Are you thinking about moving to Texas? The average cost of living in Texas in 2025 is about 5–8% lower than the national average. This makes the state an attractive choice for families, professionals, and retirees alike.
Texas offers a strong balance of affordable living and exciting opportunities. From housing and utilities to food and transportation, let’s break down what costs you can expect when living in Texas.
TL;DR: Average Cost of Living in Texas 2025
- Cost of Living Index: 5-8% below national average
- Required monthly salary for middle-class lifestyle: $4,500–$5,300
- Average rent: $1,318/month (16% lower than national average)
- Median home price: $339,500
- Average monthly utilities: 3-4% lower than national average
- Transportation costs: 6% below national average
- Healthcare costs: 1% below national average
- Median household income: $41,661
How Much Does Living Cost in Texas?
The average cost of living in Texas means a monthly salary of around $4,500 to $5,300 is needed to live comfortably. This covers rent or mortgage, food, utilities, healthcare, and transportation. Compared to states like California and Florida, Texas is much more affordable.
Key costs each month include:
- Rent averages about $1,318, which is lower than in many large cities.
- Utilities cost around $581, largely due to electricity needs.
- Groceries are 3-4% less expensive than the national average.
- Transportation costs are about 6% lower than the U.S. average.
- Healthcare is roughly 1% cheaper than in other states.
Texas Housing and Rental Market
The Texas housing market is known for its affordability compared to many other states. The average rent is around $1,318 per month, while the median home price is close to $339,500.
When compared with nearby states, the differences are clear:
- Oklahoma rents are about 20% lower at $1,058. Home prices are 36.5% lower.
- Arkansas rents are 44% lower, with home prices 53.7% lower.
- Louisiana’s rents are similar or a little less. Home prices are 45.5% lower.
- California’s rents are two to three times higher. Median home prices are nearly double.
- Florida’s rents are a bit higher, and home prices are 27.8% higher.
Cities like Austin and Dallas have busy housing markets with rising costs. Houston and San Antonio offer more affordable options and growing jobs.
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Utilities and Other Living Expenses in Texas
Utilities in Texas cost about $581 each month. The main expense is electricity.
Compared to other states:
- Oklahoma’s utilities cost about $397, 32% less than Texas.
- Arkansas and Louisiana have even lower bills at $535 and $460.
- California’s utilities are much higher at $1,039.
- Florida’s utilities are lower, ranging from $250 to $350.
Groceries in Texas cost 3-4% less than the national average. In California, grocery costs are about 20-30% higher. Transportation and healthcare costs in Texas are also lower than average.
Income and Job Market
The median household income in Texas is about $41,661. This income supports a good lifestyle when combined with Texas’s lower living costs. Residents here earn more than in Oklahoma, Arkansas, and Louisiana. However, their income is less than in California and Florida.
Salaries in Texas cities generally cover living expenses well. This draws many people who want good jobs without high housing costs.
Is Living in Texas Worth It?
The average cost of living in Texas makes the state very appealing. It offers affordable housing and daily costs. Also, Texas has many job opportunities and good local amenities.
The state’s cities offer cultural, educational, and entertainment options. So, despite the low cost, residents enjoy a high quality of life.
Regional Cost Differences in Texas
If you plan to move, keep these regional costs in mind:
- Austin and Dallas have fast-growing economies and housing markets.
- Houston is more affordable but offers many jobs.
- San Antonio has lower costs and growing business sectors.
Knowing these local differences helps you pick the best spot for your budget.
Final Thoughts on the Cost of Living in Texas
Texas stands out for its affordable living and strong economy. Its housing prices are much lower than those in California and Florida. Utilities and daily expenses are also reasonable. Texas provides a unique chance to live well without overspending.
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FAQs
What is the average rent in Texas?
The average rent in Texas is about $1,318 per month, which is roughly 16% lower than the national average.
How much do utilities cost monthly in Texas?
The average monthly cost of utilities in Texas is about $581, with electricity making up the largest share.
Is Texas more affordable than California?
Yes, Texas rents and home prices are roughly half or less than California’s, with utilities much cheaper.
What salary do I need to live comfortably in Texas?
To live comfortably, the income in Texas should be around $4,500–$5,300 per month, which supports a middle-class lifestyle.
How do Texas home prices compare to nearby states?
Texas median home prices are higher than Oklahoma, Arkansas, and Louisiana but significantly lower than California and Florida.
