A Complete Guide to the Cost of Living in Texas

• Overall cost of living in Texas is about 7% below the national average, thanks in part to no state income tax and moderate property taxes.
• Housing remains the biggest savings: the statewide median home price is roughly $360,000—around 15% lower than the U.S. median—and average rents start near $1,100/month for one-bedroom units.
• Everyday expenses such as groceries and utilities are competitive: Texans spend about $320/month on groceries and roughly $270/month on electricity, water, and internet combined.
• Transportation costs benefit from below-national gas prices (approximately $3.00/gallon in early 2025) and affordable public transit options in major metros.
• Healthcare premiums average $600/month for individuals and $1,700/month for families; out-of-pocket costs remain close to the national norm.
• Major Texas cities span a wide affordability spectrum—from more budget-friendly San Antonio to higher-cost Austin—offering choices for every budget.

Whether you’re considering relocating to Texas or building a new home, understanding the Lone Star State’s cost of living is key. Texas combines a favorable tax environment (no state income tax) with below-average housing and everyday expenses—yet costs can vary widely between urban centers and rural counties. 

This guide breaks down what you’ll pay for housing, food, utilities, transportation, and healthcare so you can budget confidently for your Texas lifestyle.

Texas offers strong value across most spending categories compared to the national picture. While housing delivers the biggest savings, grocery bills, utilities, and transportation costs also trend below or near U.S. averages. Still, big metros like Austin and Dallas carry premiums in both rent and lifestyle, whereas smaller markets such as Harlingen or Waco remain among the nation’s most affordable.

• Cost of Living Index: ~93 (U.S. = 100)
• Median Home Price: $360,000 in Texas vs. $425,000 nationally
• Grocery Costs: ~4% below the U.S. average
• Utility Costs: Roughly on par with national levels, thanks to competitive electricity and water rates
• Tax Benefits: No state income tax and average combined state/local sales tax of ~8.3%
• Healthcare: Premiums and out-of-pocket expenses are within 5% of the national benchmark

These factors make Texas an attractive place for building a custom home with Preston Trail Homes—your dollars stretch further here than in many other states.

Median Home Prices & Rent

• Texas Median Home Price: $360,000 (approx. 15% below national median)
• Average Rents (1-BR/2-BR):
  • Houston: $1,100 / $1,350
  • San Antonio: $1,050 / $1,300
  • Dallas: $1,200 / $1,450
  • Austin: $1,500 / $1,800

Tips for Affordable Housing

• Look to emerging suburbs in Collin, Denton, and Grayson counties for new-home communities priced below metro averages.
• Take advantage of homestead exemptions to lower your annual property tax bill.
• Consider quick-move-in Preston Trail spec homes for locked-in pricing and faster occupancy.

• Gas Prices: ~$3.00/gallon (early 2025)
• Car Ownership: $7,500–$15,000/year including insurance, maintenance, and fuel
• Public Transit Passes: Houston ($45/month), Dallas ($55/month), Austin ($50/month), San Antonio ($40/month)

To save, explore carpool programs, park-and-ride services in suburban areas, or transit-oriented communities offered by Preston Trail Homes near major commuter routes.

• Weekly Grocery Bill: $75–$90 for an individual; $200–$300 for a family of four
• Eating Out vs. Home Cooking: Dining out averages $15–$20 per person, while comparable home-cooked meals cost $5–$8 per serving

Balancing home-cooked meals with occasional dining out helps you manage your food budget without sacrificing convenience.

• Electricity: $160/month (average household)
• Water & Sewer: $50/month
• Internet: $60/month for a high-speed plan

Money-Saving Tips:

• Install LED bulbs and smart thermostats to reduce electric use.
• Audit water fixtures for leaks.
• Compare internet providers annually to find promotional rates.

• Insurance Premiums: $600/month (individual), $1,700/month (family)
• Out-of-Pocket Costs: $1,500–$2,500/year per person, depending on plan and usage
• Facility Access: Major metros have abundant hospitals; rural areas may require longer drives for specialty care.

Selecting health plans through the Texas Marketplace or employer benefits—and choosing in-network providers—can minimize both premiums and out-of-pocket charges.

From affordable housing and low taxes to competitive everyday expenses, Texas offers a cost of living that empowers you to build and enjoy your dream home. Whether you’re exploring one of our custom floor plans or considering a spec home in Prosper, Frisco, or Sherman, Preston Trail Homes is here to guide you through every financial consideration.

Have more questions or need personalized guidance? Reach out to our team today—we’re always happy to help!

What is the average cost of living in Texas per month?

The average cost of living in Texas varies by city, but it typically ranges from $2,500 to $3,500 per month. This includes housing, utilities, groceries, and transportation. Factors like lifestyle and location can significantly influence this average.

How does the cost of living in Texas compare to California?

The cost of living in Texas is generally lower than in California, with significant savings on housing, groceries, and utilities. However, specific areas within each state may vary, so it's essential to consider individual circumstances and locations for a more accurate comparison.