Between April 2020 and July 2022, more than 880,000 people relocated to Texas. People are attracted to Texas for countless reasons, including a booming job market, a low cost of living, and more affordable housing. Add that to the fact that there are a number of big cities to choose from, low taxes, and the warm weather, and it starts to make sense why Americans are flocking to the Lone Star State.
However, as more people move to Texas, some once-affordable cities are seeing housing prices skyrocket. In fact, the Federal Reserve Bank of Dallas says that rising Texas home prices have outpaced the rest of the country since 2011.
If you’re moving to Texas, you might be wondering where you can still benefit from a low cost of living in an economically growing place.
Are you wondering where the cheapest place to live in Texas is? Let’s take a look at some of the cities where housing and life’s necessities won’t cost you an arm and a leg.
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1. Odessa
Where is the cheapest place to live in Texas? The answer might just be situated in western Texas just an hour from the New Mexico border.
Founded in 1881, Odessa, Texas didn’t really start flourishing until oil was discovered there in the 1920s. Before we jump in, let’s take a look at some of the basics:
- Population: 107,891
- Median household income: $84,817
- Median home sale price: $198,310 as of August 2023
- Cost of living: Less expensive than the average Texas cost of living and the average US cost of living
- Median 2-bedroom apartment rent: $1,160
The city of Odessa has a pretty quiet vibe these days as it is primarily a bedroom community. However, there are a number of different attractions that can keep you busy. In Odessa, you can find an art museum, indoor ice-skating, theaters, department stores, and more.
There are several colleges and universities in the city. That means that it won’t be too hard to find a diner or a watering hole to quench your thirst.
2. Midland
Midland, Texas was also established in 1881. With oil booms and busts over the decades, there have been a lot of ups and downs in this community. However, it continuously ranks as one of the most affordable places to live in Texas as well as one of the best places.
- Population: 128,579
- Median household income: $112,701
- Median home sale price: $282,463 as of August 2023
- Cost of living: More expensive than the average Texas cost of living and cheaper than the average US cost of living
- Median 2-bedroom apartment rent: $1,330
People are motivated to move to Midland because of the reasonable cost of living in the job opportunities in petroleum. It also is a family-friendly city. With a median age of 32, the vibe is relatively young here.
Midland College is also located in the city. This attracts college students in part due to the applied technology degree offered as well as the professional pilot training program.
The most significant opportunities economically are in oil and gas. Big employers also include healthcare, retail, construction, and education.
You might find that you have more disposable income if you move to Midland. People here love sports even though there aren’t any major league teams. There are also a number of cultural stops including the Museum of the Southwest, the Midland Odessa Symphony and Chorale, and the Midland Community Theatre.
3. Amarillo
Amarillo was one of the world’s busiest cattle shipping points in the late 19th century. When natural gas was discovered in 1918, however, that’s when things really took off.
- Population: 201,910
- Median household income: $71,120
- Median home sale price: $195,362
- Cost of living: Less expensive than the average Texas cost of living and the average US cost of living
- Median 2-bedroom apartment rent: $939
There is quite a bit of urban and economic development occurring in Amarillo. There are new multi-use buildings and hotels popping up, along with the development of the entertainment and dining district downtown.
This city has been attracting young professionals and millennials and has a median age of 34. With both a strong job market and a reasonable cost of living, Amarillo is an appealing option for many.
Some of the largest employers around the city are in food processing, energy, manufacturing, and health services. There are also a lot of outdoor recreation opportunities not far from Amarillo, with the Palo Duro Canyon State Park not far away. Many people are drawn to the mix of historic and modern you can find here.
(Are you actually looking to sell your Texas home? Here are the best Cash Home Buyers in Texas)
4. Richmond
Richmond is actually a master-planned community in the Houston-metro area, and one of the most successful ones at that. Located centrally about 30 miles from Houston and 50 miles from the Gulf coast, this is a great spot to get the best of both worlds.
- Population: 13,680
- Median household income: $67,000
- Median home sale price: $387,000
- Cost of living: More expensive than the average Texas cost of living and cheaper than the average US cost of living
- Median 2-bedroom apartment rent: $1,439
Career climbers and millennials are common in Richmond, with the median age falling at 34. There are also a number of colleges nearby, creating a substantial population of students in the area.
As far as big employers go, Richmond is a central stomping ground for a number of major industries because of both roadways and rail lines. Locals can work in government, manufacturing, retail, construction, and healthcare.
It is predicted that job growth in Richmond will grow past the national average in the next decade.
5. Lubbock
Founded in 1876, the railroad that was built soon after its founding brought more activity to Lubbock. The nickname of the city is “Hub City” because it was the educational and economic center of the region.
