Texas' home ownership cost is rising

Plus: Texas led the nation in tourism spending

September 16, 2025

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⏰ G'morning, this is Texas Real Estate News. The email that makes you smarter about the real estate industry, in 5 minutes or less.

1. Texas' home ownership cost is rising

The cost of owning a home in Texas increased in 2024, according to new data from the U.S. Census Bureau—even as state lawmakers worked to cut property taxes.

  • The median Texas homeowner paid $1,452 in monthly costs in 2024, a 2.7% increase from the previous year. That figure is now about 7% higher than in 2019. On average, a Texas homeowner with a mortgage spent 22.2% of their income on these costs last year.

Additionally, homeowners saw relief on their property tax bills last year. The average bill dropped 6.6%, from about $4,400 in 2023 to just over $4,100 in 2024, when adjusted for inflation.

2. Homeowners insurance costs just hit a new high

Property insurance costs for U.S. homeowners with mortgages climbed to a record in the first half of 2025, according to the latest ICE Mortgage Monitor report.

The average annual insurance payment on a mortgaged single-family home jumped 11.3%—about $20 per month—compared to last year, pushing the typical bill to nearly $2,370. That now represents 9.6% of average mortgage-related expenses, the largest share on record.

Over the past five and a half years, the average property insurance payment has risen nearly 70%, more than double the increase for principal, interest, and taxes.

A MESSAGE FROM DAVE YOUR MORTGAGE GUY

There’s a lot of confusion around the FHA 90-Day Rule, and it can kill deals unnecessarily. So I broke it all down in this quick video, what the rule really says and how to avoid delays.

✅ When the 90-day clock actually starts
✅ What buyers can do before Day 91
✅ How to close faster without breaking FHA rules

If you're working with FHA buyers or flippers, this is must-know stuff. Let's save you some headaches.

3. Catch up quick

📉 Consumer sentiment drops to lowest point since May. (SurveyOfConsumers)

🥂 $28.5M Texas estate where U.S. presidents once partied hits the market. (Chron)

✂️ Opendoor’s new chairman wants to slash 85% of the workforce. (CNBC)

🏡 Texas-based Hawthorne Capital named fastest-growing real estate company. (FinancialTimes)

🤝 Trump pick Stephen Miran confirmed as Fed governor. (CNN)

4. Zillow challenges Compass' request to depose co-founder

Compass is seeking to depose Zillow co-founder Lloyd Frink as part of its effort to block enforcement of Zillow’s listing standards policy. The policy bans listings that have been publicly marketed for more than one business day before being entered into the MLS.

Compass argues that Frink holds information about the policy “that no other witness can provide.” Zillow disputes this claim, pushing back in a motion filed Friday.

Compass has asked to depose Frink for four hours on Sept. 24, saying he has “unique and important information” and can speak “directly to Zillow’s economic and strategic incentives to conspire and adopt” its listing access standards.

5. Austin OKs new rules regulating short-term rentals

The Austin City Council passed a new set of regulations tightening oversight of short-term rental (STR) properties across the city during its Thursday meeting.

Under the new rules:

  • If an individual owns more than one STR, the properties must be at least 1,000 feet apart unless they are located on a site with four or more dwelling units.

  • On a site with four or more dwelling units, an owner may operate at least one STR but no more than 25% of the total units.

The regulations also add a city-issued license requirement for STR operators. Platforms such as Airbnb and Vrbo will be required to display these licenses on their listings.

“We wanted to preserve that housing, preserve the neighborhood aspect, but also recognize that this is a tool for people to be able to afford to live here. If you go and you list on Airbnb and you don't have a license, the city can go tell Airbnb you need to take that person off.”

Ryan Alter, Council member

6. Texas led the nation in tourism spending in 2024

Texas led the nation in tourism spending in 2024, with $36.7 billion, surpassing traditional destinations such as New York and California, according to a new Travel and Tour World report.

The state saw a 3.1% increase in tourism economic output from the previous year, and also ranked higher than Virginia, North Carolina, and Tennessee.

The report also touched on aspects of the Texas economy that led to the increase in spending, like musical festivals, cultural attractions, and outdoor sightseeing.

A MESSAGE FROM PACASO

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