Last updated March 15, 2022
Rinas Bullatovci
Average Cost of Living in Texas
If you’re searching for a city with affordable middle-income homes, solid job opportunities and access to big-city cultural experiences, you may want to put Texas on your list of potential destinations. The cost of living in Texas is just slightly less than the national average. Keep on reading to learn how affordable is to live in Texas.
Key Takeaways: March 2023 Data
✓ In comparison to the national average, Texas's overall cost of living is 5.8% lower. (Bestplaces)
✓ Texas ranks as the 15th state with the lowest cost of living in the country, with an average monthly cost of living of $39,661.
✓ House prices are 15% below the national average.
✓ For 2023, the living wage for a single person in Texas is $14.01 per hour. (Massachusetts Institute of Technology’s Living Wage Calculator)
✓ As of March 2023, the median home sale price in Texas had risen to $390,600, representing an increase of approximately 19%. (Onemainfinancial)
✓ In the first months of 2023, the median sales price of homes in Texas rose by 18.6 percent compared to the same period in the previous year, bringing the price to approximately $325,000.(Bankrate)
✓ As of March 2023, sales for homes under $300K had dropped by approximately 30%, whereas sales for homes ranging between $400K and $500K had increased by 15%. (Norada)
✓ In March 2023 Texans paid an average monthly electricity bill of $181, translating to an annual cost of approximately $2,172. This amount is 12% higher than the national average. (Bankrate)
Section 01
Average Cost of Renting in Texas
Section 02
Average Cost of Owning a House
Section 03
Average Cost of Transportation
Section 04
Average Cost of Food and Groceries
Section 05
Average Cost of Utilities
Section 06
Average Cost of Healthcare& Taxes
Section
01
Average Cost of Renting in Texas
Texas is a great choice for anyone who is looking to purchase or rent a property at an affordable price, as the costs are roughly 15 percent cheaper than the national average. This section provides you with all the information you need about the cost of renting in Texas.
On average, a studio apartment in the state would cost you around $867 per month, which is lower than the national average of $949.
In Texas, the average cost for a one-bedroom apartment is approximately $953, which is cheaper than the national average of $1,048.
The median cost of a monthly mortgage is $1,244.
The median cost for a two-bedroom is $1,083.
The median rent for a three-bedroom property is $1,268.
The median rent for a four-bedroom property is $1,641.
The median gross rent is $1,091.
Although the average apartment only costs $1,045 per month, it all depends on where you choose to live.
It is possible to find better deals in smaller towns and cities.
For instance, in Waco, the median rent price is as low as $862 per month.
However, in a city like Austin, the rent could go up to $1,280 per month or even higher.
The median monthly rent for a two-bedroom apartment is almost 4% lower than the national median, which is nearly $1,300.
Dallas has a cost of living that is 4% higher than the national average, whereas Houston's housing costs are 1% lower.
At present, the cost of a one-bedroom apartment in Houston is $1,319 per month.
Currently, the cost of a one-bedroom apartment in Dallas is $1,426 per month.
At present, the cost of a one-bedroom apartment in Austin is $1,600 per month.
Section
02
Average Cost of Owning a House
Compared to the rest of the country, the cost of housing in Texas is 15% lower. This section contains information on the expenses associated with buying a house in Texas.
Between January and November of 2022, there was a 30% decrease in the total sales of homes priced under $300K, while the sales of homes priced between $400K and $500K increased by 15%.
The median home price in Texas is still decreasing, with a month-over-month decline of 1 percent in the seasonally adjusted median price.
The four largest metropolitan areas experienced different changes on a monthly basis. Although the median price of homes in the state has decreased in the last six months, it is still 6.1% higher than it was one year ago.
Dallas experienced the highest growth rate at 9.6%, while Austin's growth rate decreased to 0.1%.
The median sale price for homes in Texas was $390,600 as of May 2022.
This is up around 19% from the previous year.
Despite housing prices rising at a faster rate than the rest of the country, Texans still spend around 15% less than the national average on housing overall.
There is a wide variation in prices across regions, with metropolitan areas having significantly higher prices.
Compared to other states, there is limited housing available for very low-income individuals in Texas.
The typical home value in Texas was $267,523 as of October 2021.
In highly sought-after area such as Austin or Frisco, you may need to spend over $400,000.
The cost of living in Texas varies widely, ranging from 43% lower than the national average in the southern city of Harlingen to 27% higher in Plano, located north of Dallas.
The majority of homes in Texas, around 63.5%, are priced at $261,161 or less.
The median home value in Dallas rises to $221,424.
In Austin the median home value sits at $480,897.
Texas home prices are on a steady rise, much like the rest of the nation.
In December 2022, Texas home prices had increased by 2.9% compared to the previous year.
The year-over-year average for the number of homes sold decreased by 31.4%.
In December of the current year, there were a total of 20,265 homes that were sold.
The number of homes sold in December this year was lower than in December last year, with only 20,265 homes sold compared to 33,010.
