Moving is never easy, there are so many factors that play a massive role in choosing the perfect place to call home. Texas is the second largest state in The United States taking up almost 300,000 square miles of land, and with its wide-ranging mass and diverse culture, each corner varies significantly.
Texas has a 7% lower cost of living than the national average, which might not seem like a huge difference but allows Texas to fall in the top 15 of the cheapest states to live.
What exactly is it that makes Texas so cheap? Aside from the great economy, Texas can offer many more factors that allow it to offer such cheap living for its residents. Keep reading to find out why Texas earned this number 12 spot in the “top 15 cheapest places to live”
Economy
For 10 years in a row Texas has ranked as the best state for businesses, why is that?
Texas has the 10th largest economy amongst the nations of the world. Texas has an extremely business-friendly industry. They can offer an extremely diverse workforce with the slogan “Made in Texas” pursuing individuals to create businesses.
Texas is in a true revolution for all businesses big and small with no signs of slowing down. This revolutionary movement allows Texas to drastically lower taxes.
Taxes
Texas does not require state income taxes, meaning you get to keep more of the money you’ve worked hard to earn. Because of this many people bring their businesses to Texas.
Elon Musk was able to save 2.5 billion dollars just by relocating his business. The taxes that are required in Texas like property taxes are so minimal at only 1.8%.
What Is The Average Cost Of Living In Texas?
Texas’ average cost of living will vary based on the location of Texas, since it’s such a large state it can be broken down into 5 smaller parts. However, overall the cost of living in Texas is about $2,000 per month.
Broken down it will look like something like this each month:
- Housing with Utilities – $1,400
- Grocery – $300
- Gas – $70
- Misc. – $300
What about specific areas of Texas? Since Texas is so vast each area is extremely diverse from the next. Therefore, it’s important to look at each region of Texas before making any decisions.
North Texas – Amarillo
The average cost of living in this region of Texas is about $1,600 per month.
The breakdown looks something like this:
- Housing with utilities – $1,200
- Grocery – $90
- Gas – $70
- Misc. – $270
Now, let’s see Fort Worth.
East Texas – Fort Worth
The average cost of living in this region of Texas is about $1,700 per month.
The breakdown looks something like this:
- Housing with utilities – $1,200
- Grocery – $100
- Gas – $90
- Misc. – $300
Now, let’s see Laredo.
South Texas – Laredo
The average cost of living in this region of Texas is about $1,500 per month.
The breakdown looks something like this:
- Housing with utilities – $1,100
- Grocery – $90
- Gas – $80
- Misc. – $250
Now, let’s see El Paso.
West Texas – El Paso
The average cost of living in this region of Texas is about $1,500 per month.
The breakdown looks something like this:
- Housing with utilities – $1,300
- Grocery – $100
- Gas – $100
- Misc. – $300
Now, let’s see Austin.
Central Texas – Austin
The average cost of living in this region of Texas is about $1,500 per month.
The breakdown looks something like this:
- Housing with utilities – $1,500
- Grocery – $90
- Gas – $120
- Misc. – $300
Now, let’s see how much it costs to live comfortably in Texas in general.
How Much Does It Cost To Live Comfortably In Texas?
We researched data including everything from housing to healthcare to ensure you will be able to live comfortably in Texas.
The overall cost per year to live in Texas is about $39,661 per year. This may seem like a lot but on average that is only about $3,395 per month per person.
How Has Inflation Affected Texas?
The Cost-of-Living-Adjustment (COLA) is calculated at the beginning of each year. These adjustments not only affect the cost of living but also Railroad Retirement, Social Security benefits, and Disability and Survivors benefits as well.
Texas released a statement on December 7th, 2021 stating that the state would be impacted by inflation. For the year 2022, Texas will be affected by a 5.9% increase.
Conclusion
Texas is a vast state therefore, each region holds its own cost of living hurdles. Some areas are more expensive than others and deciding whether or not Texas is affordable for your family depends on your individual needs and budget. Take a look at each region in Texas to decide which area is right for your family.
The cost of living might seem high one year but each year it is reevaluated and changed based on many contributing factors. When choosing an area to move to, always keep a comfortable budget because things are always changing when it comes to finances.