- Population: 267,000
- Median household income: $71,000
- Median home sale price: $206,000
- Cost of living: Less expensive than the average Texas cost of living and the average US cost of living
- Median 2-bedroom apartment rent: $1,125
The city is a welcoming environment for millennial’s, families, and recent college grads with a median age of 30. As one of the cheapest places in Texas to live, it also has a rising job market. The significant industries in the area include education, agribusiness, health services, food processing, manufacturing, and information technology.
This is also a great place for academic staff and professors as there is a long list of colleges in the area.
(Wondering how to sell your house while you’re still living in it? Take a look at this guide.)
6. College Station
Settled in 1860, College Station now holds Texas A&M University’s main campus. The university is a Land, Sea, and Space Grant institution, with projects that are funded by a number of institutions including NASA.
- Population: 123,238
- Median household income: $73,853
- Median home sale price: $321,503
- Cost of living: Less expensive than the average Texas cost of living and the average US cost of living
- Median 2-bedroom apartment rent: $1,471
The median age of College Station is 23. As you might imagine from this information and from the city’s name, the primary occupants are college students and recent graduates. There are also many millennials and families who enjoy living in College Station because of its college town vibe and new job opportunities.
7. Killeen
Killeen was a vital shipping point for wool, cotton, and grain in the city’s early days. Once Fort Hood was established in Killeen, it quickly became a military town that has a number of supporting service businesses.
- Population: 162,900
- Median household income: $60,435
- Median home sale price: $224,121
- Cost of living: Less expensive than the average Texas cost of living and the average US cost of living
- Median 2-bedroom apartment rent: $650
The median age in Killeen is 29, with young professionals, families, and students living in the area. Newcomers are arriving to Killeen because of the growing job market here. Some of the industries in the Killeen-Temple-Fort Hood area are materials manufacturing, aerospace and aviation, and financial services.
There are opportunities for civilian workers in addition to military personnel here.
8. El Paso
This multicultural western Texas city has a large Hispanic population. Situated right across from Ciudad Juarez along the Rio Grande, El Paso is the largest U.S. city on the border with Mexico.
- Population: 678,049
- Median household income: $64,025
- Median home sale price: $207,506
- Cost of living: Less expensive than the average Texas cost of living and the average US cost of living
- Median 2-bedroom apartment rent: $1,024
If you’re looking for one of the most affordable places to live in Texas and you also want year-round sunny weather, El Paso might be a good choice for you. The median age here is 33, and the city is considered to be family-friendly.
There is a strong job market in El Paso, though the city isn’t growing as fast as some of the other cities in Texas. There are more than 70 Fortune 500 companies that have offices located in El Paso. There are also business opportunities in manufacturing, retail, military, food products, financial services, and logistics.
Since El Paso is located right along the foothills of the Franklin Mountains, this is also a city with a lot of potential for outdoor enthusiasts.
9. Waco
Founded in 1849, Waco was occupied by Native Americans for thousands of years before being settled by European settlers. It is probably best known for being home to Baylor University but it also has a long military history with the 1949 opening of the Waco Army Airfield.
- Population: 142,241
- Median household income: $59,319
- Median home sale price: $217,580
- Cost of living: Less expensive than the average Texas cost of living and the average US cost of living
- Median 2-bedroom apartment rent: $1,304
Many of the locals in Waco live in rental properties or apartments. Newcomers looking for a low cost of living city are attracted to Waco in order to work new jobs, raise families, or attend Baylor University.
The median age here is 29 years old. It is predicted that job growth will rise by more than 38% in the next decade. Some of the most prominent industries in the area are health care, professional and financial services, supply chain management, aerospace and defense, and advanced manufacturing.
10. Temple
Initially founded in 1881 as a railroad town, Temple boomed during the 1920s. Even though Temple is known for its railroad and industry, it’s also known as Texas’ Wildflower Capitol.
- Population: 91,663
- Median household income: $72,953
- Median home sale price: $255,994
- Cost of living: Less expensive than the average Texas cost of living and the average US cost of living
- Median 2-bedroom apartment rent: $1,136
If you’re looking for a balance between city bustle and family-friendly, you might want to look into Temple. The city attracts college students, families, and millennials with a median age of 34.
Temple boasts a relatively low unemployment rate and has diverse employment opportunities.
The cheapest place to live in Texas. Is it time for you to move?
If you’re looking for the cheapest place to live in Texas, you’ll obviously have to make sure that there are job opportunities for you to be able to make a living. That being said, one of the reasons that Texas has been such a popular location is because it offers economic opportunities without east and west coast city prices.
Are you ready to sell your home but don’t want to deal with the headaches of the traditional home selling process? If that’s the case, you might want to consider selling your home to a cash buyer. The process is fast, simple, and hassle-free.
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