Are you considering a move to Texas? If so, you’re in luck, because it is an affordable place to live! To help you in your search, we did the math to find out which of the 50 most populous cities would be the cheapest places to live in Texas.
We considered factors like median home prices, average rent, average effective property tax rate, the estimated living wage, and the cost of living index for not only transportation and groceries but also the overall cost of living index. We then factored out towns with a population below 10,000 to end up with a list of the cheapest major cities.
Explore the list below to help you choose which cities offer affordable living so that you can save more money for all the other things you enjoy.
1. Amarillo
The most populous city in the Texas panhandle, Amarillo is the number one cheapest city to live in Texas. Everything in this city is well below the national average, making it a great spot to choose if you’re looking to save more money for vacations, retirement, or those occasional rainy days.
Median Home Price: $147,611
Average Rent: $850 per month
Average Cost of Bread: $2.29
Estimated Living Wage: $18.14
Cost of Living Index: 80.1
2. Brownsville
Located on the western Gulf Coast in South Texas, Brownsville is yet another one of our cheapest cities. The 18th largest city in Texas and home to Charro Days, Brownsville is a city that has a 70.3 cost of living index. To put it simply, that means that prices for most things will be about 29.7 percent cheaper than the national average. Brownsville also was the cheapest place to rent on our list.
Median Home Price: $118,205
Average Rent: $736 per month
Average Cost of Bread: $2.25
Estimated Living Wage: $17.31 per hour
Cost of Living Index: 70.3
3. Wichita Falls
Based on our research, Wichita Falls, TX is the cheapest major city to buy a house. If you’re looking to purchase a home, you might want to consider this Texas city. Wichita Falls also had the cheapest cost of transportation out of all the more populated cities on the list. At 65.8, transportation here is 34.2 percent cheaper than the national average.
Median Home Price: $116,290
Average Rent: $794
Average Cost of Bread: $2.25
Estimated Living Wage: $17.47
Cost of Living Index: 74.5
4. Laredo
On the northern bank of the Rio Grande river sits Laredo, TX. Homes in Laredo are priced well below both the national average of $269,039 and the Texas average of $224,266. For renters, Laredo was one of the top 10 cheapest Texas cities for renters. With most prices well below the national average, Laredo can be a great place to live if you want to save some money.
Median Home Price: $162,457
Average Rent: $851
Average Cost of Bread: $2.31
Estimated Living Wage: $17.86
Cost of Living Index: 84.0
5. Lubbock
Fifth on our list is Lubbock, TX. Lubbock is not only the 11th most populous city in Texas but it is also in the top 10 cheapest cities for home prices, the overall cost of living, grocery costs, transportation costs, and estimated living wage. If you’re looking to save a few dollars, what better place to live than the birthplace of Buddy Holly.
Median Home Price: $159,201
Average Rent: $955
Average Cost of Bread: $2.30
Estimated Living Wage: $17.92
Cost of Living Index: 79.9
6. Beaumont
This southeastern Texas city is home to the famous Spindletop-Gladys City Boomtown museum which is a recreated town showing life during the start of the Texas oil boom. This Jefferson County city is a great place to live if you want to save money. It’s one of the top 10 cheapest places to buy a house or to rent according to our research.
Median Home Price: $124,798
Average Rent: $868
Average Cost of Bread: $2.28
Estimated Living Wage: $18.10
Cost of Living Index: 78.3
7. Waco
Halfway between Dallas and Austin, you will find Waco, TX. Home to Baylor University, Waco is a thriving Texas city that is a great place to start a family. With home prices well below both the US and Texas average at $154,794, you’ll be able to finally afford the home of your dreams.
Median Home Price: $154,794
Average Rent: $862
Average Cost of Bread: $2.31
Estimated Living Wage: $17.80
Cost of Living Index: 77.0
8. Abilene
Named one of the top 20 cities in America to buy a house by Niche, Abilene, TX is one of our top 20 cheapest major cities in Texas. With an average home price of $148,033, you’ll have money to spare if you choose this city as your next hometown.
Median Home Price: $148,033
Average Rent: $924
Average Cost of Bread: $2.30
Estimated Living Wage: $17.68
Cost of Living Index: 78.1
9. Killeen
Killeen, TX is one of the largest cities in Bell County and is also one of the top 10 cheapest places to live in Texas. In Killeen, a family of four with two working adults would only need to make about $17.63 per hour to afford a comfortable lifestyle. It is one of the 10 lowest cities for estimated living wages on our list.
Median Home Price: $150,113
Average Rent: $923
Average Cost of Bread: $2.28
Estimated Living Wage: $17.63
Cost of Living Index: 78.5
10. McAllen
McAllen, TX is the second-best place to live in Hidalgo County and part of that is probably due to how affordable it is. The average rent in McAllen is only about $789 a month, making it a great city for renters. Furthermore, grocery prices in McAllen tend to be 7.9 percent cheaper than the national average making regular staples like bread 20 cents cheaper than the $2.50 US average price.
Median Home Price: $157,232
Average Rent: $789
Average Cost of Bread: $2.30
Estimated Living Wage: $17.37
Cost of Living Index: 78.6
11. Corpus Christi
Looking to start a family in Texas? Why not consider Corpus Christi? You could buy a beautiful new home for an average price of $179,046 and have money to spare! Additionally, transportation costs in this major Texas city are 20.3 percent below the US national average likely due to its robust inner-city public transportation system that has 28 different bus routes.
