Why Are Houses In Texas Cheap? (Explained)

By - Ron Singh

Updated -

You’re probably looking for a changing environment in a different state that will provide affordable housing.

Maybe it’s because of your job or school, but you have a list of options, and Texas is among them.

Maybe you’ve heard from someone that houses in Texas are cheap, and the cost of living is better than in other places in the United States.

Texas is an affordable state to live in with good resources. But, perhaps you have begun to wonder why the houses in Texas are cheap.

In this article, we’ll discuss the low cost of housing in Texas and why it is so low.

Houses in Texas are cheap primarily because of the state’s availability of cheap buildable land. The state also boasts a low tax rate, availability of building materials, strong economy, and cheap cost of living.

Are Houses Cheaper In Texas?

Why Are Houses In Texas Cheap

Yes! Houses are cheaper in Texas. As a result, residents of Texas can afford to own or rent their houses.

Compared to other places, the market price of housing in Texas is meager. This low cost of housing is because of certain factors.

Firstly, the availability of vacant buildable land in the state. Texas is the second largest state in the US. It covers 268,597 square miles.

So it’s almost as if the state has an endless land supply. Furthermore, you can purchase land at a very affordable price.

Another essential reason houses are cheaper is the availability of building supplies. For example, Texas has a large amount of gravel and sand, which makes concrete cheap.

Although therefore, you can purchase building materials cheaply, and the price of houses is low. 

Property taxes in Texas are so enticing that many businesses are moving there. Paying low property taxes saves a lot of money and keeps housing prices low.

In addition, there’s no state income tax to be paid in Texas, which works well for many people.

Other states have strict building codes, whereas Texas doesn’t impose these strictly. Instead, they have relaxed building codes and restrictions.

As a result, it’s easy to get a building permit and build faster, which makes houses cheaper. 

With its exportation and foreign investments, Texas is economically strong. The economic stability in the state has given room for low-cost housing.

With more companies moving to Texas lured by the low property tax, there’s bound to be more economic growth.

Generally, the cost of living in Texas is considerably low. Rent, healthcare, grocery, and other consumer prices are relatively low. The low cost of living is a factor that promotes cheap housing in Texas.

Why Are Houses Cheaper In Texas Than California?

Most states in the US, such as California, have high housing prices. Texas, on the other hand, has affordable housing prices.

So most people wonder why there’s a difference in housing prices in the two states. Certain factors are responsible for this difference in the price of houses in California and Texas.

Here is a comparison table for price differences in Texas and California housing sectors:

Income SourceTexas California
Personal Income TaxThere is no payment of income tax in the state, just sales tax.Residents and non-residents pay income tax.
Building Permit Easier to get Delay in getting a permit
EconomyFast rate of economic development and growth A strong and vibrant economy
LandExcess of land available for low prices for rent and saleLand prices are relatively higher than in Texas. Due to the mountains, there are many undevelopable lands
Cost of livingThe low rate of things makes the cost of living lowThe cost of living is higher than in Texas
Building materialsThe availability of sand and gravel makes building supplies affordableThe cost of building supplies is higher 
Building codes and restrictionsFewer building codes and restrictions make construction fasterImposed building codes and restrictions
RentLow rent priceThe cost of rent is high
Living wageHigh wagesLesser living wage than Texas
Housing priceThe overall cost of houses is lowHouse prices are higher than the national average

These two states are different in many ways, such as the climate, safety, availability of resources, and other factors.

Texas is a relatively cheaper place to stay. Your final decision depends on whichever place suits your job and personal preference.

Why Are Houses In McAllen, Texas So Cheap? 

As you know, Texas is a big state consisting of different cities. Each city has its housing system, and the general cost varies in each state.

McAllen is one of such places in Texas that has relatively cheap houses. McAllen is allegedly the cheapest place to live in the US.

The city has access to many amenities, the top being education. There are various public educational facilities such as libraries, museums, and the University of Texas-Rio Grande Valley in McAllen.

This availability of educational facilities in the region is its most significant advantage. The cost of houses in McAllen is low, with rent prices being very affordable.

In addition, in McAllen, you spend significantly less on healthcare, food, and transportation services. The low living cost is primarily due to the city’s excess retail outlets.

McAllen is the third highest city in job opportunities. Many big companies are moving to Texas due to the low property tax, creating an abundance of jobs.

It’s also great for starting up new jobs. In addition, the attraction sites in McAllen bring tourists, which boosts the city’s economy. 

Why Are Houses In Waco, Texas So Cheap?

Texas is full of beautiful cities with affordable living expenses. Waco is a city with affordable housing, and the cost of living is 27% below the national average. Houses in Waco are inexpensive because of specific factors.

Firstly, Waco’s location in the central part of the state is its most significant advantage. It has many schools and other public facilities that lower the cost of living.

Rental property investors have ranked Waco and McAllen among the US’s top 20 emerging housing markets

The abundance of available jobs in Waco has added to its economy and population. Waco has a booming economy with a growing job market.

The affordable property tax has made Elon Musk start plans to build a second SpaceX facility there.¬†Waco’s real estate and renters market has seen considerable growth in the past few years.

Waco boasts an easy commute system and low cost of living with a list of other advantages. House affordability is a significant gain if you move to Waco, Texas. 

Why Are Houses In Houston, Texas So Cheap?

Generally, houses in Texas are very affordable, and Houston is no exception. Housing cost in Houston is cost-effective and adds to a good quality of life.

Houston’s average cost of living is below the Texas and US national average. In addition, there are still available land spaces and vacant neighborhoods.

The high rate of immigration has made Houston the fourth most populous city in the US and the largest city in Texas.

This population growth is a massive contribution to its booming economy. Additionally, the city’s tourist sites increase its real estate value and economy.

Purchase of a house is cheap in Houston; the maintenance is what gets costly in the long run. Houston is a beautiful and healthy place to own a house despite the maintenance cost.

It is a place with diverse cultures, retail trade jobs, good business prospects, international trade, outstanding health, and other facilities. Even Amazon has seized the opportunity to build its facility there.

Houston is the top job creation market in the United States. It’s also considered the best place for real estate investment.

As a result, investment properties in Houston are in abundance for grabs. As a result, the economy is more vibrant and likely to grow faster as time goes on. 

How Much Does It Cost To Buy A House In Texas?

Despite Texas’s high real estate prospects, getting a house won’t break your bank account.

With the high availability of cheap vacant land, low tax, available building materials, and relaxed building codes, getting a house is affordable.

In addition, different cities have their housing rates, so you can choose the one that suits you.

A house in Texas costs around $247,210- $308,628, which is lower than the US national average. This price varies based on the city and neighborhood you desire to live in.

It’s best to check the real estate market and contact their agents to get the set price for any house. There are different ways of payment, so you pick whichever you prefer. 


No need to wonder if buying a house in Texas is a good idea. You’ll save more than purchasing a house in any other state.

Texas is safe to live in, with many other good facilities to consider. With the abundance of jobs and booming economy, you’ll surely be making a good decision to relocate there.

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