Should You Rent or Buy in Plano?

Renting vs. Owning in Plano: What You’ll Pay

When deciding between an apartment or house in Plano, the cost of living is a key factor. The average rent for a 2-bedroom apartment in Plano is around $1,800 per month, while a 3-bedroom single-family home averages $2,450 monthly. The typical rent for a 3BR house in Plano is $2,450/month, nearly $650 more than a comparable apartment.

Of course, with homeownership comes additional costs like property taxes, insurance, and maintenance that can add hundreds more to the monthly bottom line. Renters have more predictable expenses but sacrifice the long-term equity and tax benefits of owning. Ultimately, your budget and financial goals will guide the decision.

Table: Cost Comparison – Apartment vs House

Here’s a side-by-side breakdown of common monthly costs in Plano:

Estimates are for mid-range units with typical usage

Utility and Upkeep Differences

In addition to higher base rent, houses in Plano tend to have greater utility costs. Larger floor plans mean more space to heat and cool, leading to higher electricity and gas bills. Watering a lawn and maintaining a pool, common in Plano, also increase water charges compared to an apartment.

Some other cost differences to consider:

• Apartments often include water, trash, and sometimes even internet in the rent
• Houses have higher energy costs for heating/cooling larger square footage
• Older houses may have poorer insulation and less efficient HVAC systems
• Lawn care, pest control, and other maintenance add $100+ per month for houses

Lifestyle Tradeoffs

Aside from hard costs, there are quality of life factors to weigh with Plano apartments and houses. Apartments offer greater flexibility, mobility, and convenience – many are located in walkable areas near shops and restaurants. They also come with fewer maintenance hassles and shorter commutes.

Houses, on the other hand, provide more privacy, space, and control over the property. They’re better suited for families who want a yard, pets, and room to spread out. Many Plano residents choose apartments for walkability and simplicity, while families prefer houses for outdoor space and room to grow.

Which Is Cheaper Long Term in Plano?

While renting is cheaper month-to-month, owning can be more cost-effective long term. Let’s compare total costs over 5 years for a typical Plano apartment vs house:

• Apartment: $122,700 (rent + 5% annual increases)
• House: $182,700 (mortgage + taxes + insurance + 3% annual maintenance and repair costs)

The house costs $60,000 more over 5 years. However, assuming 3% annual appreciation, the house would accrue over $80,000 in equity in that time. The homeowner also saves on taxes with the mortgage interest deduction. For stays longer than 5-7 years, owning usually comes out ahead financially.

FAQs About Housing Costs in Plano

How much more does a house cost per month?
In Plano, a house costs about $1,000 more per month than an apartment when accounting for rent/mortgage, taxes, insurance, maintenance, and utilities.

Do houses come with higher utility bills?
Yes, houses in Plano typically have higher utility costs due to more space, lawn watering, pools, and less efficient systems. Expect to pay $50-$100 more per month compared to an apartment.

Are apartments cheaper even with pet fees?
Yes, even with a pet fee or rent surcharge, apartments are usually cheaper than houses when including all expenses. A pet fee adds $20-$50 per month but houses still cost hundreds more in rent and upkeep alone. See our guide to monthly budgets for Plano residents.

Making the Right Housing Choice in Plano

So is it better to rent or buy in Plano? While renting is cheaper in the short term, buying can be smarter long term. Houses cost about $1,000 more per month, but that gap can be offset by equity gains and tax savings if you plan to stay over 5 years.

Lifestyle also plays a role. Apartments offer greater flexibility and convenience, while houses provide more space and control. Be sure to factor in the full cost of ownership, including property taxes and HOA fees. The right choice depends on your financial picture and future plans.