08.01.2023

SUBSCRIBE | REFER

Today’s Forecast

69º | Rainy | 87% chance of rain | Sunrise 7:28 a.m. | Sunset 5:42 p.m.

🏠 Home is where the equity is

Navigating buying vs. renting in ATX

The Lake Bluff house is located in West Austin. | Photo via Airbnb

The Austin metropolitan area is one of the fastest-growing places in the world, and it’s probably not a surprise to you that the cost of living mirrors its popularity.

Buying a house within city limits will set you back approximately $550,000 as of June, while renting a one-bedroom apartment costs an average $1,667 per month in rent.

Although it is typically more affordable to rent in the Capital City, which one is more financially lucrative?

Affordable vs. financially favorable

You’ve heard the phrase “you’ve got to spend money to make money,” but you have to have money to spend it. No matter if you rent or own, each option comes with financial implications — renters forgo the chance to build equity, while homeowners might forgo the opportunity to invest elsewhere.

Research shows that 95% of Austin’s homes are cheaper to rent than buy — akin to cities like New York, Las Vegas, and Phoenix. It’s important to note that renting is oftentimes not a deliberate choice, but a financial necessity.

Plus, buying a home in ATX depends on a few factors: income, wealth, and credit. According to the Austin Board of Realtors’ Buy vs. Rent Index, homeowners had more than 40 times the median wealth of renters.

The three buyers

A graphic showing buying vs. renting favorability in ATX over the years. — Real estate volatility tends to hit hardest for first-time homebuyers.
|
Graphic courtesy Austin Board of Realtors

The Buy vs. Rent Index found that buying a home tends to generate more wealth than renting by studying three types of buyers: first-time homebuyers, move-up buyers, and luxury buyers.

Using length of ownership and the value generated for buyers who purchased a home from 2007-2022, homeownership was more favorable than renting 77.6% of the time for first-time buyers, 90.1% for move-up buyers, and 97.4% for luxury buyers. In order to stay in the green, first-time buyers typically need to retain their home for at least five years.

What about new homeowners?

Asked

Have you or are you planning to buy a house this year?

A. Yes
B. No

Home sweet home

Events

Tuesday, Aug. 1

“Wizard of Oz” | Now-Sunday, Aug. 6 | Times vary | McCullough Theatre, 2375 Robert Dedman Dr., Austin | $35-$45 | Texas Performing Arts and Summer Stock Austin partner to perform the classic story with Dorothy, Toto, and the Wicked Witch of the West.

Wednesday, Aug. 2

“The Big Chill” | Wednesday, Aug. 2 | 7:30 p.m. | The Paramount Theatre, 713 Congress Ave., Austin | $11 | The film featuring Glenn Close and Jeff Goldblum turns 40 years old this year.

Thursday, Aug. 3

One Night of Queen | Thursday, Aug. 3 | 8 p.m. | ACL Live, 310 W. Willie Nelson Blvd., Austin | $30-$50 | This two-hour show pays homage to the artist’s most iconic works.

Friday, Aug. 4

Dominic Fike | Friday, Aug. 4 | 8 p.m. | Moody Amphitheater, 1401 Trinity St., Austin | $31-$202 | Hether will also perform during the “Don’t Stare at the Sun” tour.

Saturday, Aug. 5

Kenny Loggins | Saturday, Aug. 5 | 6 p.m. | Moody Amphitheater, 1401 Trinity St., Austin | $26-$317 | See Loggins perform top hits from his decades-long career.

Events calendar here

Click here to have your event featured.

News Notes

Number

$102,500. That’s how much Arch Manning’s special edition trading card sold for at a Panini America auction over the weekend. The one-of-a-kind card set the price record of any name-image-likeness trading card to date. (KXAN)

Open

You can now relive the nostalgia of visiting the movie rental store, because We Luv Video is now open at 100 E. North Loop Blvd. The volunteer-run nonprofit stocks 130,000 DVDs and VHS tapes from now-defunct I Luv Video’s archives. Superfans can support the business with a $10 monthly membership, which comes with exclusive perks. (KUT)

Community

The new Round Rock Library is drawing visitors in record numbers. According to a city report, the library has seen a 30%-40% increase in visitors, issued 11,106 memberships, and lent out more than 643,945 books since January. (Austin American-Statesman)

Outdoors

The new section of the Violet Crown Trail — stretching from Home Depot Boulevard to MoPac, just north of William Cannon Drive — is now open to the public. The South Austin trail now spans from Zilker Park to Slaughter Creek. (KVUE)

Try This

There’s a modern, new Chinese restaurant en route to Austin. Headed by two chefs hailing from New York, Zoé Tong will begin serving its brand of “Austin Chinese” at 1530 Barton Springs Rd. — in the former Austin Eastciders space — this fall. (Eater Austin)

Announced

This year’s Texas Book Fest is going to be lit-erary. Programming will include more than 250 authors, including former Georgia gubernatorial candidate Stacy Abrams and Pulitzer Prize-winning author Lawrence Wright. (The Austin Chronicle)

Asked

What’s your sign? We want to know your zodiac sign and thoughts on astrology for upcoming coverage. Let us know using this survey.

Events

🎉 Shut the fridge door

Inaugural Fridge Fest opens its door in Austin

What began as a humble meme account is now a festival, which owner Dillon Shipper hopes to make an annual event. | Graphic via @dudefridges

What’s in your fridge? Local meme page @dudefridges wants to know.

The local Instagram page curates the funny, shocking, and sometimes pretty gross things people keep in their refrigerators. Anyone around the globe can submit a picture of their own fridge or original meme.

With 31,400 followers and counting, Dillon Shipper — a UT Austin alumnus and the face behind the account — is ready to take his creative outlet to the next level.

Enter Fridge Festival.

Refrigerator lovers and festival fanatics alike can participate in the inaugural festival — which takes place from 8 p.m.-12 a.m. on Saturday, Aug. 19 at Seller’s Underground — for $25 each.

Here’s what you can expect:

An open bar and free food
Live music from D.Carr, Henry Mora, Tiddy, and Goldwall
An exclusive chance to purchase @dudefridge’s first merch drop
Activations from brands like Southside Flying Pizza, Dulce Vida Tequila, and Grillo’s Pickles

We’ll see you there.

Share ATXtoday

Share the good news. Get rewarded.

Have someone who needs to stay in the know? Get amazing rewards for every new subscriber you bring by sharing your unique referral link (below).

Facebook

Twitter

{{profile.vars.rh_totref_5}} friends are looped into all things local because of you.

Claim your rewards

The Wrap

Today’s edition by:
Figi

From the editor

I am very, very far from having a green thumb — seriously, I’m the type of person that can kill succulents — but I’m working on my plant-rearing skills.

It’s been an intensely hot summer, but luckily the Lady Bird Johnson Wildflower Center says it’s normal for plants to wilt in the afternoon. If you see your outdoor plants wilting in the morning, you might want to readjust your watering frequency and schedule.

Missed our previous newsletter?

›

Send Us A Scoop, Question, or Feedback

Content marked with an * is paid advertising. Content marked with an ^ is created by our content studio. The company may also generate commission from affiliate links in the newsletter.

Change your preferences or unsubscribe here.

P.O. Box 2505, Greenville, SC 29602

ADVERTISE | CAREERS | ETHICS | PRIVACY | THE BUY