Texas Cost of Living

Overview of Texas Cost of Living

Texas is mostly more affordable due to its housing costs, with an Index of 81.3. Utilities are the only aspect of life that is more expensive than the national average, with a COLI of 107.3. [1]

The median household income is $79,060 [2]. For a family with one child, the living wage is $73,609, or $35.39 per hour for a single adult [3], or $41,142 for each adult in a household with two working adults ($19.78 per hour) [3].

While this is not ideal, and families with more children have higher expenses, Texas is still easier on the budget than many other states, making it an appealing choice. 

Regional Variations Within Texas

While it’s easier to live comfortably in Texas than in the majority of the country, living expenses vary significantly depending on the city and region.

Unsurprisingly, Austin is the most expensive city, especially because of its rent, which is $1,703 and closer to the U.S. average of $1,739. The Dallas-Fort Worth metro is more moderate, while small cities and rural areas have some of the lowest rents. [4]

Key Components of Cost of Living in Texas

Housing, transportation, utilities, and groceries make up the majority of spending in the average Texan home. Here is how the state fares in each category. 

Housing (Buying vs. Renting)

The average home in the Lone Star State costs $340,000 [4], compared to 83% of the U.S. average of $404,000 [5]. This comparison makes housing costs much easier to bear.

According to Texas Realtor Quarterly reports [6], in Q3 2024, this is how average home prices varied by region:

• $437,925 in Austin-Round Rock-San Marcos MSA
• $281,000 in Corpus Christi MSA
• $396,870 in Dallas-Fort Worth-Arlington MSA
• $265,000 in El Paso MSA
• $340,000 in Houston-Pasadena-The Woodlands MSA

The average rent in Texas is $1,253 per month [7], with McGregor being the cheapest and Dilley the most expensive area. Owner-occupied units make up 62.4% of housing. [8]

Prices in Texas have been stagnating or slightly dropping compared to the previous year [6] as inventory improved, especially in areas like Austin [9]. However, many low-income families still find rents too high. 

Transportation (Car Ownership, Public Transport)

Transportation costs in Texas vary depending on whether you own a car, the availability of public transit, and commute times. However, it is the second-highest household expense in the state, with 15% of the total cost. [10]

Car ownership costs look like this:

• Gasoline prices in Texas are $3.07 per gallon on average, among the nation’s lowest. [11] 
• Full coverage annual insurance cost is $2,492 [12]
• The average used car price is $35,061, or around 4.4% more than in the rest of the country. [13]

Public transit passes cost between $35 and $50 per month [14]. The mean commute time in the state is 26.6 minutes [15], with some counties experiencing over 30 minutes. These factors, combined with traffic congestion in bigger cities, raise transport costs. 

Food (Groceries, Dining Out)

Offering Tex-Mex and Southern comfort delicacies, the state is known for its exquisite food culture. Adding to its appeal are affordable grocery costs, with the COLI for groceries being 95.9, or slightly cheaper than in the rest of the country. According to the U.S. Census Bureau, the average Texan spends $286.64 weekly on groceries. [16]

Healthcare (Insurance, Medical Costs)

Healthcare costs in Texas are the fifth-highest in the country. Other statistics do not look promising either, as 14.9% of families have struggled to pay their child’s medical bills in the past year.

In addition, The state has the fourth-highest annual premium for plus-one health insurance coverage ($4,626) and family health insurance coverage ($7,051.33) through an employer. [17]

Average health care insurance expenses look like this:

• $440-$450 for unsubsidized ACA health insurance
• $100-$200 per month, per person, for short-term health insurance
• Around $3,000 for a typical hospital day [18]

Specialized healthcare facilities and services cost significantly more, although there are caps on maximum out-of-pocket expenses for Marketplace plans ($9,450 for an individual and $18,900 for a family in 2024). [19]

Utilities (Electricity, Gas, Water, Internet)

Utility costs in Texas are slightly lower than the national average, and they mostly depend on outside temperature and whether the household uses energy-saving options and providers. The utility bills in the Lone Star state [20] typically look like this:

• Electricity $132
• Gas $61
• Water $37
• Internet $30

Taxes (Property, Sales, Income)

Texas doesn’t charge state income tax, which makes the state attractive for workers. However, property taxes are relatively high, with an average effective rate of 1.47%. Sales tax is around 6.25%, higher in some cities. It also has a local sales rate of 8.2%.

It has one of the lowest tax rates by state per capita, with $4,822 collected by the state. It is generally competitive, ranking seventh in 2025, leaving its residents with more disposable income and making the total cost of living lower. [21]

Cost of Living in Major Texas Cities

The cost of living in major metro areas is generally higher than in rural areas. Here is how far the money goes in each of the big cities. 

