The Hidden Truth About Texas Homeowner Costs: Why Property Tax Cuts Don't Always Mean Savings

A deep-dive analysis reveals surprising trends across 25 Texas cities and metro areas that every homeowner needs to understand

Texas homeowners are facing a puzzling reality in 2024: Property taxes have decreased in many cities, yet total homeownership costs continue to climb.

Our analysis of comprehensive Texas Tribune and U.S. Census Bureau American Community Survey data spanning 2019 to 2024 reveals counterintuitive trends that challenge conventional wisdom about homeownership costs in the Lone Star State.

The Paradox: Lower Property Taxes, Higher Total Costs

Here's the shocking reality facing Texas homeowners: When adjusting for inflation, 19 out of 25 (76%) cities analyzed actually experienced property tax decreases between 2019 and 2024. 

However, their total homeownership costs still increased. Take Abilene, for example. Residents saved $130 annually in property taxes over the past five years, yet their total homeownership costs surged by 13.1% — the highest increase statewide.

Similarly, Tyler homeowners saved $160 in property taxes but faced a 10.5% increase in total costs, translating to an additional $1,640 per year.

When over three-quarters of cities see tax decreases but costs still rise, that tells us non-tax expenses are now driving total homeownership costs in Texas. — Sam Sosa, Sr. Property Tax Consulting Manager, Ownwell

Annual Homeowner Costs Across Texas the Past Five Years

Homeownership costs, including utilities, insurance, and maintenance, have increased by 6.6% for Texans.

Below are the annual owner costs from 2019 to 2024, along with the percentage changes in several Texas areas.

Source: U.S. Census Bureau (all figures adjusted for 2024 inflation)

As you can see in the data, many of the more densely populated areas, such as Houston, San Antonio, the DFW area, and Austin, experienced a range of 2.5% to 6.7% increases in monthly owner costs from 2019 to 2024. Now, let’s examine which areas had the most significant increases and decreases in property taxes from 2019 to 2024.

Annual Property Taxes Across Texas Over the Past Five Years

The new census data show that the median amount Texas homeowners have paid in property taxes is decreasing. In fact, it has dipped below the pre-pandemic level by 1.5% when adjusted for inflation.

Rural areas were on either side of the spectrum in terms of property tax costs over the past five years. For instance, Sherman-Denison, McAllen-Edinburg-Mission, Brownsville-Harlingen, and San Angelo increased by 6.6% to 11.6%.

Other rural areas and college towns, such as Lubbock, Wichita Falls, Laredo, College Station-Bryan, and Texarkana, saw their property taxes decrease by a whopping 9.5% to 18.6%.

Where Property Tax Relief Shows Up in Real Net Costs

When we combine annual homeowner costs (including maintenance, insurance, and utilities) with yearly property tax bills, a different picture emerges.

Across Texas, the average total homeowner costs rose about 5% from 2019 to 2024, despite a 6.6% drop in tax bills. Insurance and utilities more than offset the tax savings in most markets.

Of the 25 areas studied, only five experienced a decrease in overall net homeownership costs.

The Real Numbers: What Texas Homeowners Actually Pay

Metros Where Homeowners Saw the Biggest Net Increases

Over the past five years, regions experienced sharp jumps in overall homeowner costs, even after tax relief:

• Abilene: +13.1%

  • Taxes fell 6.1%, but annual insurance and utilities surges drove costs higher at 16.9%.

• Brownsville–Harlingen: +11.7%

  • One of the steepest jumps due to annual homeowner costs (12.2%) and property taxes (9.7%) rising.

• San Angelo: +10.9%

  • Homeowners absorbed both higher taxes (6.6%) and non-tax costs (11.9%).

• Tyler: +10.5% 

  • Among one of the hardest hit in East Texas.

• Wichita Falls: +9.9%

  • Higher ownership costs of 14.8% heavily overshadowed tax relief of -9.5%.

In these markets, insurance and utility bills have erased tax savings and then some, leaving homeowners with heavier budgets than they had before the pandemic.

Major Metropolitan Areas Performance

The state's largest metros showed surprising restraint compared to smaller cities:

• Dallas-Fort Worth-Arlington: 4.7% increase 

  • $27,700 total annual costs in 2024

• Houston-Pasadena-The Woodlands: 3.9% increase 

  • $25,270 total annual costs in 2024

• San Antonio-New Braunfels: 5.1% increase

  • $21,460 total annual costs in 2024

• Austin-Round Rock-San Marcos: 0.2% increase 

  • $31,260 total annual costs in 2024

All four major metros performed better than the state average of 5.0% increase, suggesting larger markets offer better cost stability for homeowners.

