Texas is known for its opportunities and distinctive character. Cities like Austin are booming with tech companies, while Houston dominates the energy industry, and Dallas–Fort Worth continues its corporate expansion—all attracting newcomers from across the nation.
But here’s the big question you’re probably asking: Is Texas truly a good place for you to live? Most people find that decision comes down to two major factors—cost of living and housing costs.
This blog will break down what makes Texas appealing to so many people. You’ll learn about housing prices, everyday expenses, and whether the Lone Star State might be the right fit for your long-term goals.
Why Do People Love Life in Texas?
Texas appeals to residents for numerous reasons, particularly its economic and cultural landscape. Besides, the low cost of living in Texas means daily life is highly affordable.
Dallas has become a magnet for Fortune 500 headquarters, while Houston quietly leads the nation in healthcare jobs. The city’s medical district actually employs more people than the entire population of some U.S. towns.
On the flip side, charming places like Fredericksburg and Boerne keep the Hill Country’s German heritage alive through local festivals and family-run wineries. This unique balance of big-city opportunity and small-town culture is what makes Texas special.
You’ll also discover everyday traditions that set the state apart. Fort Worth’s Billy Bob’s, the world’s largest honky-tonk, doubles as a concert venue and even hosts indoor rodeos. San Antonio celebrates its identity with Fiesta, a two-week festival dating back to the 1800s. Finally, there’s also an incredible food scene. Get breakfast tacos in San Antonio, Czech kolaches from Central Texas bakeries, and seafood from the Gulf Coast—which rarely ever makes it into those glossy travel guides.
What Is the Cost of Living in Texas in 2025?
When you compare Texas to national averages, you’ll find the state offers a lower cost of living than many other places. Here’s a closer look:
1. Housing:
Housing costs drive Texas’s affordability advantage more than any other factor. As of mid-2025, the median home price in Texas sits around $310,000–$330,000, which is 20% cheaper than the national average. That’s a significant difference, especially if you’re a first-time buyer.
If you’re planning to rent, you’ll also benefit from Texas’s competitive rental market. Average rents across the state range from $1,200 to $1,600 per month, depending on your chosen city. Compare that to states like California or New York, where rents often exceed $2,500 monthly.
2. Utilities:
Your utility costs in Texas can vary quite a bit. Thanks to deregulated energy markets, you can shop around for competitive electricity rates, which often helps lower your monthly bills. Most households spend about $150–$180 per month on electricity. Just expect those costs to spike during hot summer months when you’re running the AC constantly. When you add water, internet, and trash services, your total utility costs will average closer to $300 monthly.
3. Groceries and Food:
Your grocery budget will appreciate Texas too. Food prices hover around 3–5% lower than the national average. For example, you’ll pay about $3.60 for a gallon of milk, $2.40 for bread, and $2.80 for a dozen eggs. Dining out is also more affordable than in major coastal cities. Mid-range restaurants typically charge $15–$20 per meal, compared to $25–$30 in places like Los Angeles or New York.
4. Transportation:
Here’s one area where costs might surprise you. Texas cities are spread out, and many areas have limited public transportation options. This means you’ll likely need a car. The good news is that gas prices typically run cheaper than the national average (around $3.00 per gallon in 2025). However, car insurance costs can vary significantly depending on which city you choose.
5. Taxes:
One of Texas’s biggest perks is the complete absence of state income tax. You’ll keep more of your paycheck compared to high-tax states like California or New York. However, Texas does have higher property taxes, averaging 1.6–2.3% of your home’s value. This can offset some of your income tax savings.
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What Do the Major Regional Differences Look Like in Texas?
1. Urban Living: In downtown Austin, you’ll pay premium prices for high-rise living, but you’ll enjoy immediate access to the city’s vibrant tech and music scene. Houston offers more affordable city living, with townhomes in neighborhoods like The Heights or Montrose starting under $400,000.
