Texas Homeownership: How Hidden Costs Can Blow Your Budget.
Owning a home in Texas comes with more than just a mortgage. While your monthly mortgage might feel like the bulk of your expenses, non-mortgage costs—taxes, insurance, utilities, internet, and maintenance—often reach half to two-thirds of your payment. Ignoring them can turn a manageable budget into a financial scramble.
Why Texas feels it more than most states
- High property taxes: Texas’ effective rate averages 1.47%, some of the highest nationally.
- Rising insurance premiums: Rates jumped ~19% in 2024, after a 21% increase the year prior.
- Maintenance & utilities: Clay soils, hail risk, and aging HVAC systems all add to predictable upkeep costs.
What drives non-mortgage costs
- Property taxes & insurance: Typically the largest chunk.
- Utilities & internet/cable: Energy costs spike in Texas summers.
- Maintenance & repairs: Industry guidance recommends 1%–2% of home value yearly; larger homes or high-risk areas may need more.
Texas-smart strategies to control costs
1) Tame predictable bills
- Challenge high appraisals and ensure homestead exemptions are in place.
- Shop insurance annually and consider higher deductibles paired with emergency savings.
- Audit utilities—seal windows/doors, tune HVAC, and fix duct leaks.
2) Prevent surprise expenses
- Roof hardening: Impact-resistant shingles (UL 2218 Class 4) and IBHS FORTIFIED practices reduce storm risk.
- Leak alarms & shut-offs: $15–$50 sensors under sinks or behind washers prevent costly water damage.
- Maintenance budget: Set aside 1%–2% of home value per year for wear-and-tear projects.
3) Coastal & storm-smart planning
- If you live along the Gulf Coast, verify TWIA requirements before replacing roofs, windows, or doors. Ensure WPI-8/WPI-8E inspections are completed to maintain coverage.
Quick Texas homeowner checklist
- Calculate your full monthly payment including hidden costs (~$1,500 extra).
- Lock in homestead & local exemptions; track protest deadlines.
- Schedule preventative inspections: roof, attic, gutters, grading, and HVAC.
Bottom line
Non-mortgage costs can easily consume half to two-thirds of your mortgage in Texas. Staying proactive on taxes, insurance, utilities, and maintenance keeps homeownership affordable and protects against surprise expenses.
Need help turning prevention into action? Ask a vetted pro at letsaskjack.com, then hire licensed local trades through TradeCrews to handle repairs, upgrades, or storm-proofing before your costs spiral.