Why Are Houses in Texas So Cheap? 5 min read

With the recent boom in construction in Texas, many homeowners are considering the lone star state for their next move. 

Whilst Texas in particular has been subject to high inflation rates, property still remains affordable with Texas being the 14th most affordable state to live in. Within this article we dig into whether Texas is still cheap, and why. 


Texas is the 14th most affordable state in the US. Property is cheap in Texas due to low tax rates, high availability of land and a boom in construction work. The remote areas tend to be the cheapest, whereas Austin is an expensive city to live in. Texas also benefits from strong average salaries and a low cost of living. 

How Much Are Houses in Texas?

The average cost of a house in Texas is about $350,000. 

When buying a house, you have to think about all your different needs. This is because each feature of the house will come at a price. For this reason, the cost of houses varies greatly. 

Whilst much of Texas is affordable, large cities like Austin are expensive.

Some of the features that can affect the cost of a house include. 

Property Size

As we all know, the bigger the house, the more expensive it’ll be. The cost of your house will be directly related to the square footage. This includes both the inside and the outside of the house. 

Square footage is crucial, especially when you have a big family. So, when looking at homes, the size is going to be one of the biggest factors that affect the price.


As any real estate agent will tell you when looking for a home, it’s all about location. Depending on your location, some houses may be more expensive than others.

Different cities list houses at different prices. This is because of supply and demand. If there are many vacant homes in an area, it’s more likely that the houses will be more affordable. That’s why crowded cities, like capitals, will usually have the most expensive houses.

Another reason why house prices may vary is how close the house is to services. In an area that’s filled with restaurants and grocery stores, houses tend to be more expensive.

Are Houses in Texas Getting More Expensive?

With inflation, the prices of most products are constantly going up. This is no different when it comes to houses. Yet, inflation isn’t the only factor affecting house prices.

The property market is all about supply and demand. Since we’re building fewer and fewer homes annually, the supply is decreasing. However, demand is always on the rise. This creates a deficiency in the market that can cause prices to go up.

In addition, low mortgage rates in Texas mean that more and more people are moving to the Lone Star State. So lately, the prices of homes have been getting more expensive. The increase in house prices in Texas is more than the average for the USA.

Is All of Texas Cheap? 

While Texas is one of the most affordable states in the USA, many of its cities can be expensive. Not all Texas states are equal. 

Some have a living cost that’s much lower than the national average. However, Texas also has many cities that are more expensive than the national average.

For example, one of the most expensive cities in Texas is Austin. Austin is probably one of the most well-known cities in the Lone Star State. This is because of how advanced the city is.

Austin is a cultural center in the state of Texas. For this reason, it draws many young professionals to the area. Yet, because of this attention, the cost of living in Austin is higher than the national average. This includes houses and living expenses.

Many other cities in Texas fit the same pattern as Austin. However‌, most cities in Texas ‌have lower living expenses than the national average.

Is It Cheap to Live in Texas? 

The living expenses in Texas vary from city to city. Some cities are significantly more expensive than others. Still, overall, Texas is the 14th most affordable state in the USA.

This is mainly due to rental rates in the state. On average, a property will cost much less in Texas than in the rest of the country.

However, property prices aren’t the only deciding factor. Many other factors go into your living cost. Some of these factors can include:

  • Groceries
  • Transportation
  • Health care
  • Utilities

Grocery prices are the biggest variable when it comes to living costs. Not only does it depend on each person’s preferences, but grocery prices also change from city to city. This makes pinning down an exact figure for groceries very difficult. Still, grocery prices in Texas seem to be below the national average for groceries.

The same thing applies to transportation. Most transportation is much more affordable in Texas than in many other states. Still, that’s not always the case. In addition, Texas is a driving state, but it’s nice to have the option of affordable transportation.

When it comes to health care and utilities, prices vary a lot. Depending on the area you’re in and how often you use those services, the cost will change. 

How Much Is Property Tax in Texas? 

One of the best things about Texas is its property taxes. That’s because Texas has no state property tax.

When you’re looking for houses in Texas, the price listed is the actual price. Local county assessors will appraise properties at full market value.

However, there are some exceptions to this rule. Local governments in Texas can decide on taxes in their jurisdiction, like Austin. So, depending on what area you live in, property taxes may be a little different.

What Type of House Is the Cheapest in Texas? 

There is no specific type of house that is more affordable than others. The price of a house will depend on many factors. For example, the materials used to construct the house.

The most affordable way to get a house in Texas is to build it yourself. That may seem like it would cost more, but buying property and building on top is cheaper than buying a house.

Whilst building a house is cheaper, it also requires far more management and is riskier.

To build a house would cost an average of about $90 to $130 per square foot. While for a built house, the average price per square foot is about $150 to $170. This may not seem like a huge difference, but the bigger the house, the more this will affect the final price.

However, a major issue with building your own house is time. It can take months, if not years, to finish construction on a house.

If you’re on a budget and in a hurry, you could always try a rental. It’s not the best solution, but it can help in a pinch.

What Is the Cheapest House in Texas? 

When it comes to house prices, Mesquite has some of the most affordable options. Mesquite is a diverse hub that’s located next to Dallas. However, Mesquite and Dallas have very different house prices.

Mesquite actually has the most affordable houses in Texas. On average, a house in Mesquite can cost about $280,000. That’s about $65,000 less than the average for Texas, which is already less than the national average.

The main issue with Mesquite is that it’s a little remote. Still, if you’re looking for the most affordable house, you’re more likely to find it on the outskirts of a city.

What Is the Average Income in Texas? 

The average annual income in Texas is about $56,535, which translates to $27 an hour. However, this number changes greatly depending on your location and profession.

For example, let’s look at Austin, one of the most expensive cities. The average annual salary is about $70,000, which sounds like a huge number. However, if you take into account that the average living cost in Austin is over $90,000, you’ll see the problem. 

Most places in Texas will have a decent annual income. The balancing act comes in when you factor in your living expenses. This is crucial if you have a large family.

Are Houses in Texas Good Quality?

Many people think that because houses are more affordable in Texas, they aren’t of good quality. However, that couldn’t be further from the truth. Houses in Texas are usually more affordable because of the land.

A large portion of Texas has a desert climate. This makes the land less suitable for agriculture. So, the only other use for the land is to build properties.

The construction of houses in Texas is similar to the construction of houses in all other states. We start the house by digging out the foundation, and on top, we put up a wooden frame. Then we fill in the frame with plaster for the walls.

This construction is fairly sturdy and can last a long time. So, the quality of the house usually has nothing to do with the state. It’s more to do with who built the house and what materials they use.

Wrapping Up

If you’re wondering why are houses in Texas so cheap, you have to consider a few factors. The main factor is the amount of suitable land in Texas. There is plenty of room for people to expand, which means that there’s always a supply of new homes.

Other factors can include the size of the house and the location you decide to settle down in.

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Hi, I'm Ed, and I run BuildFanatic! I enjoy providing the best possible information on a range of home improvement topics.

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