Why Are Houses in Texas So Cheap?

Texas is known for a lot of things – big cities, the Lone Star State flag, and amazing Tex-Mex cuisine. But one thing that stands out to many people is its surprisingly low housing prices. From sprawling ranches in rural areas to beachfront condos on the coast, you can find lots of great homes at very reasonable prices in Texas. So why are houses in Texas so cheap? There are several factors that contribute to this phenomenon: favorable tax laws, plentiful land availability and an abundance of employment opportunities. These reasons make it easier for home buyers to get more house for their money than they would elsewhere in the country. Read on to learn more about why houses in Texas are such a bargain!

Reasons Why Are Houses In Texas So Cheap

Reasons Why Are Houses In Texas So Cheap

As many people know, house prices in Texas are quite cheap, there are several reasons for this, let’s look at them.


Texas is one of seven states with no individual income tax, meaning that residents don’t have to pay the government a portion of their earnings. This gives people more money in their pocket to spend on housing, making it easier for them to afford larger or more luxurious homes than they might be able to in other states.

Lots Of Available Lands

Texas is the second largest state in the United States. It offers plenty of land for people to build their houses. The large size of Texas means that it has a wide variety of climates and types of soil, making building affordable homes easier.

Additionally, many parts of Texas have an abundance of undeveloped lands which are available to prospective homeowners. This abundance of available land is a major factor that contributes to the low prices of housing in Texas.

Relaxed Building Codes / Fewer Building Restrictions

Texas has some of the most relaxed, affordable building requirements in the nation. This means that construction costs are much lower than in other parts of the country. Since Texas does not mandate many rules for home building, you can build your own home without having to worry about meeting certain standards or paying expensive fees and taxes. In addition, many of the construction materials and labor used in Texas are much cheaper than elsewhere in the U.S., making it easier to build an affordable home without sacrificing quality or safety. Furthermore, many communities in Texas will allow you to create your own custom-built home that is tailored to fit your needs and budget.

Available Building Supplies

Homes in Texas are often cheaper because the cost of building materials is lower. This allows for builders to construct homes at a much lower cost than other states, resulting in more affordable prices for buyers. Construction projects can be completed faster and with less waste due to the availability of local lumber yards, brick factories, and wholesalers that provide easy access to quality building supplies for Texas home builders. This further contributes to the overall cost savings, allowing housing prices to remain low.

Additionally, due to Texas’ generally fair climate and ample sunshine, there are fewer expenses associated with insulation and roofing materials than in colder climates like the Northeast or Midwest. In addition to available building supplies, Texas also boasts some of the lowest labor costs in the country, further helping to keep housing prices low. All of these factors combine to make Texas one of the cheapest places to buy a home in the United States. [1]

The Pros Of Moving To Texas

The Pros Of Moving To Texas

Moving to Texas offers several advantages when it comes to purchasing a home.

Job Opportunities

One of the main reasons people flock to Texas is because of the job opportunities it offers. The state’s population has exploded in recent years, creating a demand for workers that many other states don’t have. This means that anyone looking for employment can generally find what they need quickly and easily in Texas. There are also plenty of new businesses popping up, which means that those willing to take a risk have the potential to find success in the Lone Star State.

Asset Protection Laws

Texas is known for its asset protection laws, which are some of the strongest in the nation. The homestead exemption allows homeowners to shelter $60,000 worth of equity in their home from creditors and lawsuits. This means that if a homeowner has up to $60,000 of equity in their home, it cannot be taken away by creditors in a bankruptcy or lawsuit. This makes Texas an attractive place to buy a home due to the added security of asset protection laws.

Additionally, Texas has no state income tax and no inheritance tax, which means that not only can homeowners save money while they are alive, but they can also pass on more of their estate to their heirs without taxation.

Family-Friendly Neighborhoods

Texas offers a wide range of family-friendly neighborhoods with plenty of room for children to play and explore. From suburban developments to rural communities, there are plenty of safe places to call home in Texas. These neighborhoods often offer competitively priced housing options that make it easy to purchase or rent a house without breaking the bank. With its low cost of living and tight-knit communities, Texas is an ideal place for families to settle down. With some of the best schools in the nation and plenty of activities for adults and children alike, it’s no wonder that Texans are proud to call this state home. [2]

The Cons Of Moving To Texas

The Cons Of Moving To Texas

Despite the advantages of living in Texas, there are some drawbacks to consider.

Low Access To Healthcare And Quality Health Insurance

Living in Texas can be a challenge if you need access to quality healthcare. The state ranks near the bottom when it comes to access to health insurance, with nearly 5 million people uninsured as of 2018, according to the Kaiser Family Foundation. And while there are many counties with excellent facilities and options for doctor visits, there is an overall lack of health coverage, with some of the highest deductibles for individual plans in the country. If you’re someone who relies on health insurance for medical care, this could be a major downside to living in Texas.

