Texas Homeownership Costs Rise in 2024 Despite Property Tax Relief

Despite legislative efforts to reduce property taxes in Texas, the overall cost of homeownership increased in 2024 due to rising expenses such as insurance and utilities. The U.S. Census Bureau reported a 6.6% decrease in inflation-adjusted property tax bills, from around $4,400 in 2023 to just over $4,100 in 2024, providing some tax relief for homeowners. However, these savings were offset as the median monthly cost for Texas homeowners rose by 2.7% to $1,452, reflecting heightened financial burdens from non-tax housing expenses. The proportion of income spent by homeowners with mortgages on housing-related costs reached 22.2%, aligning with national trends of elevated homeowner financial strain. Concurrently, Texas renters experienced a slight moderation in rent growth, with a 1.4% increase in 2024, though rents remain approximately 10% higher than pre-pandemic levels in most areas. Regional disparities were noted, with faster rent increases in Houston, Dallas-Fort Worth, and surrounding areas compared to some declines in other parts of the state. Income growth in Texas has been modest, rising only 2.2% year-over-year and 1.2% since 2019 after inflation adjustments. This modest income growth contrasts with ongoing increases in living costs, contributing to a wider income inequality gap in major Texas urban regions such as Houston and San Antonio, while some easing was observed in cities like Austin and Dallas. The data underscores the complex interplay between tax policy, insurance costs, housing affordability, and income dynamics, highlighting challenges for policymakers and insurance professionals monitoring market trends and homeowner burdens in Texas.