Side-by-side comparison of mortgage costs, property taxes, closing costs, and homeowners insurance between Michigan and Texas. Updated for 2026.
Michigan wins 5 of 6 cost categories, making it the more affordable state for homebuyers overall. With a median home price of $240K and lower overall costs, Michigan offers meaningful savings compared to Texas. Both states offer first-time buyer programs — explore the state pages for full details.
Estimated PITI payments assuming 10% down, 6.5% rate, 30-year fixed mortgage with PMI.
Buying in Michigan saves you approximately $748/month ($8,976/year) compared to Texas, based on median home prices with identical loan terms.
Michigan offers meaningfully lower home prices than Texas, with median prices running 23% less ($70K difference). This gap translates to both a smaller loan and lower monthly payments. First-time buyers priced out of Texas may find Michigan far more accessible, particularly when combined with local down payment assistance programs.
Property tax rates are similar in both states (Michigan: 1.54%, Texas: 1.8%), so taxes shouldn't be the deciding factor in your relocation decision. Instead, focus on differences in home prices, insurance costs, and state-specific programs. Both states collect roughly comparable property tax revenue relative to home values.
Homeowners insurance is significantly cheaper in Michigan ($1,800/year) compared to Texas ($3,800/year). That's an extra $2,000 per year — or $167/month — eating into your budget in Texas. Texas's high insurance costs are often driven by severe weather risks (hurricanes, tornadoes, or wildfires), which also affect availability of coverage.
Both states offer down payment assistance for first-time buyers. Michigan's MSHDA DPA provides Up to $7,500 DPA, while Texas's TDHCA My First Texas Home offers Up to 5% DPA grant. These programs can significantly reduce your upfront costs and make homeownership accessible even if you haven't saved a full 20% down payment. Check eligibility requirements on each state's housing finance agency website — income limits and purchase price caps apply.
The bottom line: Michigan and Texas are broadly similar in housing costs, with only $748/month separating them in total PITI payments. In cases like this, your decision should be driven by lifestyle preferences — job opportunities, climate, proximity to family, and quality of life — rather than pure cost savings. Either state offers a reasonable path to homeownership.