Those who live deep in the heart of Texas are often fiercely loyal to their home state. It’s a huge space, full of cowboy hats and rodeos, but it’s wrong to assume the state is only one-dimensional.
Texas is full of variety, from the eclectic music scene in Austin to the highly urbanized areas of the bigger cities. With this variety comes the ability to live comfortably in Texas at an assortment of price points. For those with a little more wiggle room, maybe it’s a big city. For those on a budget, maybe it’s more of a country town. Either way, knowing what to expect when it comes to the cost of living in Texas can make it much easier to find that perfect spot.
Texas housing prices
Most places in Texas won’t break the bank when it comes to housing. The majority align closely with the national average, with only a few cities sitting above it. What’s nice is, for every expensive area, there are always a few more affordable places close by. Even if you can’t live in that high-end suburb, the one directly beside it is most likely still developing and has the perfect apartment to rent.
To get a better idea of housing prices across this big old state, check out how rents average out in the cost of living in these Texas towns.
Austin
The capital city of Texas, Austin may have a few affordable apartments lingering within the city limits, but overall, housing is 13.4 percent above the national average. This is due to the appeal of the city itself thanks to a strong music and food scene. There’s also the large student population in town, most of who attend the University of Texas, Austin.
Rental prices are a bit lower here, but not by a lot. In addition, prices are going up in Austin, too. An average one-bedroom apartment has seen a 26 percent price increase, costing $1,697 today. That’s nothing, though, compared to the 42 percent increase two-bedroom apartments are experiencing. Their average rent is $2,079.
The median home price, if you’re looking to buy property in Austin, is currently $680,000. Up 16.2 percent over last year.
Houston
So much more than a city center, what draws many people to Houston are its suburbs. They cater to all types of residents, from families with young children to college students and young professionals.
With all the space, the housing market is less competitive, which could explain why Houston is seeing slighter increases in rent and has an overall housing score that’s 18.5 percent below the national average.
An average one-bedroom apartment will cost you $1,316 per month, an increase of only 12 percent, and a two-bedroom averages in at $1,634, a 16 percent increase. Home prices rose even less over last year. The median home price in Houston is $340,000, an increase of only 13.7 percent.
Plano
Although the most expensive city on this list when it comes to housing, Plano, a suburb of Dallas, is still one of the best places in Texas to call home. Average housing prices here are 22.4 percent above the national average, a significant amount.
That translates into some hefty rents. The average one-bedroom apartment is $1,837 a month, which may feel high, but is 37 percent higher than last year. The average monthly rent for a two-bedroom is $2,250, which is up 25 percent.
Home prices have also seen a large increase, up 23.4 percent over last year. That sets the median home price in Plano at $573,500.
San Antonio
Home to the Alamo, the Riverwalk and Fiesta Texas, San Antonio really captures the amazing culture that is Texas. The Tex-Mex here is amazing, and with housing prices 21.2 percent below the national average, it’s all pretty accessible.
The highest price increases here are in the home buying market. The median housing price in San Antonio is up 21.6 percent but is still at the low end of $304,000.
Rents are also more affordable here, even with price increases over last year. The average one-bedroom apartment is $1,027, up 15 percent, and the average two-bedroom is $1,275 per month, up 16 percent.
Waco
The home of the Baylor Bears and Chip and Joanna Gaines, Waco received a lot more attention these last few years. Although home renovations are big business here, the housing score is 25.1 percent below the national average.
However, the median home price was up 59.4 percent at $247,000, and one-bedroom apartments have jumped by 51 percent over last year at $1,295 per month. Two-bedroom apartments aren’t seeing as big of a bump. Rent here has only increased 20 percent, up to an average monthly cost of $1,341.
Food prices
Texas and food go together very well. The state is well known for its barbecue brisket, Tex-Mex menu and chili. It’s also the home of Dr Pepper, Shiner Bock beer and Blue Bell ice cream. To say that the state takes its food seriously is an understatement.
To that end, the average Texan spends between $266 and $300 per month on groceries. The cost of the specific grocery store items you put on your shopping list determines where a city falls in this range.
