The cost of living in Texas
Texas Housing - July 30, 2022
Texas, also known as the Lone Star State, is the second largest state in the United States by area. It offers a diverse landscape, both in terms of location and cost of living. To understand the total cost of living in Texas, it is necessary to examine not only the state indicators but also the indicators of individual municipalities. Although there are many large cities in Texas, there are also places where prices and salaries are quite low. We’ll go through all the necessities like gasoline, natural gas, electricity, food, health insurance, etc. Our analysis will be thorough, so you don’t have to do it yourself. So, before you start looking for moving companies Kyle TX, check carefully. Let’s dive in!
What is the actual cost of living in Texas?
Housing prices in Texas
What do you think of a typical Texas house? Is it a farm in the village? Big mansion in Dallas? We, as local movers Texas would advise you to think twice about the prices. Texas has an average price of $313,339, which is 24% higher than the average price in June 2022 compared to June 2021. However, in some cities, this number may change dramatically. In Dallas, the average cost of a home jumped to $430,000, and the prices of homes have increased 22.5% year after year. But one of the biggest changes is in Austin, where the average cost of a home is $626,500. Like most of the country, housing prices in Texas are steadily increasing. Now because of the post-pandemic inflation the prices are going to rise since we’ve entered stagflation. That is a period where only expenses will rise.
If you’re on a budget and you’re working remotely, we can suggest to you the place with the lowest housing prices. Harlingen has the median purchase price of only $81,900. It’s only located 30 minutes from Brownsville, and it’s nicknamed the Tropical Playground of Texas”. It’s a small city with only 65,634 residents, but it has all the amenities of a large city. At the other end of the spectrum, Austin is the most expensive city, with the highest median house price of $485,400. It’s a big city so you have everything that you need and it’s not far away. So if you’ve decided to move to Austin, but you’re not sure which are some of the best neighborhoods, you can count on us.
Rental prices in Texas
Overall, Texas is a favorable state for tenants. In particular, the median rate for studios, one-bedroom, two-bedroom apartments, three-bedroom, and four-bedroom are $65, $685, $831, $1,164, and $1,388; that is according to the Texas Fair Market Rent for 2022. Compared to the national average of $827, $1,7,01, and $2,048 for the same types of apartments. However, in some major cities in Texas, the figures are higher. In Arlington, the average rent for two bedrooms is $3,210, 50% more expensive than the national average which is $2,048. Similarly, Frisco costs $1,814 for 942 sq. ft. Therefore, before you hire residential movers New Braunfels, think about your new place. Because of the ongoing conflict in Ukraine, the prices of gas, oil, and other materials and foods are increasing. Why are they increasing? Because many countries like the US have imposed sanctions on Russian goods and services.
If you’re on the budget, then Greenville, $543 per month, is your best option because that is the city with the lowest rent in the state of Texas. This city is located in Hunt County, Texas, northeast of Dallas; it’s approximately 50 miles from Dallas, so it’s less than an hour’s drive. Some other options are Wolfforth $573, Moulton $599, and Bay City $611/month. So as you can see, there are certainly cheaper options. If you’re looking for the place with the highest rent prices, it’s downtown Austin. The median price for an 862 sq. ft. apartment is $1,735, also, Austin’s average year-over-year rent increase is 26%. But only this year prices have increased by 21.1% because of the ongoing recession.
Cost of electricity in Texas
When it comes to utilities, there are a lot of different situations in Texas. This is because in some parts of the state, there is an unregulated market for public services, and in other places, including El Paso and San Antonio, there are communal monopolies. According to the Texas Tribune, consumers in unregulated markets pay more for utilities than in exclusive cities. However, a deregulated market is becoming increasingly affordable, and experienced buyers can find good deals. As you know, prices of electricity have risen just like prices of everything else so try to conserve and save more energy. If you have an opportunity, install some solar panels or windmills if you’re somewhere out of the city.
- The median price for commercial electricity is 8.51 cents/kWh (27% lower than the national average)
- The median price for residential electricity is 12.8 cents/kWh (11% lower than the national average)
These costs will probably go up because at the time of the writing of this article, it’s the second quarter of 2022, and the GDP -is 0.9% EXP 0.4%. The United States is officially in a Recession. Traditionally, two successive quarters in the red would be defined as a recession. So expect the prices of absolutely everything to up.
