Texas cost of living in 2023
The Lone Star State, Texas, has emerged as one of the fastest-growing states in the nation, with its population soaring by over 4 million between 2010 and 2020. A myriad of factors have contributed to this surge, including abundant job opportunities, appealing weather, and thriving cities. However, one of the primary draws for newcomers is the Texan cost of living, which remains notably lower than the national average. In this blog post, we’ll delve into the various aspects of living costs in Texas, shedding light on housing, utilities, transportation, and more.
Housing Costs:
When it comes to housing, Texas offers a budget-friendly market compared to many other parts of the country. In the first quarter of 2023, the median cost of a home in Texas stood at $326,800, significantly below the national figure of $388,800. Rental costs are also notably lower, with an average monthly rent of approximately $1,446, compared to the national average of $1,967.
Utility, Transportation, and Grocery Expenses:
Texans enjoy lower utility costs, with the average monthly electricity bill being $155, which is 7% lower than the national average. Transportation costs, essential for most residents, are also reasonable. According to the MIT living wage calculator, a single adult can expect to spend about $5,477 annually on transportation. Additionally, Texas boasts some of the lowest gas prices in the nation, averaging around $3.06 per gallon as of mid-May.
Food prices in Texas are also affordable. MIT data indicates that a single adult spends approximately $3,926 annually on food, or about $327 per month. For a family of four, the yearly expense is estimated at $11,564.
Local Taxes:
One of the major benefits for residents of Texas is the absence of a state income tax. However, property taxes are relatively steep, with a rate of 1.6 percent, ranking Texas as the sixth most expensive state in this regard. It’s worth noting that homeowners aged 65 or older have the option to defer their property taxes until after their estates are settled.
Job Market in Texas:
Texas is renowned for its robust job market, driven by industries like oil and gas, with major employers including BP and ExxonMobil. The tech sector, particularly in the Austin area, is also flourishing. Despite a booming job market, the state’s unemployment rate stood at 4.0 percent as of April 2023, slightly above the national rate of 3.4 percent.
Conclusion and Next Steps:
With its thriving economy, affordable living costs, and diverse range of lifestyles, Texas beckons those seeking a new place to call home. Before making the move, it’s advisable to spend time exploring the various cities and neighborhoods, considering factors like budget and income. MIT’s living wage calculator suggests that a single adult would need to earn around $35,000 annually to comfortably reside in Texas.
Finding a local real estate agent with a deep understanding of the area can be a crucial first step. Their expertise will be invaluable in navigating the options and making the transition to life in the Lone Star State seamless.