Side-by-side comparison of mortgage costs, property taxes, closing costs, and homeowners insurance between New York and Texas. Updated for 2026.
Texas wins 4 of 6 cost categories, making it the more affordable state for homebuyers overall. With a median home price of $310K and lower overall costs, Texas offers meaningful savings compared to New York. 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.
The monthly payment difference is $738/month — that’s $8,856/year or $266K over the life of a 30-year loan. Buying in Texas is the more affordable option based on median home prices with identical loan terms.
Based on the 28% debt-to-income rule — your monthly housing payment should not exceed 28% of gross monthly income.
To afford the median home in New York, you need a household income of approximately $146K/year. In Texas, you need $114K/year — less by $32K/year. That $32K income gap means Texas is accessible to a significantly wider range of households.
Texas offers meaningfully lower home prices than New York, with median prices running 28% less ($120K difference). This gap translates to both a smaller loan and lower monthly payments. First-time buyers priced out of New York may find Texas far more accessible, particularly when combined with local down payment assistance programs.
Property tax rates are similar in both states (New York: 1.72%, 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 New York ($2,100/year) compared to Texas ($3,800/year). That's an extra $1,700 per year — or $142/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.
Closing costs are a one-time but significant expense. New York averages $12K in closing costs (2.8% of purchase price) while Texas averages $5K (1.7%). Much of New York's higher costs come from its 0.8% transfer tax, which adds $3K to the median home purchase. Budget for these upfront costs — they affect how much cash you need on hand at closing.
Both states offer down payment assistance for first-time buyers. New York's SONYMA Achieving the Dream provides Up to $15,000 DPAL, 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: New York and Texas are broadly similar in housing costs, with only $738/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.