Severe Weather And Climate

Texas is known for its extreme weather. The state experiences high humidity, strong winds, and intense heat during the summer months. This can make living in certain parts of the state quite uncomfortable, especially if your home isn’t properly equipped to handle it all. The climate in Texas also contributes to its risk of severe weather events such as tornadoes, thunderstorms, and hailstorms. Due to its location in the middle of Tornado Alley, Texas residents are more likely to experience these types of events than people living in other parts of the country.

One of the reasons why homes in Texas are generally more affordable than other parts of the country is due to potential risks associated with living there.

High Property Taxes

Property taxes in Texas are some of the highest in the nation. Texas’ abundant government services are made possible by its absence of state income tax, instead relying heavily on property taxes. A massive discrepancy exists between the national average of 0.07% and Texans’ property tax rate, which reached a staggering 2.07%, in 2019 alone. This higher property tax burden can make buying a home in Texas more expensive than elsewhere, leading to lower prices overall.

However, despite the higher taxes, Texas homes still tend to be more affordable than in other states.

Power Grid Failure

A significant factor for why real estate in Texas is so inexpensive is the recurrent power grid issues. The state of Texas has its own electric grid, which is separate from other states and regions across the US. This can be beneficial in some ways, as it allows certain parts of the state to operate and maintain their electricity independently. However, this can also be a detriment, as Texas’ electric grid is not integrated with other states and regions.

This can lead to more frequent power outages, resulting in higher repair costs for homeowners and increased risks of damage from storms and other natural disasters. Furthermore, it is assumed that electricity in Texas charges an estimated 20% more than other states, making Texas residences even cheaper to live in. Consequently, the absence of dependable electricity is one primary factor for why homes in Texas are so affordable. [3]

Is It Worth Living In Texas?

Texas is a widely popular state with many reasons to love it. The cost of living in Texas is relatively low, the weather is generally pleasant, and the state offers great job opportunities. When you contemplate buying a house, why is it that Texas residences are priced so affordably?

Is It Worth Living In Texas

In a nutshell, the affordability of land and cost of living in Texas make it an attractive option for potential homeowners as housing prices remain much lower compared to other states. Because Texas is a large state with plenty of space, there often isn’t as much competition for housing, which keeps prices low.

Furthermore, taxes in Texas are lower than those in most other states, making it more affordable to purchase and maintain a home. [4]


Is buying a house in Texas a good idea?

Investing in a home in Texas can be an excellent choice depending on your lifestyle and preferences. Generally, homes in Texas are much more affordable than many other states in the US, offering low property taxes and no state income tax. Additionally, there is an abundance of job opportunities for those hoping to relocate or start their own business within the state.

Texas offers a more affordable cost of living when compared to other states, making it an ideal place for those hoping to stretch their budget or save money. Ultimately, whether or not buying a house in Texas is a good idea depends on your individual goals and preferences.

Is Texas a cheap state to live in?

Texas offers a cost of living that is typically below the national average, meaning you can maintain your lifestyle at an affordable price. The median value for a home in Texas is $174,500 – considerably lower than the US average of $203,400. A combination of factors have contributed to the lower cost of housing in Texas such as land availability and taxes. Texas is well known for its relatively low taxes, which is one reason why it’s a popular choice for those looking to save on the cost of living.

Additionally, having a larger land area than other states means there are more opportunities to build homes in Texas at a lower cost than in most other states. The affordability of housing in Texas also extends beyond just the initial purchase price of a home, with lower taxes and utility costs providing even more savings for those looking to call Texas their new home.

Why do people buy houses in Texas?

Texas offers a number of advantages to homeowners who want to buy a house. With a comparatively low cost of living, Texas is an attractive option for those looking to purchase their own home. The average cost of housing in Texas is about 15% lower than the national average, making it one of the most affordable states for housing.

Additionally, the state’s mild climate makes it an ideal place for those who want to live in a warmer climate. Texas also provides some of the best job opportunities in the United States, with plenty of companies that are based in the state offering competitive salaries and benefits packages. This means that homeowners will be able to find secure jobs close to home and be able to afford a comfortable lifestyle.

How much income do you need to buy a house in Texas?

The cost of purchasing a home in Texas has been relatively low compared to other states. According to Zillow, the median list price for homes in Texas is $231,780 – almost $100,000 less than the US median list price. The affordability of housing in Texas depends on your income level and the size of your down payment. Generally, you should plan to spend 28% of your gross income on housing costs.