All the Texas cities on our list fall below the national average for grocery costs. Here’s how they stack up.
- Waco is 21.6 percent below the national average
- Austin is 12.3 percent below the national average
- San Antonio is 11.7 percent below the national average
- Plano is 6 percent below the national average
- Houston is 3.3 percent below the national average
Given Plano’s high housing costs, it’s surprising Houston beat it out as having the most expensive food prices, but not all Texas cities fall below the national average. Beaumont is right on the level, and El Paso is only 1 percent above.
To see how these averages impact basic grocery items, the average cost of a dozen eggs in Waco is only $3.63, but in Plano, that number jumps to $5.03. Looking at fried chicken (cause you know Texans are eating it), in San Antonio, it’s only 98 cents per serving. In Houston, it’s $1.36.
Price differentials are also easy to see when you compare a date night meal. For a three-course dinner for two, it will cost you $50 in Waco. In Houston, that same meal is 20 percent more, at $62.43.
Utility prices
Utilities consist of three primary items — electricity, water and internet. While some states use natural gas to heat homes, it’s not the norm everywhere. Compared to the national average, utility prices in Texas run hot and cold.
- San Antonio is 12.2 percent below the national average (the cheapest)
- Austin is 7.2 percent below the national average
- Houston is 2.3 percent below the national average
- Waco is 8.4 percent above the national average
- Plano is 13.1 percent above the national average
It’s surprising to see Waco so high when it’s relatively below average on most other pieces that contribute to the cost of living in Texas, but it and Plano are the only two high-priced utility towns. Corpus Christi, along the coast, wins for the highest average, at 16.7 percent above, blowing the cities on our list out of the water. Also worth mentioning, the areas around Plano, which include Dallas and Fort Worth, also exhibit similar percentages above the national average, at 12 and 11 percent respectively.
What may impact so many utility averages is the weather in Texas. Summer temps are hot. The average temperature in Waco in July is 96 degrees Fahrenheit. In Plano, it’s 95 degrees Fahrenheit. There’s no escaping the heat, and while the actual cost of your AC depends on a few factors, including the rate you pay for electricity, Texans need a lot more of it to stay cool all summer long.
Transportation prices
Texas is very much a car-owning state. This is primarily because it’s so huge. Just to drive across it can take days and not hours. For this reason, you may not want to rely on public transportation to get around wherever in Texas you live. Since transportation costs in our select cities are lower than the national average, it’s worthwhile to keep the car parked at home for some trips into town.
- San Antonio is 0.3 percent below the national average
- Plano is 2.5 percent below the national average
- Houston is 9.4 percent below the national average
- Austin is 9.4 percent below the national average
- Waco is 12 percent below the national average
These lower-than-average prices aren’t the same everywhere in Texas, though. Cities like Abilene and San Marcos both exceed the national average by 6.3 percent and 7.2 percent, respectively.
And, while some suburbs, like Plano, rely on limited public transportation options from the closest city, in this case, Dallas’ DART, most bigger cities in Texas do offer some kind of public transportation for those who don’t want to drive everywhere.
In the end, it’s most likely a combination of public transportation and your own car that will get you around, especially given lower walk scores in most spots.
Houston Metro
Although Houston has a walking score of 55, the ability to get around on foot doesn’t extend throughout. Instead, you can take the Houston Metro to get around. Bus fare is $1.25 each way if you’re staying within the local area. Traveling beyond into additional zones has higher costs. Zone 1 has a $2.00 fare, while Zone 7 is $8.00, and there are different prices for all the zones in between.
What’s nice about the Metro is it covers more than just Houston proper. Surrounding areas, including major portions of unincorporated Harris County, are also included in route lines.
Austin CapMetro
A much more walkable city, Austin also has a great transportation system. A walk score of 62, combined with the busses and commuter rail lines of Austin CapMetro makes the city easy to navigate. It also provides a carless option for the nearly 180,000 college students living in and around the city.
Bus routes travel through downtown, but also are available in surrounding neighborhoods, to and from the airport and within the city of Round Rock. There are even University of Texas shuttle routes and a special set of Night Owl routes that run from midnight to 3 a.m. Monday-Saturday.
