If you are weighing the rent or buy decision in Denton County Texas you have come to the right place. Denton County TX contains a variety of homes to rent or buy. There are options for single family rentals and apartments. There are also plenty of single-family homes for purchase, including new or resale homes.

The Cost to Rent in Denton County TX

Looking at third quarter 2024 closed single-family leases in Denton County Texas, here are the average rents paid:

  • 2-bedroom 1-bath – $1,631 per month
  • 3-bedroom, 2-bath – $2,350 per month
  • 4-bedroom, 2 bath – $2,578 per month
  • 4-bedroom, 3 bath – $3,254 per month

The good news for prospective Denton County TX home buyers or renters is the fact that Denton County real estate is still more affordable than the city of Dallas. You can find 1-bedroom apartments in Denton County below $1400 per month. 2-bedroom apartment rents in Denton County are below the Dallas median, with most developments below $1800 per month.

Cost to Buy in Denton County TX

Here’s what home buyers paid on average for purchasing a Denton County home in the third quarter of 2024:

  • 2-bedroom, 1-bath – $252,819
  • 3-bedroom, 2-bath – $401,522
  • 4-bedroom, 2-bath – $448,641
  • 4-bedroom, 3-bath – $641,572

To see how much the purchase cost compares to the monthly rental rates shown above, let’s take that 3-bedroom, 2-bath home price and crunch some numbers. Assuming you put 20 percent down on that 3-bedroom Denton County home with a mortgage rate of 6.5 percent, this is what it might look like.

  • $2030 – Principal and Interest on $321,218 mortgage (20% down payment, 6.5% 30-yr fixed)
  • $550 – property taxes ($6,600 annual bill with your $100,000 homestead exemption)
  • $167 – hazard insurance (0.5% of property value annually)
  • $ 67 – homeowners association ($800 annual HOA bill)
  • $ 100 – miscellaneous repairs
  • $2,914 – Total Estimated Monthly Expense for Ownership

Even if you strip out the allowance for miscellaneous repairs, the cost of buying a 3-bedroom Denton County home is more than the cost of renting. Accounting for unexpected repairs and expenses, renting a home is significantly less expensive for Denton County residents in 2024.

Housing Affordability is a Challenge in North Texas

The rapid increase in home prices seen in the DFW area during the past several years has certainly affected the rent vs buy equation. Joining the property ladder has become quite expensive in North Texas. Home price inflation has exceeded rent inflation in most DFW housing markets in recent years. The Atlanta Fed’s Home Ownership Affordability Monitor provides a good breakdown of the real costs of buying a home in the DFW area.

DFW Home Cost Breakdown Aug 2024

Note! Third party aggregator sites often publish rent or buy calculations using flawed methodology.  It’s important to look at the methodology or assumptions used. If you can’t see all of the underlying assumptions or methodology, the results aren’t very useful. Many real estate websites attempt to make buying a home look more affordable than it really is, particularly if they are in the business of selling ads to Realtors.

Do Your Own Due Diligence

I would encourage any prospective home buyer or renter to do their own research and crunch the numbers, paying particular attention to the property tax obligations for local homes. While Texas does not have a state income tax, we do have property tax rates which are far higher than the national average. That remains true even after the property tax compression passed by the state legislature in 2023.

Real estate is always local, so it pays to do your own research and decide what’s best for you and your budget.  If you have a good down payment and solid credit you will probably be better off purchasing a Denton, Texas home rather than renting.  The rent vs buy decision is not always as easy as some people make it seem. It often boils down to personal choice. To see what’s available in the local Denton Texas market call or email today.

The Rent vs Buy Tradeoff

Renting a home does offer a few advantages. Flexibility and mobility are near the top of that list. There’s also the added bonus of having no maintenance since the landlord is generally responsible for repairs and upkeep of the property. If you are fortunate enough to save some money with your rent, you might be able to invest those savings in the market as an inflation hedge.

Buying a home can still be a great option. The purchase of a home can be a good store of value and an inflation hedge. One of the key benefits of home ownership for many families is that single-family homes often act as a fixed savings account. The magic of a fixed-rate mortgage over 30 years is an incredible gift for many homeowners. Patience and consistency with monthly payments generally results in equity appreciation over time. Of course there’s also the benefit and freedom of knowing that you own the home. You can work on it, remodel it or decorate to your own liking and taste.

If you are looking to buy or rent your next home in Denton County Texas, give us a call!