The Housing Market in Plano Today

Plano, Texas is a thriving suburb of Dallas known for its strong economy, excellent schools, and high quality of life. In recent years, the city’s housing market has been characterized by steady growth and rising prices. Inventory has tightened as more people move to the area for jobs in tech, healthcare, and other industries. New housing developments are rising downtown and in other popular neighborhoods to meet the increasing demand.

Despite the competitive market, Plano remains relatively affordable compared to other major metros. The city offers a range of housing options from apartments to single-family homes to fit various budgets and lifestyles. However, costs are trending upward as Plano continues to attract new residents and businesses.

Renting in Plano: What’s Typical?

For those considering renting an apartment in Plano, prices vary based on location, size, and amenities. As of 2023, the average rent for a one-bedroom apartment in Plano is around $1,400 per month. A two-bedroom unit typically costs about $1,800 monthly. Newer luxury complexes in desirable areas like Legacy West may command even higher rents.

Rental inventory in Plano is relatively tight, with a vacancy rate of just 5%. Popular areas for renters include downtown, where many young professionals prefer to live close to dining and entertainment options. Apartments near major employers like Toyota, JPMorgan Chase, and Capital One are also in high demand. Families often choose to rent in neighborhoods zoned for top-rated Plano ISD schools.

While rent prices have risen steadily in recent years, Plano remains more affordable than nearby cities like Frisco or Dallas proper. Renters can find ways to save by looking for older units, living further from the city center, or sharing costs with roommates. Many apartment complexes in Plano include amenities like trash service, fitness centers, and swimming pools that add value.

Owning a Home in Plano

For those looking to buy a house in Plano, the median home price currently stands at $450,000. With a 10% down payment and a 30-year fixed mortgage at 6.5% interest, the estimated monthly payment would be around $2,850. However, this does not include additional costs of homeownership like property taxes, insurance, maintenance, and any HOA dues.

Property taxes in Plano are relatively high compared to the national average. The typical homeowner pays about $7,500 per year, or over $600 per month. Homeowners insurance adds another $100-200 to the monthly bill. Many neighborhoods also have mandatory HOA fees to maintain common areas and amenities. These can range from $30 to $100+ per month.

While owning a home in Plano comes with significant costs, it also offers the potential for long-term financial gains. Historically, home values in the city have appreciated at a steady rate. Plus, mortgage payments contribute to building equity instead of going to a landlord. Homeowners may also benefit from tax deductions and more control over their living space.

Renters vs. Homeowners: Who Lives Where?

Plano has a homeownership rate of around 60%, meaning a slight majority of residents own their homes. However, the renter population has grown in recent years, especially among younger adults. Many choose to rent for the flexibility, predictable costs, and access to amenities.

Young professionals, especially those under 35, are more likely to rent apartments close to work or entertainment districts. They prioritize location and convenience over square footage. Families, on the other hand, often prefer to own single-family homes in quieter residential areas with good schools. Retirees are mixed, with some downsizing to low-maintenance apartments or 55+ communities and others aging in place.

The decision to rent or buy in Plano often comes down to financial factors. Saving up for a down payment, qualifying for a mortgage, and affording ongoing ownership costs can be significant barriers. High student debt, limited credit history, or variable income may keep some in the rental market longer. There are also cultural factors, with some groups more likely to prioritize or inherit homeownership.

Table: Typical Monthly Housing Costs in Plano

Here’s what housing costs might look like each month in Plano:

Cost	1BR Apartment	2BR Apartment	Median Home
Rent/Mortgage	$1,400	$1,800	$2,850
Property Tax	–	–	$625
Insurance	$15	$20	$150
Utilities	$100	$150	$250
HOA	–	–	$50
Total	$1,515	$1,970	$3,925

Estimates reflect mid-range properties and average usage.

What’s Driving Costs Up or Down?

Several factors influence the cost of housing in Plano. On the demand side, the city’s strong job market and acclaimed schools continue to attract new residents. Toyota, Liberty Mutual, JPMorgan Chase, and other corporate employers have recently expanded or relocated to the area, bringing an influx of workers. Plano’s high median household income of $96,000 also allows more people to afford rising costs.

In terms of supply, Plano is somewhat landlocked, with limited undeveloped land for new housing. Zoning restrictions in established neighborhoods prevent significant density increases. New apartments and mixed-use projects are concentrated downtown and along transit corridors. Some older apartment complexes have been renovated, driving up rents. Newer master-planned developments on the city’s fringes offer more single-family inventory but at higher price points.

Construction costs are another factor, with labor shortages and supply chain issues increasing the price of building materials. Inflationary pressures and rising interest rates have made mortgages more expensive in recent months. Climate considerations like higher summer temperatures and storm risk can influence insurance premiums and utility bills. However, Plano’s housing market remains more affordable than many coastal metros.

FAQs About Housing in Plano

• Is Plano affordable to live in? While housing costs in Plano are higher than the national median, the city is relatively affordable compared to other major metros. Plano’s high median income helps offset costs, and there are housing options for a range of budgets.
• Why are housing prices changing? Plano’s housing prices have risen due to steady population growth, a strong job market, and limited housing supply. Inflationary pressures and rising mortgage rates have also increased costs for homebuyers.
• How does Plano compare to nearby cities? Plano is generally more affordable than neighboring cities like Frisco or Dallas, but pricier than outer-ring suburbs. Plano offers a balance of urban amenities, strong schools, and relatively reasonable housing costs.

Making Smart Housing Decisions in Plano

When deciding whether to rent or buy a home in Plano, it’s important to consider your unique financial situation and housing needs. Renting offers more flexibility and predictable costs, but homeownership can provide long-term financial benefits. Compare the all-in monthly costs of each option, including rent/mortgage, insurance, taxes, and maintenance.

Location is another key factor, especially for commuters or families with school-age children. Consider the tradeoffs between housing costs, square footage, and proximity to work or amenities. Traffic and transportation costs can add up quickly in sprawling metros like DFW.

Whether you choose to rent or buy, be sure to budget for the true cost of housing, including utilities, repairs, and any HOA or extra fees. Plan to spend no more than 30% of your income on housing costs. If you’re looking to buy a home, save up for a down payment, improve your credit score, and shop around for the best mortgage rates. Consult with a local real estate agent who understands Plano’s unique market conditions.

For more information on budgeting for housing costs, see our guide on Monthly Budget Examples for Plano Residents. You can also read an overview of the Cost of Living in Plano (2025 Guide) to understand how housing fits into the bigger picture.