A single ride on the local service of the CapMetro is $1.25. You can purchase a day pass for $2.50 and a monthly pass for $41.25. For those needing to use the commuter service, a single ride is $3.50, but passes are also available.
VIA in San Antonio
With a walk score of only 38, you might prefer to use your car living in San Antonio. That doesn’t mean, though, that you’re without a public transportation option, The VIA has an extensive list of bus routes that focus on the highly-walkable downtown area and nearby neighborhoods. VIA also has a few express routes that go from downtown throughout San Antonio.
A regular fare is $1.30 and a day pass is $2.75. You also have the option to buy a monthly or semester-long pass for the same price of $38.
Healthcare prices
Another key expense that goes into the cost of living in Texas is healthcare. This includes routine visits and annual exams on top of urgent care appointments and unexpected issues. When compared to the national average, Dallas actually has the highest healthcare costs, at 12.3 percent above. Here’s how our key cities stack up.
- Waco is 6.9 percent below the national average
- Plano is 4.8 percent below the national average
- San Antonio is 1.3 percent below the national average
- Houston is 0.4 percent below the national average
- Austin is 7.5 percent above the national average
To see this in actual numbers, the average doctor visit costs in Austin are 20 percent more than in Waco. These same visits in Dallas are 27 percent more, as well.
Goods and services prices
One of the hardest components of your cost of living in Texas to properly calculate is all the goods and services you use. It’s why a monthly budget can help you keep your finances under control. It’s also why knowing how much ce
rtain things cost throughout Texas can help you narrow down your city search.
Overall, the costs of goods and services, when compared to the national average, sit on both sides of the line.
- Waco and Houston tie at 3.5 percent below the national average
- San Antonio is 2.6 percent below the national average
- Austin is 2.9 percent above the national average
- Plano has the highest number in the state by far at 18.3 percent above the national average
To see these rates in action, here are how they translate to a few key goods and services you might have on your monthly budget.
Although Plano has the highest average costs for goods and services, it doesn’t always top the charts when looking at individual items. For example, it’s the second cheapest city when it comes to dry cleaning and the second cheapest city for haircuts.
Another costly service that may eventually make it onto your budget, if it isn’t there already, is childcare. Paying for a full-day, private pre-school can get expensive, and rates can definitely vary between cities.
In Texas, the average monthly childcare cost is $765 in Waco, while those living in Plano pay an average of $1,133.33. That’s a 32 percent difference.
Taxes in Texas
Throughout the state of Texas, the use tax rate is 6.25 percent, but local taxing jurisdictions, which include cities, can also impose a sales and use tax up to two percent more. This means you could pay a total of 8.25 percent where you live.
Spending $1,000 and just paying the state tax means $62.50 of your receipt goes solely to taxes. Since all the cities on the list take advantage of the maximum increase and charge an 8.25 percent tax, for every $1,000 you spend, you’re really paying $82.50 in taxes.
How much do I need to earn to live in Texas?
The first place to look to answer this question is your rent. You should only spend, according to some experts, 30 percent of your annual salary. That means, to cover the average Texas rent of $1,320 for a one-bedroom apartment, you’d need an annual salary of $52,800.
While earning potential will vary between cities, along with job opportunities, the average Texan can, in fact, afford this rent. The annual mean wage in Texas is $54,230.
These generalized numbers may help you narrow down your decision on whether you can afford to live in Texas, but to get your financial situation just right, take advantage of our special rent calculator.
Living in Texas
With its heavy mix of rural and urban areas, there’s no reason you can’t find an affordable place to live in Texas on any budget. Even if that downtown area seems too pricy, nearby suburbs could offer you both budget-friendly rent and easy access to all the amenities you want. So, if Texas is the place you like, it’s time to start your search.
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The Cost of Living Index comes from coli.org.
The rent information included in this summary is based on a calculation of multifamily rental property inventory on Rent. as of June 2022.
Rent prices are for illustrative purposes only. This information does not constitute a pricing guarantee or financial advice related to the rental market.
Source: rent.com