Buying a house in Texas offers several advantages, including no state income tax, competitive housing prices in non-urban areas, and a favorable tax structure for homeowners. However, key challenges include higher property taxes in some counties, fluctuating insurance costs due to natural disasters, and a competitive market in major cities like Austin and Dallas.

The absence of state income tax significantly reduces long-term homeownership costs, saving residents an average of $8,000 annually compared to states with a 5-10% income tax rate. Texas’ median home price ($400,000 in 2023) is 15% below the U.S. average, according to the Texas Association of Realtors. Property taxes, however, range from 1.6% to 2.5% of assessed value county-wide, with Harris County averaging $3,500 annually for a $500,000 home. Natural disasters like hurricanes and floods in coastal areas increase insurance premiums by 20-30%, as noted by the Texas Department of Insurance. While homestead exemptions reduce school district taxes by 20%, property tax burdens in wealthy counties like Collin or Denton exceed $5,000 yearly. The competitive market, driven by population growth (3.5% annual increase since 2020), results in 40% above asking price offers in Austin, per Redfin data. Legal considerations, such as stricter eviction laws and HOA regulations, further complicate transactions. Overall, Texas remains attractive for budget-conscious buyers but requires careful assessment of local tax and risk factors.