What is the Cost of Living in Texas?

Thinking about making a move to the Lone Star State? You're not alone. Texas has been attracting newcomers for years, and a big part of the appeal is often the cost of living in Texas. From the bustling metropolises to the quieter suburbs, Texas offers a unique blend of opportunity and affordability that's hard to find in many other parts of the country. If you're wondering how the Texas cost of living stacks up, especially if you're looking to buy a brand new home, you've come to the right place.

The short answer is: the cost of living Texas is generally lower than the national average, making it an excellent financial choice for many families and individuals. However, just like any large state, your living expenses in Texas will vary a bit depending on where you decide to put down roots. Let's break down the major costs - housing, utilities, and everyday expenses - to give you a clearer picture of what your budget might look like.

The Lone Star Advantage: Comparing Texas to the U.S.

Overall, Texas is often cited as being about 7% to 8% more affordable than the national average. This difference might not sound huge on its own, but when you look at how it breaks down across your biggest monthly expenses, the savings can really add up. The single most important factor driving this affordability is often housing.

Beyond the general numbers, one major financial perk of calling Texas home is the lack of a state income tax. This means more of your paycheck stays right where it belongs: in your pocket. While property taxes can be higher in some areas to compensate for the lack of state income tax, the overall tax burden is still often competitive, especially when paired with the lower cost of real estate.

The Biggest Factor: Housing Costs in Texas

When most people talk about the cost of living in Texas, they start with housing, and for good reason. On average, the cost of housing in Texas is roughly 16% lower than the national average. This is where you'll see some of the most dramatic savings compared to places like the Northeast or the West Coast.

But, as we mentioned, Texas is huge and diverse. The cost of a home in one of the major metro areas will be quite different from the cost in a smaller, outlying city. Here is a snapshot of the housing costs in the state's biggest markets:

Houston: This is one of the most affordable large metro areas in the state. While prices have increased, the median home price here remains very competitive. Houston is known for its diverse job market and relatively low housing costs for a city of its size.
Dallas-Fort Worth (DFW): The DFW area is a massive hub of commerce and culture. Housing costs here are generally higher than in Houston or San Antonio, but they are still often below the national median home price. Areas like Fort Worth tend to be a bit more budget-friendly than central Dallas or its northern suburbs like Plano.
San Antonio: A city rich in history and charm, San Antonio offers one of the most attractive housing markets among the major Texas cities. You can typically find a brand new, beautiful home here for a significantly lower price than in Austin or even parts of Dallas.
Austin: As the state capital and a major tech hub, Austin is the most expensive city in Texas when it comes to housing. The median home price is higher here than the national average. However, the strong job market and high quality of life often offset the increased cost for many residents.

The good news is that no matter which of these major markets you're drawn to, Coventry Homes builds in all of them. Whether you’re dreaming of a spacious new build in a quiet Houston suburb, a modern home near the action in DFW, a charming community in San Antonio, or a stylish design outside of Austin, we have options that allow you to take advantage of the favorable cost of living Texas has to offer.

Digging into Your Monthly Bills: Utilities

Next up are utilities, an essential part of your monthly living expenses in Texas. This is one category where Texas tends to be slightly higher than the national average, usually just a few percentage points. This difference is largely due to the hot summers, which means higher use of air conditioning.

Here’s a rough breakdown:

Electricity: Texas has a largely deregulated electricity market, which is great because it gives consumers the power to shop around for the best rates and plans. However, you should expect your electricity bill to slightly higher during the peak summer months (July through September) when the AC is running constantly. On average, the monthly electric bill in Texas is comparable to or slightly higher than the national average, but your shopping habits and home efficiency make a big difference.
Water and Natural Gas: These costs tend to be more stable, though they can vary depending on your city's local providers.
Internet and Cable: These expenses are largely in line with what you'd pay in other major U.S. metropolitan areas.

When you're shopping for a new home, one thing that can help keep your utility bills low is choosing a builder committed to energy efficiency. Coventry Homes incorporates energy-saving features and construction techniques into every home, which can help mitigate the slightly higher average cost of utilities and save you money year-round.

Daily Life: Groceries, Transportation, and Other Expenses

Beyond housing and utilities, the third part of the Texas cost of living puzzle is your everyday spending. When you factor in things like food, gas, and miscellaneous goods and services, Texas offers more savings.

Groceries: Grocery costs across Texas are typically 3% to 6% lower than the national average. You'll find great prices whether you’re shopping at big-box stores or local markets in any of the major metro areas.
Transportation: Since Texas is a state built for drivers, transportation is a key expense. Gas prices are often slightly lower than the national average. However, depending on your commute in a large city like Houston or Dallas, you might spend more on fuel simply because of the distances you cover. Overall, transportation costs are around 6% lower than the national average.
Healthcare: Healthcare costs are competitive and typically fall slightly below the national average.
Miscellaneous Expenses: This covers everything else, from clothing and dining out to entertainment and personal care. These costs are generally comparable to the national average, though shopping for services can vary from city to city. For instance, dining out in downtown Austin might be pricier than grabbing a bite in a San Antonio suburb.

Your Best Bet is a New Home in Texas

The simple truth is that the cost of living in Texas remains a huge advantage for anyone looking for a high quality of life without the crushing high costs of the coasts. The biggest savings come from housing, which is fantastic news for prospective homeowners.

By choosing a new home from Coventry Homes, you are positioning yourself to maximize those savings. We build energy-efficient homes in desirable communities across all of the major markets Houston, Dallas-Fort Worth, San Antonio, and Austin. You get the benefit of lower-than-average housing costs in a thriving state, and a brand-new, modern home that helps keep your long-term living expenses in Texas down thanks to its built-in efficiency.

Categories: Texas