2. Suburban Life: Families gravitate toward suburbs like Round Rock (Austin area) or Katy (Houston area) for larger homes, excellent schools, and safer neighborhoods. You can expect prices in the $320,000–$400,000 range.
3. Small Towns & Rural Areas: In Amarillo, you can still find three-bedroom homes for around $220,000. That’s a fraction of what similar space costs in California. Towns like Waco attract buyers seeking affordability combined with small-city charm (plus a bit of Fixer Upper fame).
Career, Lifestyle, and Top Places to Call Home in Texas
Texas offers an impressive range of choices to match your specific needs and preferences. Here’s a closer look at a few top options:
1. Houston: Energy Capital Meets Cultural Melting Pot
Houston attracts professionals who want both career acceleration and lifestyle diversity. The city hosts Fortune 500 giants like ExxonMobil and Phillips 66, plus a massive healthcare sector centered around the Texas Medical Center—the world’s largest. Whether you work in energy, medicine, or tech, you’ll find excellent opportunities here.
2. Austin: Tech Hub with Creative Soul
Austin has transformed into Silicon Hills, with major companies like Tesla, Apple, and Oracle establishing significant campuses here. This ecosystem creates high-paying opportunities in software engineering, design, and green energy. Just be prepared—housing prices here are among Texas’s highest.
3. Dallas–Fort Worth: Corporate Powerhouse with Suburban Comfort
If your career focuses on finance, consulting, or corporate leadership, Dallas–Fort Worth should be at the top of your list. The metro hosts Toyota’s North American headquarters, JPMorgan Chase’s major campus, and AT&T. This corporate concentration creates job security and clear career advancement paths.
4. San Antonio: History, Affordability, and Steady Careers
Many people overlook San Antonio when comparing it to Austin and Houston, but it’s actually a hidden gem if you value affordability. Career opportunities center around military bases, healthcare, cybersecurity, and tourism. While it’s not the top choice for rapid startup growth, San Antonio offers stable, long-term career prospects.
Tips for Homebuyers in Texas
1. Monitor Property Taxes Closely: Texas property taxes can significantly impact your total homeownership costs. Homeowners in cities like Frisco and Plano often pay over 2% of their home’s value annually, while areas like San Antonio or El Paso offer lower rates. Always check with the county tax office before finalizing your budget.
2. Consider New Construction Areas: Around Dallas–Fort Worth, master-planned communities in places like Prosper, Celina, and Mansfield are experiencing rapid growth. Builders frequently offer mortgage buydowns and closing cost incentives, sometimes making new homes more affordable monthly than existing properties.
3. Factor in Weather-Related Costs: If you’re considering coastal areas like Houston and Galveston, flood insurance becomes essential, and premiums can add hundreds to your annual housing expenses. In North Texas, frequent hailstorms mean you should budget for higher home insurance premiums and consider impact-resistant roofing.
4. Look Beyond Austin for Better Value: While Austin remains expensive, nearby cities like Kyle, Buda, and Georgetown offer more space at lower costs with reasonable commutes. These commuter towns represent excellent value, especially for first-time buyers.
5. Take Advantage of Local Assistance: Programs like My First Texas Home and TSAHC grants can help lower your down payment or interest rate requirements, particularly valuable if you’re buying in higher-cost metros.
Should You Make Texas Your New Home?
If you’re seriously considering a move, take time to research specific cities and neighborhoods thoroughly. Your experience can vary dramatically between a bustling city like Austin, a comfortable suburb near Houston, or a quiet rural town in West Texas.
Texas isn’t for everyone. You’ll need to consider challenges like hot summers, higher property taxes, and potentially long commutes in certain areas. When you weigh these against lower overall living costs and the extensive variety of housing and lifestyle options, Texas generally offers significant advantages over many coastal states.
Ready to start your search? You can find Texas homes for sale right on your mobile device with Houzeo, America’s leading home buyer app. Download it free from the Apple App Store or Google Play Store and start exploring your options today.
