The REAL Cost of Living in Texas: Top 5 Texas Cities (2023)

Cost Of Living in Texas: 
Before we start exploring the cost of living in Texas, it's essential to understand what this term 
means.
 
The cost of living is a measure used to compare the affordability of goods and services in 
different locations. It considers the prices of essential items like groceries, housing, 
entertainment, transportation, and other factors that affect how much it costs to live in an area.

 
The living cost in Texas is slightly lower than the national average. The state has a relatively 
inexpensive housing market, which makes homeownership more affordable for many Texans 
and transplants. Grocery prices are also relatively low compared to other parts of the country, 
making it easy to stretch your budget further.
 
But in Texas, the cities can be vastly different regarding the cost of living.
 
For example,
 
San Antonio is generally regarded as the most affordable city in Texas. It has a living cost index 
score about 10 points lower than the national average, followed by Fort Worth, Houston, and 
Austin.
 
On the other hand, Dallas has higher living costs than its state counterparts, with Dallas's worth 
of living index score is about 18 points higher than the national average.
 
The difference between what it would cost per month for a single person in San Antonio and a 
person in Dallas is about $500.
 
How to break down the living expenses?
The breakdown of living expenses can vary accordingly.
 
1.   Salary to Cost of Living Coverage:

❖ Average Salary after taxes in Texas cities:
●     Houston: The average salary after taxes covering the cost of living is 2.9 months 
coverage in Houston.
●     Austin: The second ranking is Austin at 2.8 months.
●     San Antonio: Third is San Antonio at 2.7 months.
●     Fort Worth: The ranking is 2.4 months.
●     Dallas: Coming in for a tie with Fort Worth, it's 2.4 months.
It means that the average salary after taxes would cover the cost of living for two to three 
months in each of these cities.

2.   Cost of Goods:
The cost of goods is the amount someone would pay for everyday items.

❖ Cost of Goods In Cities Of Texas:
Regarding essential commodities, the cost of goods in Texas is relatively low. Milk, eggs, and 
bananas are all everyday staples in any household, so let’s look at what it would cost to 
purchase these items in some of the biggest cities in Texas.
Milk:
●     In Dallas-Fort Worth: Milk is the least expensive at $3.46 per gallon.
●     In Houston: Milk costs $3.56 per gallon.
●     In San Antonio: The cost is $3.93 per gallon.
●     In Austin: Milk is the most expensive at $4.25 per gallon.
It means DFW is the most affordable when it comes to buying milk.
 Eggs:
●     In Dallas-Fort Worth:  Grade AA eggs are $3.69 per dozen.
●     In Houston: Grade AA eggs cost $3.80 per dozen.
●     In San Antonio: Grade AA eggs cost $4.50 per dozen.
●     In Austin: Grade AA eggs cost $4.50 per dozen.
This shows DFW is the most affordable when it comes to buying eggs.
Bananas:
●     In Dallas-Fort Worth: Bananas cost $0.52 per pound.
●     In Houston: Bananas cost $0.52 per pound, the same as in DFW.
●     In San Antonio: Bananas cost $0.60 per pound.
●     In Austin: Bananas cost $0.57 per pound.
Houston and DFW are the most affordable for buying bananas, followed by Austin.

3.   Utilities:
Utilities are essential services such as electricity, water, gas, phone, and internet.

You should visit powertochoose.org to shop for your electricity retailer, if you're in a deregulated
city in Texas. But if you want to avoid taking the time to compare and shop around, a great 
option is EnergyOgre.com.
 
They charge $10/month and will find you the best deal for your needs. Due to Energy Ogre’s 
many customers, they can get amazing deals on short-term contracts.
 
Many customers, including myself and others I know, have saved hundreds on their summer 
bills using this company.