Cost of gasoline in Texas
As you’ve already experienced, the prices are going through the roof when it comes to gasoline. The price of the Regular is $4.105, Mid-grade $4.511, Premium $4.827, and Diesel $4.993. We have to advise you that the prices we presented to you were updated on July 16th, 2022. We, as long distance movers Texas can tell you that the prices of moving will also rise, so if you have to move, do it now. You can schedule an appointment through our website and get a free quote. Now just a month ago, in June 2022, the average price per gallon of gasoline in Texas was $4.695. While the national average was $5.014, as you can see, the prices will continue to rise. So be very careful about the fall and winter, save money and be more eco-friendly by walking more.
Food prices in Texas
Texas is famous for its abundance of food, from Tex-Mex to barbecues and chili to Texas toasts. A single adult with no children living in Texas should expect to spend $2,995 on food per year. On the other hand, a family of two working adults with two children will spend $8,820 per year on food. That was in 2019, so an average family of four now has to pay $9,835 for the same amount of food. However, food prices in different cities are somewhat different. A gallon of milk and a pound of apples cost $3,09 an2,01 dollars in Austin, respectively. In Dallas, these prices shift to $2.48 and $1.71. We also recommend a monthly food budget of $320.14 for Dallas residents, as well as $374.04 for everyone moving to Austin.
Now when it comes to correlation with food, we have to say that the median income for a family of four is $76,073. That is slightly lower than the national average of $80,069 per year. So as you can see, prices should be a bit lower than the national average, but you should consider that they’ll probably increase because of inflation and gas shortage. So these are just some of the many reasons you should move to Texas. Now in 2022, the current inflation is 9.1%, and that is shocking the food prices; for example, a bag of rice that usually costs $17 is now $25. On average, in 2019, people who would spend $100 in grocery stores now have to spend $300 on the same items. Stagflation is hitting us hard, this is the worst period in the last 40 years, and it’s going to become even worse.
Here’s the good news: in Texas, there is no state income tax or estate tax. This makes this place particularly suitable for retirees. If you’re wondering how your finances may be different in Texas, try talking to a financial advisor. The Lone Star State sales tax varies from 6.25% to 8.25%, with a gas tax of 20 cents per gallon. As in many states where there is no income tax, taxes on real estate in Texas are at a higher level. The average effective property tax rate is 1.86%. Real estate tax rates in some counties even exceed 2.00%.
Of the eight metropolitan areas of Texas, seven of them have average health prices at or above the national level. The highest prices for health care in the state of Lone Star are in Dallas (16%) and Houston (10%). The only exception is the Corpus Christi area, which is 4% below the national average. Now when it comes to health insurance, the average monthly premium without a subsidy is $424, which is cheaper than in 2021 when it was $436. If you want life insurance as well, the average life insurance premium in Texas for 2022 is $633 per year or $52 per month. That is slightly higher than the national average of $611 per year.
Now we, as moving companies San Antonio can tell you that other than life insurance moving insurance is also important to ensure your goods. You have three different types of insurance. First, there is a Basic carrier liability which only covers 30 cents/per pound within the state and 60 cents/pound interstate. The next one is declared value which covers your entire shipment. For example, if it (your shipment) weighs 5,000 pounds, your mover is liable for up to $12,000. There is also an additional $1.25 fee for every pound of shipment. Full replacement liability is for those who have more expensive things. So let’s see what the math says it’s the $3,50 to $4,50 per pound of shipment, plus there is a deductible part if it can go anywhere from $100 or more. Also, movers only have to pay the part of $0.60 the rest is up to insurance companies.
Facts about the different costs of living in Texas
The minimum wage in Texas is $7.25, which corresponds to the federal minimum wage. However, this figure is far from the actual subsistence minimum for one adult without children in Texas. The cost of living in Texas for such a person is $11.50. For two adults with two children, the living wage jumps to $14.78.
Next steps for your move to Texas
If you are moving to Texas, you can choose a new bank that is popular in the area and has good interest rates, account offers, and customer service. American First National Bank, Allegiance Bank, Spirit of Texas Bank, TBK Bank, and Texas Star Bank are some of your local options. It is also sensible to understand how moving to Texas will affect your budget and long-term financial plans. A financial advisor can help you navigate large life changes, such as movement, or simply define and achieve your financial goals in general.
Is moving to Texas affordable for you?
The cost of living in Texas is not very high. As we can see, housing prices are mainly below the national average. And not to mention the complete absence of state income and estate taxes. But, utilities, food, and health care are not so cheap. Although, you can find some affordable places if you look carefully. So, if you are planning to move to the Lone Star State, we recommend thinking about everything thoroughly before making the final decision. We at movers Austin would like to thank you for reading this article; we hope that it was helpful and have a nice move!