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Exploring the Affordable Cost of Living in Texas

Dreaming of a Texan adventure? From live music in Austin to cheering for the Dallas Cowboys, Texas has something for everyone. But can you afford to make the Lone Star State your home? Let’s break down the cost of living in Texas compared to the national average, so you can confidently decide if Texas is the right move for you.

The Average Cost of Living in Texas: Everything may be bigger in Texas, but is it also more expensive? Surprisingly, the cost of living in Texas is 7% lower than the national average. However, it’s important to note that costs can vary significantly between different Texas cities, ranging from 23% lower to 12% higher than the national average.

Cost of Living Index (Compared to U.S. Average):

  • Total: 92.6 (Texas) vs. 100 (U.S.)
  • Housing: 84.4 vs. 100
  • Utilities: 103.3 vs. 100
  • Groceries: 90.8 vs. 100
  • Transportation: 92 vs. 100
  • Health Care: 94.8 vs. 100
  • Miscellaneous: 96.7 vs. 100
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Housing Costs in Texas:

In fall 2021, the median home price in Texas was approximately $350,000, which is 8% lower than the national median. Rent for a two-bedroom apartment was nearly 4% lower than the national median of $1,300. However, it’s important to note that housing costs can vary greatly across Texas cities.

Average Home Price and Apartment Rent in Various Texas Cities:

  • Austin: $409,079 (Home) / $1,583 (Rent)
  • Dallas: $387,379 (Home) / $1,598 (Rent)
  • Houston: $316,904 (Home) / $1,095 (Rent)
  • San Antonio: $285,073 (Home) / $1,382 (Rent)
  • Amarillo: $213,905 (Home) / $912 (Rent)

Utilities:

Utility costs in Texas range from 12% lower to 30% higher than the national average, depending on the city. For example, Texarkana in the east is 12% lower, while Corpus Christi on the Gulf of Mexico is 30% higher.

Groceries:

Grocery costs in Texas range from 21% lower to 3% higher than the national average. For example, Waco, south of Dallas, is 21% lower, while El Paso is 3% higher.

Transportation:

Transportation costs in Texas range from 22% lower to 1% higher than the national average. Amarillo in the north is 22% lower, while San Marcos, south of Austin, is 1% higher.

Health Care:

Health care costs in Texas range from 29% lower to 13% higher than the national average. For example, McAllen in the south is 29% lower, while Dallas is 13% higher. Longview, east of Dallas, is about 4% lower than the national average.

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Taxes:

Texas boasts no state income tax, but it does have a state sales tax rate of 6.25% (or 8.19% with local rates included), making it the 14th highest in the country for total sales tax.

Miscellaneous Goods and Services:

Miscellaneous costs in Texas range from 21% lower to 14% higher than the national average. Corpus Christi represents most Texas cities, being 3% lower than the national average.

Conclusion:

If you’re considering a move to Texas, it’s important to evaluate your budget carefully. With an average cost of living lower than the national average, Texas can offer an affordable and vibrant lifestyle. Remember to compare specific cities to find the one that aligns best with your financial situation.

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