Cost of Living in Texas (2024) | Wan Bridge

Cost of Living in Texas

cost of living in texas

Texas has a reputation for being big, bold, and beautiful – so it’s no wonder that so many people are making the move to the Lone Star State. Texas has plenty to offer, from its Southern-style charm to its fabulous food, music, and entertainment. As a future Texan, you may wonder if everything is bigger in Texas, does that mean that the cost of living in Texas is higher, too? 

Texas has a reputation as one of the most affordable places to live in the United States, and with a cost of living about 8% lower than the national average, it becomes obvious why so many are moving to the Lone Star State.

We’ve put together the ultimate guide, detailing how much you can expect to pay for necessities and luxuries in Texas. You’ll find information about the cost of housing in Texas, utilities, food, and more, making it easier to plan for a potential move. 

What’s the Average Cost of Living in Texas?

Is it expensive to live in Texas? Well, you might assume that all of the advantages of living in Texas come at a hefty price. But actually, life here can be surprisingly affordable. 

The Texas cost of living is about 7% less than the national average.

Keep in mind that Texas is one of the largest states in the nation, so you’ll find a wide range of living costs that vary from city to city. Some Texas cities are around 10% more expensive than the national average, but others are more than 20% less expensive. 

What does this mean for you? Ultimately, you have a good chance of finding a place that you can comfortably – and affordably – in Texas. 

What does the cost of living include?

To calculate the cost of living, analyze several different categories of expenses, then average them. The United States is set at 100, so each category has an associated number representing how much higher or lower the category is compared to the national average. 

For example, if the housing category is measured at 95, it is 5% less expensive than the average housing cost in the US. But if the category measures 105, it is 5% more expensive than the average. 

There are seven expense categories:

  • Housing
  • Utilities
  • Groceries
  • Transportation
  • Healthcare
  • Taxes
  • Miscellaneous goods and services

 

With this information in mind, how much does it cost to live in Texas? Here’s how the state stacks up against the averages.

Cost of Living

  • Total cost of living 
    • Texas: 92.6 
    • US: 100
  • Housing
    • Texas: 84.4 
    • US: 100
  • Utilities
    • Texas: 103.3
    • US: 100
  • Groceries
    • Texas: 90.8
    • US: 100
  • Transportation
    • Texas: 92
    • US: 100
  • Healthcare
    • Texas: 94.8
    • US: 100
  • Miscellaneous
    • Texas: 96.7
    • US: 100

 

As state and national economies shift, these numbers can change. However, it’s definitely a smart way to get a good start on budgeting.

Now, we’ll break down each of these expense categories in greater detail. 

Housing Costs in Texas

One of Texas’s biggest perks is the relatively inexpensive housing. Both home buyers and renters can benefit from the wide range of price points, which tend to be lower than what you’d find in many other US states.

The cost of housing in Texas is almost 16% lower than the national average – which is a major draw for prospective residents.

Whereas the median home price in the US is over $291,000, Texas comes in with a median cost of $243,600. 

In terms of average rent in Texas, the figures are even more impressive:

  • Studio apartment
    • Texas: $867
    • US: $949
  • One-bedroom apartment:
    • Texas: $953
    • US: $1048
  • Two-bedroom apartment:
    • Texas: $1146
    • US: $1278
  • Three-bedroom apartment:
    • Texas: $1501
    • US: $1681
  • Four-bedroom apartment:
    • Texas: $1856
    • US: $1950

 

And when you compare the cost of housing in Houston and other major Texas cities like Austin and Dallas to other metropolitan areas, you’ll see how much you could save. 

For example, the cost of housing in Dallas (one of the most desirable cities in the nation) is about 13% lower than the national average. But when you look at cities like San Francisco (almost 500% more expensive), New York City (nearly 200% more expensive), or even Scottsdale (203% more expensive), the difference is staggering.

Utilities

Your utility bills include basic services like electricity, water, sewer and trash, and internet. Overall, the cost of utilities in Texas is slightly higher than the national average. However, there are significant differences between various parts of the state.

For example, in Texarkana, utilities cost about 12% less than the US average. Over in Corpus Christi, you’ll pay about 30% more.

One thing to realize about utility expenses is that they are based on many factors, like your household size, habits, specific needs (like heating a pool), and more. So, you can almost always find ways to cut down on utility costs if needed. 

In most Texas cities, prepare to pay higher electricity costs during the hot summers – running your AC is a must! But those same bills will usually drop in the winter, even if you’re using the heat.

Groceries

The cost of groceries in Texas tends to be lower than in many other states, with most of the state’s cities making it pretty easy to fill up your cart while sticking to a budget. 

Statistics show that a single person living in Texas spends about $280 per month on groceries. For a family of four, weekly groceries total around $200. 

