Rent vs. Buy Calculator in Austin (2026)
Is it better to rent or buy a home in Austin? See the break-even point and total cost comparison over your chosen time horizon.
Property Price
$387,000
90m² · $4,300/m²
Down Payment
$77,400
20% of purchase price
Monthly Mortgage
$2,014
6.1% rate · 25yr term
Monthly Rent
$1,900
City centre
🏠 Renting is cheaper over 10 years in Austin
With a 10-year horizon, the cost of buying (after equity) does not outweigh the cost of renting in Austin.
After 10 years: Renting saves approximately $15,434 vs buying.
Cumulative Cost Comparison — Austin
Net costs after accounting for property appreciation and investment returns on down payment.
| Year | Net Buy Cost | Net Rent Cost | Property Value | Verdict |
|---|---|---|---|---|
| 1 | $33,040 | $16,569 | $398,610 | 🔴 Rent |
| 2 | $53,782 | $33,386 | $410,568 | 🔴 Rent |
| 3 | $73,803 | $50,441 | $422,885 | 🔴 Rent |
| 4 | $93,070 | $67,723 | $435,572 | 🔴 Rent |
| 5 | $111,547 | $85,217 | $448,639 | 🔴 Rent |
| 6 | $129,198 | $102,910 | $462,098 | 🔴 Rent |
| 7 | $145,983 | $120,784 | $475,961 | 🔴 Rent |
| 8 | $161,862 | $138,820 | $490,240 | 🔴 Rent |
| 9 | $176,791 | $156,996 | $504,947 | 🔴 Rent |
| 10 | $190,724 | $175,290 | $520,096 | 🔴 Rent |
Monthly Cost Breakdown
Buying
Mortgage: $2,014
Maintenance: $484
Property Tax: $708
Total Monthly: $3,206
Does not include down payment of $77,400
Renting
Monthly Rent: $1,900
Annual Increase: +3% assumed
Opportunity Gain: Down payment invested at 7%/yr
Total Monthly: $1,900
Rent increases 3%/yr in projection
Can you afford to buy in Austin?
Monthly net income: $5,501
Monthly mortgage: $2,014
Mortgage-to-income ratio: 36.6%
🟡 Manageable but tight
Down payment savings needed: $89,010
At 20% savings rate, years to save: 6.7 years
Notes & Assumptions
This calculator uses the following assumptions for Austin in 2026: property price $4,300/m² × 90m², mortgage rate 6.1% over 25 years, 20% down payment, transaction costs 3.0%, annual maintenance 1.5%, property appreciation 3.0%/yr, rent inflation 3%/yr, opportunity cost of capital 7%/yr. No state income tax but among the highest property taxes in the US (~1.8-2.1% of value/yr). 30yr fixed ~6.1%.
Same calculator, other cities
Frequently Asked Questions
Is it better to rent or buy in Austin in 2026?
In Austin, renting is financially preferable over most time horizons due to the high price-to-rent ratio of 20x. Buying may still make sense for lifestyle reasons or if you plan to stay longer than 25 years.
How much do you need to earn to buy in Austin?
A typical 90m² apartment in Austin costs approximately $387,000 in 2026. With a 20% down payment of $77,400, the monthly mortgage is $2,014. Financial advisors recommend keeping mortgage payments below 28–35% of net monthly income, which implies a gross salary of at least $80,549 per year to comfortably afford this purchase in Austin.
What is the price-to-rent ratio in Austin?
The price-to-rent ratio in Austin is approximately 20x in 2026 — meaning it takes 20 years of rent to equal the purchase price. A ratio above 20 generally favours renting; below 15 generally favours buying. Austin's ratio of 20 suggests the decision depends heavily on your time horizon and expected appreciation.
How this calculator works
This calculator compares the total cost of renting versus buying over a configurable time horizon. It includes mortgage payments, transaction costs, maintenance, property appreciation, rent inflation, and the opportunity cost of tying up capital in a down payment.
What's included
- Mortgage principal and interest payments
- Transaction costs (stamp duty, notary, etc.)
- Annual maintenance and property tax
- Property appreciation and rent inflation
- Opportunity cost of capital (7% default)
What's not included
- Renovation or major repair costs
- Home insurance premiums
- Tax relief on mortgage interest (varies by country)
- Emotional or lifestyle value of ownership
Data sources: Central bank mortgage rate data, local property price indices, Numbeo rental averages, and official transaction cost schedules. Updated for 2026.