The cost of living in Texas
Texas Housing - May 25, 2019
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. So, before you start looking for moving companies Kyle TX, check carefully.
What is the actual cost of living in Texas?
Living expenses in Texas
What do you think of a typical Texas house? Is it a farm in the village? Big mansion in Dallas? Whatever you think about Texas housing, you should think about low prices. In fact, 70.2% of homes in Texas have a price of $247,000 or less.
In Texas, the average cost of housing is $166,375. However, in some cities, this number may change dramatically. In Dallas, the average cost of a home jumped to $186,830. But one of the biggest changes is in Austin, where the average cost of a home is $322,290.
Like most of the country, housing prices in Texas are steadily increasing. From 2013 to 2018, homes in Texas grew by 7.36% annually. This slows down a bit, as data for the period from 2017 to 2018 shows that the annual rate of appreciation fell to 6.29%.
Overall, Texas is a favorable state for tenants. In particular, the median rate for studios, one-bedroom and two-bedroom apartments is $730, $845 and $1,050, respectively, according to the Apartment List for 2019. Compared to the national average of $827, $947 and $1,175 for the same types of apartments, things look pretty good here.
However, in some major cities in Texas, the figures are higher. In Arlington, the average rent for two bedrooms is 1,232 dollars, which is 57 dollars higher than the national mark. Similarly, Frisco costs $1,585 for two bedrooms. Therefore, before you hire residential movers New Braunfels, think about your new place.
When it comes to utilities, there are a lot of different situations in Texas. This is due to the fact that 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 deals.
According to the US Energy Information Administration (EIA) data, the average monthly bill for electricity in Texas is $122.47. This is almost 10% higher than the average for the United States – 111.67 dollars.
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.
However, food prices in different cities are somewhat different. A gallon of milk and a pound of apples cost 3,09 and 2,01 dollars in Austin respectively. In Dallas, these prices shift to $2.48 and $1.71. We also recommend a monthly food budget of $289.14 for Dallas residents, as well as $320.04 for everyone moving to Austin.
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.
Facts about the different cost 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 actually $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 actually affordable for you?
The cost of living in Texas is not very high. As we could 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.