Why Central Texas Homeownership Costs Keep Climbing

Property taxes remain one of the largest pressures on Central Texas homeowners. According to the 2026 Central Texas Homeowner Affordability Report, statewide property tax levies increased roughly 22 percent from 2021 through 2025. In Travis County, about 187,000 property owners protested their appraisals in 2024, representing approximately 39 percent of all parcels. That level of protest shows rising assessments are no longer affecting only a small group of homeowners.

Voter-approved bonds can add another layer to the tax bill. The report estimates that $1 billion in City of Austin general obligation bonds could cost a Travis County homeowner inside Austin about $108 per year, or roughly $2,710 over 25 years. Individual increases may appear manageable, but overlapping city, county, school district, and community college bonds can compound over time.

Insurance and utilities are also rising. Texas homeowners insurance premiums reportedly increased about 60 percent from 2019 through 2024. For an owner without a mortgage, insurance may now represent approximately 14.2 percent of the monthly housing carrying cost. Utility providers are also implementing multiyear rate increases, adding further pressure to household budgets.

If you are looking at land, acreage, or custom home property in the Texas Hill Country, 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.