When deciding where to live in Allen, one of the biggest choices is whether to rent an apartment or buy a house. The cost differences between the two can be significant, from the monthly rent or mortgage payment to utilities, maintenance, and other expenses. Let’s break down the typical costs of apartments versus houses in Allen to help you make an informed decision.
Renting vs. Owning in Allen: What You’ll Pay
In general, renting an apartment in Allen is more affordable on a monthly basis than owning a house, but the specific costs depend on factors like size, location, and amenities. Renting a 2-bedroom apartment in Allen typically costs around $1,800 per month, while a 3-bedroom house may cost closer to $2,450 per month. The average rent for a 3-bedroom house in Allen is $2,450 per month.
However, these are just averages. The cost of renting a 3-bedroom house in Allen has increased by about 6% over the last year, with more affordable options available in neighborhoods like Twin Creeks. Newer homes in desirable areas like Watters Creek may command even higher rents.
For homebuyers, single-family houses are the most popular home type in Allen, with 74% of new buyers choosing detached homes. The median sale price for a house in Allen is around $500,000, which translates to a monthly mortgage payment of roughly $2,900 (assuming a 30-year fixed loan with 20% down). Of course, this doesn’t include additional costs like property taxes, insurance, and maintenance.
Table: Cost Comparison – Apartment vs House
Here’s a side-by-side breakdown of common monthly costs in Allen:
| Expense | 2BR Apartment | 3BR House |
|---|---|---|
| Rent/Mortgage | $1,800 | $2,900 |
| Utilities | $150 | $250 |
| Internet | $60 | $80 |
| Insurance | $15 (renters) | $150 (homeowners) |
| Maintenance | $0 | $200 |
| HOA | $0 | $50 |
| Total | $2,025 | $3,630 |
Estimates are for mid-range units with typical usage.
Utility and Upkeep Differences
In addition to the base rent or mortgage, there are other cost differences to consider between apartments and houses:
- Water/Sewer: Often included in apartment rent, but separate for houses (about $60/month).
- Electricity: Houses use more power and have higher bills, especially with larger AC systems. Expect $150/month for an apartment and $250/month for a house.
- Gas: Apartments may use gas for heating and cooking, adding $30/month. Houses with gas can see $80/month bills.
- Trash: Typically included for apartments, but $20-25/month extra for houses.
- Maintenance: Apartments handle most repairs and upkeep, while homeowners spend an average of 1-2% of their home’s value each year ($200/month for a $500K house).
The age and efficiency of appliances, HVAC systems, and fixtures also impact utility costs. Newer, energy-efficient houses may have lower bills than older or poorly maintained apartments.
Lifestyle Tradeoffs
Of course, the decision between an apartment or house in Allen isn’t just about money. There are key lifestyle factors to consider:
- Space: Houses offer more square footage and storage, plus yard space. Apartments are generally smaller but require less cleaning and upkeep.
- Location: Apartments are often centrally located near dining, shopping, and transit. Houses are typically in quieter residential areas but may mean longer commutes.
- Amenities: Many newer apartments in Allen include perks like gyms, pools, and business centers. Houses provide more privacy and freedom to customize the space.
- Pets: Houses make pet ownership easy with private yards. Many apartments allow pets but may have breed/size restrictions and charge monthly pet rent ($25-50) or one-time deposits ($250-500).
Many Allen residents choose apartments for the convenience and lower monthly costs, especially young professionals. Families often prefer houses for the extra bedrooms, yard, and long-term stability. Some may prefer an apartment close to downtown Allen and the DART rail, while others want a spacious house near top-rated schools like Lovejoy ISD.
Which Is Cheaper Long Term in Allen?
While renting an apartment is cheaper on a monthly basis, owning a home in Allen can be more economical over the long haul. Let’s compare the 5-year cost of renting a 2-bedroom apartment versus owning an entry-level 3-bedroom house:
- Renting (2BR Apartment): $121,500 total ($2,025/month for 60 months)
- Owning (3BR House): $217,800 total (includes mortgage, property taxes, insurance, and maintenance)
After 5 years, the homeowner has paid about $96,000 more than the renter. However, they’ve also built roughly $75,000 in equity (assuming 3% annual appreciation). So the “real” cost difference is closer to $21,000, or $350/month. Owning also provides tax benefits and more control over the property.
In cities like Allen with strong job growth and rising rents, buying a home can make financial sense, especially if you plan to stay put for several years. But renting provides more flexibility to relocate for work or personal reasons.
FAQs About Housing Costs in Allen
How much more does a house cost per month in Allen?
On average, houses in Allen cost about $1,600 more per month than apartments when you factor in the mortgage payment, taxes, insurance, maintenance, and utilities. But the exact difference depends on the size, age, and location of the home.
Do houses always have higher utility bills than apartments?
Not necessarily. Newer, energy-efficient houses can have lower utility costs than older, drafty apartments. But in general, houses have higher utility bills because they are larger and often have more appliances and systems to power, heat, and cool.
Are apartments still cheaper than houses even with pet fees?
In most cases, yes. While many Allen apartments charge pet rent or one-time pet deposits, the monthly cost is still typically lower than the added expenses of owning a house, like maintenance and repairs. But if you have a large dog or multiple pets, a house with a yard may provide better value.
Making the Right Housing Choice in Allen
Ultimately, the decision to rent an apartment or buy a house in Allen depends on your unique budget, lifestyle, and long-term goals. Apartments offer affordability and convenience, with monthly costs around $1,600 lower than houses. But houses provide more space, stability, and wealth-building potential, which can pay off if you plan to stay in the area for 5+ years.
Whichever option you choose, make sure to consider the full picture of monthly expenses, not just the base rent or mortgage payment. Factor in utilities, insurance, maintenance, and any HOA or pet fees to get an accurate sense of what you’ll pay each month. And don’t forget to budget for upfront costs like security deposits, down payments, and moving expenses.
For more tips on budgeting for your Allen apartment or house, check out our guide on How Much It Costs to Live in Allen Each Month. And if you’re leaning towards buying, read up on 2025 Property Taxes and HOA Costs in Allen to prepare for those added expenses.