Frequently Asked Questions
How is the cost of living index calculated?
The cost of living index uses 100 as the national average baseline. A score of 110 means that category costs 10% more than the national average, while a score of 90 means it costs 10% less. Our data combines housing costs, grocery prices, transportation expenses, utility rates, and healthcare costs to provide a comprehensive comparison between Texas cities.
Why is Austin more expensive than other Texas cities?
Austin has experienced rapid population and job growth, driven by the tech industry and major employers like Tesla, Apple, Google, and Meta. This demand has pushed housing prices significantly above other Texas metros. However, Austin still remains more affordable than comparable tech hubs like San Francisco, Seattle, and New York. Groceries, transportation, and healthcare remain near or below national averages.
Which Texas city has the lowest cost of living?
Among the major Texas metros, San Antonio consistently ranks as the most affordable. Housing costs are well below the national average, and groceries, healthcare, and transportation are all cheaper than most U.S. cities. San Antonio offers a strong quality of life with a lower financial burden, making it popular with families, retirees, and first-time homebuyers.
How do Texas property taxes affect cost of living?
Texas has no state income tax but compensates with relatively high property tax rates averaging 1.8% to 2.3% of assessed value. This means housing costs in Texas include a significant property tax component. However, most residents still come out ahead financially compared to high-income-tax states. Homestead exemptions and property tax protests can help reduce your annual tax bill.
Is Houston really cheaper than Dallas?
Yes, Houston generally has a lower cost of living than Dallas, primarily due to more affordable housing. Houston benefits from a larger land area and less restrictive zoning, which keeps housing supply higher and prices lower. However, Houston has slightly higher transportation and utility costs due to its larger geographic spread and hot, humid climate requiring more air conditioning.