Houston

Houston is relatively expensive, although it’s around 8% more affordable than Dallas. [22] This breakdown is how it ranks in major financial aspects:

• Overall cost without rent – 3,930.7$ for a family of four and 1,104.1$ for a single person
• Housing – An average of $1,626.30 for a one-bedroom in the city center
• Food costs – A loaf of fresh white bread costs $2.77, while a gallon of milk costs $3.44
• Transportation costs – A monthly pass for public transit is 75.00 $
• Utilities – Basic utilities are 194.05 $ on average
• Entertainment costs – A cinema ticket is around $15
• Child care  – 1,457.58 $ for one child each month

Dallas 

Dallas is more expensive than Houston but 7.9% more affordable than Austin. [23]

• Overall cost of living without rent – $4,273.8 for a family of four and $1,213.3 for a single person
• Housing – An average of $1,745.96 for a one-bedroom in the city center
• Food costs – A loaf of fresh white bread costs $3.38, while a gallon of milk costs $3.61
• Transportation costs – A monthly pass for public transit is $91
• Utilities – Basic utilities cost $255.16
• Entertainment costs – A cinema ticket in Dallas would cost you $12.88
• Child care  – $1,239.38 monthly per child

Austin

Austin is more affordable, and its residents’ expenses are similar to the expenses in San Antonio. [24]

• Overall cost of living without rent – $3,878.7 for a family of four and $1,084.7 for a single person
• Housing – An average of $2,224.63 for a one-bedroom in the city center
• Food costs – A loaf of fresh white bread costs $3.25, while a gallon of milk costs $4.11
• Transportation costs – A monthly pass for public transit is $45
• Utilities – Basic utilities are $170.82 on average
• Entertainment costs – A cinema ticket is around $14.50
• Child care  – $1,468 for one child each month

San Antonio

Although the costs are similar to those in Austin, San Antonio has 10% lower purchasing power. [25]

• Overall cost without rent – $3,835.0 for a family of four and $1,092.6 for a single person
• Housing – An average of $1,624.62 for a one-bedroom in the city center
• Food costs – A loaf of fresh white bread costs $2.84, while a gallon of milk costs $3.85
• Transportation costs – You can get a monthly pass for public transit for $55
• Utilities – Basic utilities are more expensive than in Austin and Houston, at $221.75 per month.
• Entertainment costs – A typical cinema ticket costs $15 
• Child care – Monthly costs per child are $1,130

Fort Worth

The living expenses in Fort Worth are similar to those in San Antonio, but the purchasing power is slightly better. [26]

• Overall cost without rent – $4,059.1 for a family of four and $1,149 for a single person
• Housing – A one-bedroom in the city center can be rented for $1,611
• Food costs – A loaf of fresh white bread costs $3.01, and a gallon of milk costs $3.40
• Transportation costs – A monthly pass for public transit costs $80
• Utilities – Basic utilities are $230.43
• Entertainment costs – A cinema ticket is around $13.50
• Child care  – $1,825 monthly per child

Cost of Living and Homeownership in Texas

Housing costs in Texas have the greatest effect on the cost of living, and the state’s affordability makes it attractive to aspiring homeowners. 

Affordability and Homeownership Opportunities

Housing costs in Texas are more affordable than in other states, mainly because of lower median home prices and a lack of state income tax. Given the state’s growing population and economic opportunities, appreciating properties can be excellent for homeowners’ long-term financial goals.

The Benefits of Owning a Home in Texas

Homeownership lets you build equity over time, turning monthly payments into an asset. It also offers tax perks like mortgage interest deductions. At the same time, it lets you build stability and fosters deeper connections with the community in your neighborhood. 

Relocating to Texas: Cost of Living Considerations

If you’re considering moving to or within Texas, research the living costs in your desired region. As we’ve seen in this article, they vary greatly — urban hubs like Dallas are more expensive, while smaller cities and rural areas let you live more comfortably on a lower income. 

The Bottom Line 

While Texas doesn’t have the lowest cost of living in the country, it ranks pretty well and has excellent job opportunities. Whatever you choose, make sure to research the available info on potential expenses, especially if you plan to move within the state and sell your home in your current city.

If you need to sell your Texas home quickly and as-is, A-List Properties can help you determine its cash value and give you a fair offer. 

You can request a free quote online or by calling or texting (972) 526-7042. 

References: [1] Missouri Economic Research; [2] FRED; [3] MIT; [4] Rental Real Estate;  [5] FRED; [6] Texas Realtors; [7] Apartments; [8] U.S. Census Bureau; [9] Texas Real Estate Research Center; [10] Bureau of Transportation; [11] AAA; [12] Bankrate; [13] World Population Review; [14] Department of Transportation; [15] U.S. Census Bureau; [16] U.S. Census Bureau; [17] Forbes; [18] Texas Insurance; [19] Healthcare; [20] Forbes; [21] Tax Foundation; [23] Numbeo; [24] Numbeo;  [25] Numbeo;  [26] Numbeo;  [27] Numbeo