This time a year ago, the Texas real estate market was a lot more competitive, primarily due to lack of inventory. In 2025, inventory in the Lone Star State has vastly increased. This substantial boost in available homes greatly opens up opportunities for first-time buyers. Additionally, the number of homes sold was down 5.4% year over year, as of April. When home sales numbers are down, prices fall.
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You’ve got two big incentives to buy in Texas overall, but there’s a third one in select cities: paying less than you would if renting. In a new study, GOBankingRates analyzed the average cost of rent and mortgages to find where rent is higher than the average mortgage. These are the 13 cities in Texas where rent is substantially higher than the average mortgage.
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13. Seagoville
Average value of single-family home: $274,439
Average monthly mortgage cost: $1,436
Average monthly rent: $1,961
How much more rent costs than mortgage, annually: $6,308
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12. Port Arthur
Average value of single-family home: $108,467
Average monthly mortgage cost: $567
Average monthly rent: $1,098
How much more rent costs than mortgage, annually: $6,371
11. Brownsville
Average value of single-family home: $192,471
Average monthly mortgage cost: $1,007
Average monthly rent: $1,547
How much more rent costs than mortgage, annually: $6,480
10. Glenn Heights
Average value of single-family home: $334,328
Average monthly mortgage cost: $1,749
Average monthly rent: $2,294
How much more rent costs than mortgage, annually: $6,542
9. La Marque
Average value of single-family home: $227,795
Average monthly mortgage cost: $1,192
Average monthly rent: $1,751
How much more rent costs than mortgage, annually: $6,717
8. Lancaster
Average value of single-family home: $278,488
Average monthly mortgage cost: $1,457
Average monthly rent: $2,021
How much more rent costs than mortgage, annually: $6,767
7. Watauga
Average value of single-family home: $276,674
Average monthly mortgage cost: $1,447
Average monthly rent: $2,038
How much more rent costs than mortgage, annually: $7,086
6. Forest Hill
Average value of single-family home: $227,152
Average monthly mortgage cost: $1,188
Average monthly rent: $1,802
How much more rent costs than mortgage, annually: $7,358
5. Del Rio
Average value of single-family home: $207,753
Average monthly mortgage cost: $1,087
Average monthly rent: $1,800
How much more rent costs than mortgage, annually: $8,558
4. Groves
Average value of single-family home: $166,719
Average monthly mortgage cost: $872
Average monthly rent: $1,595
How much more rent costs than mortgage, annually: $8,674
3. Balch Springs
Average value of single-family home: $231,719
Average monthly mortgage cost: $1,212
Average monthly rent: $1,946
How much more rent costs than mortgage, annually: $8,802
2. Mission
Average value of single-family home: $222,237
Average monthly mortgage cost: $1,163
Average monthly rent: $1,941
How much more rent costs than mortgage, annually: $9,341
1. Kingsville
Average value of single-family home: $139,640
Average monthly mortgage cost: $731
Average monthly rent: $1,661
How much more rent costs than mortgage, annually: $11,167
Editor’s note: Photos are for representational purposes only and might not reflect the exact locations listed in this article.
Methodology: For this study, GOBankingRates analyzed the average cost of rent and mortgages to find places where rent is more expensive. Using Zillow Research Data’s Zillow Home Value Index and Zillow Observed Rental Index the average single-family home value and average rental cost per month can be sourced. By assuming a 20% down payment and using the national average 30-year fixed mortgage rate, as sourced from the Federal Reserve Economic Data, the average mortgage cost can be calculated. The difference in rent and mortgage was calculated and the top 100 places with a cheaper rent than mortgage were kept for this study. The livability index was sourced from AreaVibes and included as supplemental information. The total population, population ages 65 and over, total households, and household median income were all sourced from the U.S. Census American Community Survey and included as supplemental information. To be qualified for this study, all places had to have all data sources available. All data was collected on and is up to date as of April 21, 2025.
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This article originally appeared on GOBankingRates.com: 13 Cities in Texas Where Renting Is Now More Expensive Than Owning