Of course, Texas is famous for its foodie scene, so you’ll probably want to enjoy dining out for more than a few meals. Many Texas cities have a lively restaurant scene, with options that range from food trucks to fine dining. With such a great balance of price points, you can eat out for under $11 per meal

Transportation

With the exception of the larger cities in Texas, most areas’ residents rely heavily on their cars to get around. Transportation costs are generally on par with the national average, though they can be considerably lower in some cities. 

Here’s the very good news: Texas ranks #2 in the 10 least expensive states for gas. So, filling up your tank won’t break the bank.

If you prefer public transit, there are some options you can put to good use. Several downtown areas are served by major bus lines, and there are always rideshare programs like Uber and Lyft. Depending on where you live, you could even walk to bike to work.

Healthcare

Healthcare in Texas is a little more expensive than the average, but not dramatically. However, you’ll have a myriad of choices when it comes to providers, so you definitely aren’t going to be limited. 

The state of Texas also has a high concentration of elite medical centers and research hospitals. So, whether you’re making an appointment for a routine check-up or you need specialized care, it shouldn’t be hard to find.

Taxes

In Texas, you won’t be paying a state income tax. That means more money in your pocket, which is always good news. Texas ranks as the 7th most affordable for state and local taxes compared to other US states.

Sales tax in Texas is 6.25%, with most cities adding about 2%. So, you’ll typically spend about 8.25% in tax when shopping in Texas. 

There are a handful of sales tax holidays in Texas, which are specific days where you won’t have to pay any sales tax. These days are the perfect time to make large purchases, such as vehicles, electronics, or appliances, because you can save hundreds or thousands of dollars. 

Miscellaneous Goods and Services

This expense category includes a variety of goods and services, including entertainment, clothing, personal care, and activities. On average, you’ll save about 4% in Texas. In some cities, these costs are over 20% lower than the nationwide average. 

How Much Money Do You Need to Live Comfortably in Texas?

According to the US Census, the median household income in Texas is $63,826. That median doesn’t mean you have to make that much to live anywhere in the state; it’s just the average. 

If you want to know how much you need to make to live in Texas, you’re going to need to consider a few things:

  • Where you’re living (what city)
  • Your spending habits
  • Your needs/preferences for housing, transportation, etc.
  • Your household size
  • Whether you are the only earner or are part of a dual-earner household

 

The MIT Living Wage Calculator states that a single person in Texas needs to make about $34,000 before taxes to live comfortably. Understandably, families with children need a higher income amount to match their increased expenses. If you are a single parent with two children, the calculator estimates the living wage at $74,355.

What City Has the Lowest Cost of Living in Texas?

The cost of living index is based on data collected from the Bureau of Labor Statistics, Consumer Price Index, and Census Bureau. This report ranks the 10 largest metropolitan areas in Texas according to the lowest average overall costs of goods and services.

The fourth largest city in Texas, Houston, ranked on this list, which is surprising compared to other states’ large cities. With an average rent cost of $1,041, and home prices averaging $204,810, Houston is quickly becoming a center for other Texans looking for lower living costs.

Cost of Living: Texas vs. California

In case you’re wondering how much life costs in different states, we’ve got some numbers for you. We compared the cost of living in San Francisco, CA, versus Austin, TX, based on the following categories: housing, utilities, groceries, transportation, health care, taxes, and miscellaneous.

The total cost of living in Texas was found to be 46% cheaper overall than the cost of living in the Golden State. You’ll potentially save $1,341.00 annually just by moving to Texas, depending on your income; see the cost difference breakdown below:

  • Texas Housing Cost Difference: 67% less than California
  • Texas Utility Cost Difference: 29% less than California
  • Texas Groceries Cost Difference: 29% less than California
  • Texas Transportation Cost Difference: 41% less than California
  • Texas Healthcare Cost Difference: 14% less than California
  • Texas Miscellaneous Goods & Services Cost Difference: 17% less than California

 

Ready to Move to Texas?

Here in Texas, the opportunities are just as big as you would hope for – and for so many people, it is an incredible place to live. There are quiet rural communities where cowboys and cowgirls still reign supreme and cosmopolitan cities with designer boutiques and five-star restaurants around every corner. In the Lone Star State, variety truly is the spice of life.

Looking for a New Home to Rent in Texas?

With an unparalleled variety of homes for rent in Houston, Dallas, and Austin, Wan Bridge offers a variety of great places to live in Texas. 

Our built-to-rent communities are uniquely designed for the wants and needs of tenants, providing advantages that no other rental options can. From Palm Bay, Galveston, and Georgetown Heights to Lakeside Conroe and Brooklyn Village, Wan Bridge communities represent the future of fine living.

Luxury residences, ample amenities, and professionally-managed maintenance and landscaping allow you to enjoy a relaxed, upscale lifestyle without the hassle of home ownership. Whether you envision yourself in a beachside town or just minutes from the big city, there’s a Wan Bridge community for you.

Contact our team today to get more information about our Texas homes for rent!


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