10/10/2026
Covered But Costly: How Homeowners Insurance Impacts Affordability
Publisher: Texas Real Estate Research Center at Texas A&M University
Published: July 27, 2026
Authors: Tian Su, Ph.D., and Mallika Natarajan
Why it matters: Insurance can materially change a buyer’s payment and qualification even when two homes have similar prices.
The research found that Austin homeowners averaged approximately $181 per month for property insurance in 2024, following a 16.9% increase in 2023.
Texas insurance costs also remained substantially higher relative to home values than the national average.
Texas Real Estate Research
Three practical takeaways
1. Request insurance estimates before the option period ends. Roof condition, prior claims, construction materials and location can cause major premium differences. An early quote reduces the risk of a payment surprise shortly before closing.
2. Compare homes by total monthly cost. Add the actual insurance quote to principal, interest, taxes, mortgage insurance and HOA dues. A slightly more expensive property with a newer roof and lower insurance premium may have the better overall payment.
3. Treat insurability as part of property selection. Ask about roof age, flood-zone status and relevant wind or hail exposure during the search. If coverage is expensive, use that information when deciding whether to proceed, negotiate repairs or request seller assistance.
