningfully stronger financial position soon
If any of these apply, a good loan officer will tell you, just like we do.
When Buying Makes More Sense
Buying likely makes more sense if:
You plan to stay in the home for 3+ years
Your income is stable and you can comfortably handle the monthly payment
You qualify for Texas assistance programs that reduce your upfront costs
Your rent is within $300–$500 of what a mortgage payment would be
That last point is more common than people think. With down payment assistance covering your upfront costs and Texas's relatively affordable market, the gap between renting and owning is often smaller than it appears.
The Part the Math Can't Capture
Homeownership isn't just a financial decision. For most people, it's also:
Stability — no landlord who can raise your rent, sell the property, or ask you to move
Control — paint the walls, get a dog, renovate the kitchen, make it yours
Roots — a place to belong, to raise a family, to build community
Legacy — something to pass down, a foundation for generational wealth
TLP Mortgage's tagline is "Your Life. Your Story. Your Home." because we believe a home is more than a transaction. It's the setting for the life you're building.
The Bottom Line
Renting isn't failing. But in most cases, especially for Texas residents who plan to stay put for a few years, buying builds significantly more wealth over time.
The question isn't whether to buy. It's when and how to do it smartly.
That's the conversation we'd love to have with you.
Talk to a TLP loan advisor.individual; Free, No Obligation
We'll run your actual numbers, show you what a mortgage would look like vs. your current rent, and identify any programs that could lower your upfront costs. No pressure, no commitment, just information.
TLP Mortgage, Powered by Pilgrim Mortgage® | NMLS #225091 | 4372 N Loop 1604 W Suite 203, Shavano Park TX 78249 | Equal Housing Lender
This content is for informational purposes only and does not constitute financial or legal advice. Monthly payment estimates are illustrative and based on assumptions that may not reflect your specific situation. Consult a TLP loan officer for a personalized analysis. Tax benefits vary by individual, consult a qualified tax advisor.