4.   Transportation:
In addition, Gasoline is part of the cost of living and can vary quite a bit from city to city in 
Texas. Right now, Fort Worth comes in as the least expensive.
 ❖Gas Prices In Cities Of Texas :
●     In Fort Worth: The average gas price is $3.12 cents a gallon.
●     In Houston: The average gas price is $3.16 cents a gallon.
●     In Austin: The average gas price is $3.20 cents a gallon.
●     In Dallas: The average gas price is $3.16 cents a gallon.
●     In San Antonio: The average gas price is $3.19 cents a gallon.
Fort Worth has the least expensive gas prices in Texas, but you might find variations depending
on your commute.
 
Fort Worth, Dallas, and Houston have the longest average commutes at 27 minutes, while San 
Antonio has a shorter average commute at 25 minutes.
 
Austin comes in at 24 minutes, but the higher gas prices might make it a wash in terms of cost.
 
Although Fort Worth has the least expensive gas prices, you may come out in the wash similarly
because of the longer commute time.
 
5.   Property Taxes:
Housing costs are the amount someone would pay for rent, mortgage, or property tax.

 
Overall, Texas offers a relatively low cost of living with some variation between cities. Property 
taxes are generally higher than in other states with an income tax.
 
And the reason for property taxes is that the government requires a certain amount of money to 
function, and it is fulfilled mainly by the property taxes here in Texas. In addition, municipal utility
districts (MUD) are also funded by property taxes to pay down bonds and other related costs to 
build water sewers, drainage, and other infrastructure.
 
Municipal utility bonds are generally given to new construction communities. Those districts 
charge an additional percentage on the community’s property taxes to help pay off the municipal
utility bond.
 
Finding a new construction area you love could come with an additional 1% to 1.5% in property 
taxes, possibly even more.  Therefore, you may not be able to afford as much in that 
community.
 
For example,
If you have a $500,000 house, this could mean an extra $5,000 or upwards of $7,500 more than
what you would be paying in another area annually. 
 
So if you are looking to move into a new construction area, make sure you factor in the MUD 
taxes, as they can increase your monthly mortgage plus escrow payments significantly. 
 
Now you can see that different Texas cities have additional costs of living.
  
6. Services:
Services encompass a variety of services such as haircuts, childcare, house cleaning, pest 
control, and more.

Let's pick pest control as an example.
 
Pest Control in Texas:
Pest control is essential in the top 5 major cities of Texas because of bugs and, sometimes, 
mice.  You'll want to have the yard treated quarterly and doors and piping treated at least 
annually (usually in the winter). Many companies cover the entire state, and more than likely, 
there's one near you for all your pest control needs.
 
That's about $150 per quarter, so that will be another budgeted item of about $600 yearly. You 
will want to take that into account if you own a home (or if you're renting and part of your rental 
agreement is that you take care of pest control).
 
7. Flood Insurance:
Insurance costs include property insurance premiums.

 
Flood Insurance in Houston, Texas:
Flood Insurance is more focused on Houston, in particular, because of its proximity to the Gulf 
of Mexico and heavy rainstorms that originate from there.  A person determining where to live 
within Houston should make sure that they know whether or not they're buying in a flood zone 
and if so, they'll need additional flood insurance.
This can be expensive, but it could also save you from severe financial losses from floods. So 
it's essential to look into that when budgeting for a home in Houston.
 
Flood Insurance prices can range anywhere from a few hundred dollars up to a few thousand 
dollars depending on whether you're located near a coastal area or if you're located near a 
place that's been flooded multiple times.
 
Do your research or have a Realtor that can point you in the right direction to help find the right 
home and possibly an insurance price that fits your budget.
 
Wapping Up:
In conclusion, Texas has a unique real estate market with nuances and potential costs. With the
proper guidance and resources from Best Life Texas, you can ensure you're budgeting for the 
right things when buying or renting in the Lone Star State.
 
Thanks for reading, and if you have any queries about your Texas real estate needs, don't 
hesitate to reach us at info@bestlifetexas.com.  We're here to help