The Real Cost of Living in Texas State
Do you desire to live in the Lone Star State? Well, it is time to get all the facts about the state right. This way, you will understand the culture and the true cost of living here. Texas is the second largest state among the United States by area. The state has varied landscape, both in terms of terrain and cost of living. To get a feeling of the overall cost of living in Texas, we looked at individual cities in the state. Even though Texas has plenty of boomtowns, there are also places where the cost of living and wages are low. Here are different aspects of the cost of living and their estimates.
Texas Home Prices
What image do you have of the exemplary Texas home? Is it a farmhouse in the country in a huge stretch of land? A big Dallas mansion with a yard and surrounded by a white picket fence? Whatever you think of when you think Texas houses, prices should also count.
According to a recent study by the U.S. Census Bureau data, the average value of owner-occupied homes in Texas about $130,000. In the same period when the study was done, the average value of owner-occupied homes in the U.S. as a whole was about $180,000. This indicates that homes in Texas are relatively cheaper than in other states.
Nevertheless, home prices in Texas are on the rise. According to property valuers, the average Texas home value in December 2017 was 12% higher than it was in 2016. Texas Association of Realtors projects that Texas home values will have increased by a further 8%, by January 2018.
Cost of Renting
Renting is a good option for those who are still on the rental side of the rent vs. buy decision. Remarkably, rent costs in Texas are below the average of US rent figures. Our experts confirm that the cost of renting a one-bedroom apartment is about $890 per month, almost $100 below the US average. In addition, the cost of renting a studio is about $1,000, $50 below the US average.
The cost of renting a two-bedroom apartment in Texas averages at $1,160, which is $40 under the national average. Rent for three-bedroom apartments averages at $1,490, about $30 less than the nationwide average
Healthcare
The cost of a preventive primary care visit is consistent across Texas cities. Our experts confirm that the average healthcare price in Dallas is $145. The healthcare cost in Austin is $140, Houston $125 and $120 in San Antonio. The best deal of the cities in the entire State is El Paso where a preventive primary care visit has an average price of $110.
Taxes
The good news is that Texas has no state income tax. This is a huge benefit for employed people. Additionally, the sales tax in the Lone Star State ranges from 6% to 8.5%. Residents are subject to a gas tax of 20 cents per gallon. However, property taxes in Texas are on the higher side similar to many states that do not have an income tax. The average effective property tax rate is 1.90%. Property tax rates in some counties top to 2%.
Living Wage
The minimum wage in Texas is about $8, which is the same as the federal minimum wage. However, according to the MIT Living Wage Calculator, this is not the living wage. In reference to MIT’s calculations, the living wage in Texas is actually about $10.20 about $3 lesser as compared to other states and major cities across the US. For instance, the living wage is a whopping $12.75 in New York!
Utilities
When it comes to utilities, there are varying costs across the state. Part of the state has a deregulated market for utilities while other places, including Austin and San Antonio, have utility monopolies. Our findings indicate that customers in deregulated markets pay more for utilities than those in cities with utility monopolies.
However, the deregulated market is getting more affordable and well-informed customers can find affordable deals. According to data from U.S. Energy Information Administration, the average monthly utility bill in Texas was about $140 in 2017. That is about 20% higher than the U.S. average of $112.
Costs of Food
It is true to highlight that the Texas State is famous for a lot of food. According to the MIT Living Wage Calculator, a single adult living in Texas can spend a minimum of $3,000 on food in a year. A family of two adults with two children will spend a minimum of $8,900 on food annually.
Even though food prices are relatively low as compared to other states, the prices vary from city to another. For instance, an adult may use a minimum of $300 per month while is it about $340 and $350 in Dallas and Houston respectively. In the boomtown of Midland, the average cost of food per month is about $330.