The Biggest Surprise Winners and Losers

True Relief: Where Net Costs Fell

 Five Texas cities bucked the trend entirely, delivering real savings to homeowners:

• Laredo: -14.0% decrease (biggest winner statewide)

• Midland: -9.2% decrease

• Texarkana: -8.7% decrease

• College Station-Bryan: -4.7% decrease

• El Paso: -1.7% decrease

Cities With the Steepest Increases

Meanwhile, other smaller Texas cities faced the most considerable cost pressures:

• Abilene: +13.1% ($1,742 annual increase)

• Brownsville-Harlingen: +11.7%

• San Angelo: +10.9% ($1,600 annual increase)

• Tyler: +10.5% ($1,640 annual increase)

Geographic Strategy Matters

Our analysis shows clear geographic patterns:

• Large metros generally outperform smaller cities in cost control

• Border cities like Laredo offer surprising value

• Energy-dependent economies (like Midland) can be volatile but sometimes offer unexpected savings

• College towns like College Station-Bryan may provide stable, cost-effective markets

The Property Tax Relief Paradox Explained

Why are homeowners still paying more despite property tax cuts? The answer lies in the broader homeownership cost ecosystem:

1. Insurance Premium Explosions

Texas insurance costs have skyrocketed due to extreme weather events, litigation trends, and supply chain disruptions. According to the Texas Comptroller of Public Accounts, homeowners saw insurance premiums increase by an average of 41% annually, often offsetting property tax savings.

The 41% insurance premium increase is staggering and completely outside homeowners' control through property tax strategies alone.

You need to be just as aggressive about shopping for insurance and utilities as you are about tax assessments. — Sam Sosa, Sr. Property Tax Consulting Manager, Ownwell

2. Utility Rate Increases

Energy costs surged across Texas, with electricity rates increasing by 25% from 2020 to 20204.. These monthly increases compound quickly over a year. According to one national report, Texas ranks ninth in utility costs, with an average of $571, accounting for 8.66% of homeowners’ average income.

3. Maintenance and Repair Inflation

Labor and material costs for home maintenance increased dramatically, with some contractors raising rates by 30% or more since 2019. NAHB’s national survey found that in 2024, construction costs accounted for 64.5% of the average price of a new home, compared to only 60.8% in 2022.

4. Hidden Fee Creep

HOA fees, municipal service charges, and other quasi-governmental fees increased in many areas, often flying under the radar of cost-conscious homeowners. For instance, in 2024, HOA fees in Fort Worth increased by 14.6%.

The Two Texas Steps Every Homeowner Should Take

1. Protest Your Property Taxes (Even If They Went Down)

Just because your property taxes decreased doesn't mean they're correct. Texas property owners have the right to appeal their assessments, and 86% of Ownwell customers who protest receive reductions, saving an average of $1,102 annually.

The key insight: Many homeowners who saw property tax decreases could have seen even larger decreases if they had protested correctly. 

We found that in 2023, homeowners in seven major Texas counties who didn’t protest had an average market value 1.58% higher than those who protested. In 2024, this dropped to 1.38%.

2. Audit Your Insurance and Utility Bills and Rotate Providers

Since these categories are driving much of the cost increases, they represent your most significant savings opportunities:

• Shop for insurance annually with Ownwell: Our platform compares rates from various carriers to find you the best coverage at the lowest price.

• Negotiate utility plans with Ownwell Energy: Many Texans overpay for energy. Ownwell Energy helps you find competitive rates and better plans in multi-provider areas and markets.

• Bundle strategically with Ownwell: We help you analyze your current bundles and determine if a different approach can save you money.

Take action: Discover how Ownwell can help you reduce your insurance and utility bills. Get a free home savings estimate with just your address analysis today!

Methodology

This analysis utilized data from the Texas Tribune's September 11, 2025, report on Texas housing costs, which was based on the U.S. Census Bureau's American Community Survey 2024 release. 

The study examined 25 Texas metropolitan statistical areas over a five-year period (2019-2024), combining Census-reported median property tax payments with monthly homeowner costs (including insurance, utilities, and maintenance) to calculate total annual homeownership expenses. All 2019 figures were adjusted to 2024 dollars using CPI data, focusing on trends after Texas property tax relief legislation.

Key Calculations:

• Property tax costs: Extracted from ACS median property tax payments by metropolitan statistical area

• Monthly homeowner costs: Census-reported median monthly costs including mortgage payments, property taxes, insurance, utilities, fuels, and maintenance

• Annual homeowner costs: Monthly costs multiplied by 12 to calculate yearly totals

• Total homeowner costs: Combined annual property tax costs with annual homeowner costs to determine complete ownership expenses

• Inflation adjustment: All 2019 figures adjusted to 2024 dollars using CPI data