Median Home Price: $179,046
Average Rent: $1,028
Average Cost of Bread: $2.32
Estimated Living Wage: $19.20
Cost of Living Index: 83.1
12. El Paso
El Paso, TX is the 22nd largest city in the entire United States, yet you will find that it is amongst one of the most affordable places to live in Texas. Unlike most major US cities, housing costs in El Paso are relatively low. The average home price is $152,537 and rent is only $837 per month. Both rent and average home price were within our top cheapest housing costs according to our research.
Median Home Price: $152,537
Average Rent: $837
Average Cost of Bread: $2.30
Estimated Living Wage: $17.61
Cost of Living Index: 81.4
13. San Antonio
With average home prices about $22,000 cheaper than the Texas average and approximately $67,000 cheaper than the average home price in the United States, San Antonio might need to be the next place you buy a home. While this Bexar County city isn’t the cheapest place to live in Texas on our list, it is still extremely affordable making it a great place for young families.
Median Home Price: $202,634
Average Rent: $992 per month
Average Cost of Bread: $2.29
Estimated Living Wage: $19.38
Cost of Living Index: 89.7
14. Pasadena
Home to the largest all-volunteer fire department in the United States, Pasadena, TX is one of the 20 most affordable cities in Texas. While most prices in this city are well below the national average, transportation costs are quite high. Transportation costs are 17.1 percent above the national average. However, most other prices are well below the national average.
Median Home Price: $175,494
Average Rent: $963
Average Cost of Bread: 2.41
Estimated Living Wage: $19.64
Cost of Living Index: 91.2
15. Midland
Home town to former First Lady Laura Bush, Midland, TX is a diverse, family-oriented city in the Lone Star State. Home prices in Midland are higher than the Texas average of $224,466 but they are still about $9,000 cheaper than the US National Average of $269,039.
Median Home Price: $260,079
Average Rent: $1,262
Average Cost of Bread: $2.43
Estimated Living Wage: $19.90
Cost of Living Index: 98.6
16. Houston
Houston is not only the fourth largest city in the United States but it is also one of the cheapest places to live in Texas, a great feat for a major US city. Housing in Houston is relatively affordable with both Average home prices and average rent being below both the Texas and US national averages. Additionally, Houston had the lowest If you’re looking for a major city to call home, Houston might be right for you.
Median Home Price: $204,810
Average Rent: $1,041
Average Cost of Bread: $2.45
Estimated Living Wage: $17.14
Cost of Living Index: 96.5
17. Arlington
Arlington, TX is part of the Dallas-Fort Worth metropolitan area. It is home to both the International Bowling Hall of Fame and the Original Six Flags theme park. While the cost of living in this Texas city is 0.6 percent above the national average, transportation is 6.3 percent below average. Housing in this city is also below the national average for both rent and purchasing a home.
Median Home Price: $236,401
Average Rent: $1,055
Average Cost of Bread: $2.45
Estimated Living Wage: $20.44
Cost of Living Index: 100.6
18. Denton
Denton, TX is known for its quality schools, diverse population, and Arts and Jazz Festival. 18th on our list of cheapest places to live in Texas. Denton has low transportation costs. Compared with the national average transportation cost of $11,345 per year, transportation in Denton should cost you about $10,131.09 per year, or 10.7 percent less than average.
Median Home Price: $266,964
Average Rent: $1,082
Average Cost of Bread: $2.48
Estimated Living Wage: $20.53
Cost of Living Index: 97.1
19. Irving
This Dallas city suburb is yet another of our 20 most affordable places to live in Texas. Irving, TX is a great place for young professionals and young families. Average home prices in Irving are $14,654 below the national average home price of $269,039.
Median Home Price: $254,385
Average Rent: $1,146
Average Cost of Bread: $2.49
Estimated Living Wage: $20.43
Cost of Living Index: 100.6
20. Mesquite
Mesquite, TX is a diverse suburb of Dallas and is best known for its many trees according to the National Arbor Day Foundation. While transportation costs in Mesquite are high (23 percent above the national average), other costs are low. In fact, home prices in Mesquite are approximately $65,000 below the national average making it a great place to call home.
Median Home Price: $204,027
Average Rent: $1,104
Average Cost of Bread: $2.42
Estimated Living Wage: $20.43
Cost of Living Index: 98.5
Methodology
To come up with a list of the top 20 cheapest places to live in Texas, we started with a list of the 50 most populated cities in the state. While many rural areas are certainly cheaper on paper, we had to consider that because they are often further away from high-paying jobs, this might cause undue strain on families and increase their cost of living, making the move to these places more expensive.
To calculate which cities were cheaper to live in, we used data from a variety of sources. We factored in median home prices, average rent, average effective property tax rate, the estimated living wage, and the cost of living index for not only transportation and groceries but also the overall cost of living index.
We wanted to put the cost of living for groceries in some perspective so we used the average cost of bread in the United States and multiplied it by the groceries cost index to give readers an idea of what bread might cost in these cities when not on sale.
After collecting all these data points for each of the 50 cities on our list, we ranked each city based on each factor. After ranking them for home prices, rent, effective property tax rates, transportation cost of living index, groceries cost of living index, and overall cost of living index, we then averaged their ranks to get a final ranking. We factored out any towns with a population of 10k. The list we presented above are the cities that ranked lowest on the list.
If you’re looking to make a change in your life, consider calling one of these 20 cheapest places to live home. By saving money on your day-to-day expenses, you can save more money for adventures, retirement, or your children’s college funds. Contact Better Homes and Gardens Real Estate: HomeCity today for more information.