Section
03
Average Cost of Transportation
Transportation expenses in Texas are 7% lower than the national average. Although public transportation in the state, with the exception of Dallas and Austin, is not well-coordinated, the majority of Texans possess their own vehicles. The cost of owning a car in Texas is not exorbitant, but it is not particularly economical either. We have compiled all relevant transportation information in this section regarding Texas.
Capital Metro in Austin offers a monthly pass for $33 which is valid for 31 days.
A ride on The DART bus system can be purchased for $2.50 per ticket.
To use Denton County Transportation Authority, you can buy a monthly ticket for $45.
Houston Metro offers tickets that begin at $1.60 for each ride.
The average cost of gasoline per gallon in the state is approximately $4.368.
This is a bit lower than the national average of $4.779.
The expense of automobile insurance in Texas differs based on various factors, such as your driving record, credit history, marital status, gender, and age.
The mean yearly cost of automobile insurance in Texas is roughly $1,810.
This is 26.8% more than the national average.
Transportation expenses in Texas vary depending on the location, with costs in the northern city of Amarillo being 22% lower than the national average.
In San Marcos, a city situated south of Austin, transportation costs are approximately 1% higher than the national average.
Among most Texas cities, San Antonio falls in the middle range for transportation costs, with expenses approximately 7% lower than the national average.
Based on MIT's living wage calculator, an individual without children spends approximately $5,509 per year on transportation in Texas.
If an individual has one child, their yearly transportation expenses can rise to $9,776, while someone with two children can anticipate spending $12,709 each year on related costs, according to MIT's living wage calculator.
Taking all factors into account, the cost of utilizing and upkeeping your car is estimated to be approximately $3,181 annually.
When it comes to purchasing a secondhand vehicle, El Paso ranks as the sixth most expensive place in the nation, with used cars being 8% pricier than the national average.
Section
04
Average Cost of Food and Groceries
Discover details about food and grocery costs in Texas in this section. Keep reading for more information.
The cost of groceries in Waco, Texas is 21% lower than the national average.
It is 3% higher in El Paso.
For a little over $5, it's possible to buy a half gallon of milk and some cereal in San Antonio.
This is 16% less than the national average.
The yearly average expenditure on groceries is approximately $3,177.
This amounts to about $264 per month.
Nevertheless, bigger households may incur expenses nearer to $9,305 annually.
In other words, $775 per month.
In Houston, Texas' business district, a basic lunchtime menu that includes a drink costs $17.
For about $9, one can enjoy a combo meal at a fast-food restaurant like a Big Mac Meal in Houston, Texas.
500 grams (1 lb.) of boneless chicken breast in Houston, Texas costs $4.32.
1 liter (1 qt.) of whole-fat milk in Houston, Texas costs $0.93.
12 large eggs cost $4.28.
Additionally, 1 kilogram (2 lb.) of tomatoes in Houston, Texas costs $3.11, and bread for two people for one day costs $2.71.
Section
05
Average Cost of Utilities
Living in Texas does not result in cost savings for utility bills, unlike in other areas. Continue reading to find out more.
EnergySage's data from September 2022 reveals that the mean monthly electricity bill in Texas amounts to $181.
This amounts to about $2,172 annually.
The figure is considerably higher than the national average, with a difference of 12 percent.
In Texas, the expenses for utilities such as energy and phone usage can vary significantly, with Texarkana in the east having a cost that is 12% lower than the national average.
This is 30% higher in Corpus Christi on the Gulf of Mexico!
The Sherman-Denison region has utility costs that fall within the moderate range for Texas cities, being 5% higher than the national average.
The monthly cost for utilities in Dallas is $157.09.
The monthly cost for utilities in Houston is $148.15 per month.
Utilities in Austin cost $145.71 per month.
Utility expenses in Texas are slightly higher than the national average, about 2%, and vary depending on the region.
For instance, the El Paso area's utility expenses are approximately 10% lower than the national average.
In Corpus Christi is 16% above.
Considering electricity, water, and natural gas as components of total utility expenses, the mean monthly bill in Texas amounts to around $295.00.
The electricity bill is $145.
The natural gas bill is $110.
The water bill is $40.
Section
06
Average Cost of Healthcare and Taxes
In this section you will find all the information you need for the cost of healthcare and taxes in Texas.
In Texas, the average cost of health care per month in 2022 is about $424. slightly lower than the national average of $438.
This is slightly lower than the national average of $438.
However, the cost of basic health care insurance varies depending on factors such as policy choice, family size, and household income, with an average cost of $509 per month.
Each Texan spends an average of $5,793 per year on health care, according to the 2020 Bureau of Economic Analysis Personal Consumption Expenditures by State report.
The breakdown shows that $1,957 is spent on procedures.
$1,196 is spent on prescriptions.
$1,205 is spent on inpatient care, and $1,752 is spent on outpatient care.
Property taxes are steeper in Texas than in most states, with a rate of 1.6 percent.
This makes it the sixth most expensive in the country, according to the Tax Foundation.
Texas has a statewide sales tax of 6.25%, but localities can add their own tax on top.
This results in a total sales tax rate of up to 8.25% in some areas.
Texas is also one of eight states without an income tax and has no estate tax, making it an attractive place to retire.