The cost of living in Texas is 9% lower than the US average. According to MIT, the required living wage for a family of three with one working parent is $56, 899. The Texas living wage is lower than the national average and the median income of a Texas household is $61,874, higher than the required living wage for a family of three.
The average home price in Texas is $172,500, which is lower than the US average home price of $217,500. Median rent in Texas is $1,045/mo which is lower than the US average rent of $1,062/mo. If you want to adjust homes prices to local incomes, the ratio of home prices to median household income is about 3 to 1. That means it takes roughly three years of a salary to pay off a house. That compares favorably to the national average of 3.5 to 1.
All in all, Texas has a low cost of living compared to America as a whole. Some particularly affordable metro areas include Dallas, El Paso, and Amarillo.
The city with the lowest cost of living in Texas is Wichita Falls. The cost of housing is the main reason this city of just over 100,000 people has such a low cost of living. The median home value is $102,400 compared to $172,500 for Texas overall. Other goods and services were about average for Texas.
Rent in Wichita Falls is $794/month on average. The rent in Wichita Falls is about 25% lower than the average rent in Texas of $1,045. Housing costs generally account for the largest difference in costs fo living between cities.
The cheapest housing market in Texas is Raymondville. The average home value in Raymondville, TX is $47,000, the lowest in the state. The average home value in Texas is $172,500, almost 4 times higher than Raymondville.
The county in Texas with the lowest cost of living is Maverick County. Maverick County has the lowest cost of living because it has relatively less expensive childcare and housing costs compared to Texas a whole. Childcare costs $9,541 a year in Maverick County for two children compared to the Texas average of $12,238. Housing costs, defined as a blend of the average rent and average mortgage payment, are $8,568 per year in Maverick County compared to $9,951 on average in Texas.