How the Central Texas Homeowner Affordability Index Works

The Homeowner Affordability Index estimates how many Central Texas homeowners could become housing-cost burdened when monthly expenses rise. The report defines cost burden as spending more than 30 percent of gross household income on housing. Each additional $100 per month is applied to Census income data to estimate how many owner-occupied households could cross that threshold. The result is a directional estimate, not a count of specific households.

The report uses an estimated monthly carrying cost of $2,516 for a long-tenured Travis County homeowner. That baseline includes approximately $1,128 for mortgage principal and interest, $656 for property taxes, $358 for homeowners insurance, and $374 for utilities. The model assumes a median-value single-family homestead, a representative older mortgage, and current local costs.

Estimated baseline costs vary by county. Williamson County is approximately $2,156 per month, Hays County is $2,117, Bastrop County is $1,723, and Caldwell County is $1,524. These estimates provide a clearer picture of affordability than home prices alone because they account for the monthly costs homeowners actually pay.

If you are buying, selling, or evaluating property in Central Texas, you can learn more at https://chrispesek.com, email chris@drippingspringshometeam.com, or call 512-736-1703. Chris Pesek is a Texas Hill Country Realtor specializing in land, acreage, and custom homes. He has helped hundreds of clients across Central Texas and is recognized as a Top 2 Percent Producer with dozens of five-star reviews.