That includes the principal, interest, taxes and insurance for your mortgage. To afford a median-priced home in Texas, you would need an annual salary of at least $75,600–about $8,000 more than the US median household income.

Is Texas enough salary to live in?

Texas has plenty of jobs that pay decent salaries and with a lower cost of living, it’s possible to live comfortably on a smaller salary than in other states. Texas is one of the largest employment hubs in the country, with numerous industries providing job opportunities for residents. Drawing from the Bureau of Labor Statistics, Texans are earning an average annual salary of approximately $51,000.

Is Texas enough salary to live in

This is slightly lower than the national average, but it’s enough to live comfortably in most parts of the state. Additionally, certain metropolitan areas have higher salaries that can be used to afford a better lifestyle. Also, Texas has no state income tax, providing an additional amount of savings for employed individuals.

What city in Texas is safest?

Texas is a large state, with cities of all sizes. Some of the safest places to live in Texas include San Antonio, Austin, Plano, El Paso, and Irving. These cities have low crime rates and access to high-quality amenities such as schools and hospitals. San Antonio ranks highly for safety due to its low violent crime rate, while Austin and Irving have high quality of life ratings.

Plano is a well-off city with plenty of amenities such as shopping, restaurants, and entertainment venues. El Paso is known for its strong sense of community spirit and good public safety records. All these cities offer affordable housing options, making them an attractive option for those looking for a safe place to live in Texas.

Texas is also home to some of the most affordable housing markets in the country, with some cities boasting median house prices that are as much as 50% lower than the national average. This makes it an attractive option for those looking to purchase a home without breaking their budget. Low property taxes and no state income tax also make Texas an attractive option for those looking to save money on their housing costs.

What is a good salary to live in Texas?

Living in Texas can be affordable, but the cost of living varies widely depending on where you live and how much money you make. Generally speaking, a good salary to live comfortably in Texas is $40,000 per year or more.

However, if you want to get by with a lower income while still providing yourself with basic necessities like food and shelter, a salary of around $25,000 should do the trick. Of course, this will depend on where you choose to live and how much you’re able to save.

Besides, the cost of living in Texas has been steadily increasing yearly – it’s critical to remember this and prepare wisely.

Why are people moving to Texas?

Texas is one of the fastest-growing states in the United States. It’s no surprise that people are flocking to Texas for its low cost of living and its robust job market. The unemployment rate in Texas has been steadily declining over the past few years, reaching a record low in 2020 as economic conditions improved across the state. The Lone Star State’s lively culture is another motivating factor behind the mass migration of people to Texas. Texas is a state that offers something for everyone – from its bustling cities like Houston and Austin to its small towns scattered across the countryside. Texas is an attractive destination for many, offering a wealth of outdoor activities and captivating cultural attractions that draw in newcomers each year.

Is Texas a good place to move to?

With its colorful history, vibrant culture, and booming economy—not to mention the affordable housing—Texas is an attractive option for many people looking to move. But why are houses in Texas so cheap? There are several reasons why Texans enjoy such low housing prices. To begin with, the state has no personal income taxes and a business-friendly environment, which makes it appealing to entrepreneurs and investors.

Additionally, Texas has a large supply of land in rural areas, as well as abundant natural resources (including oil and gas). This helps to keep the cost of building materials down. Finally, Texas also offers a variety of housing options—from single family homes to apartments and condos—allowing buyers a wide range of choices when it comes to finding the perfect home.

Can you buy a house in Texas without being a resident?

Yes, you can buy a house in Texas without being a resident. The Lone Star State is open to non-residents and corporations investing in real estate. This is especially advantageous for those looking to buy investment properties or vacation homes in Texas. However, keep in mind that when purchasing from out of state, it will be more expensive than if you were a resident of Texas. You must also comply with the Texas real estate regulations, which can make the process more complex and time-consuming than when buying from within the state. But in general, it is possible to purchase property as a non-resident or corporation.

Useful Video: Why are Houses Cheap in Texas


In conclusion, the combination of low land prices, generous tax incentives for citizens and businesses, and a strong economy make Texas one of the most attractive places to live in the US. The combination of these factors creates an ideal environment in which home prices remain relatively affordable. With its great housing options and affordability, it’s no wonder why so many people choose Texas as their home. Whether you’re looking for a starter home, an investment property, or a luxurious estate, there’s something for everyone in the Lone Star State. With so much to offer, it’s easy to see why Texas is one of the most desirable places to purchase a house.


  1. https://lovehomedesigns.com/why-are-houses-in-texas-so-cheap/
  2. https://texasview.org/why-are-texas-houses-so-cheap/
  3. https://www.buildfanatic.com/houses-texas-cheap/
  4. https://rootstravler.com/why-is-texas-so-cheap/