Is Texas still a cheap place to live? Here’s how affordable it is based on 2023 data
Texas is the second-most populated state in the United States with a population of over 30 million.
Between 2000 to 2022, Texas gained 9,085,073 residents which was more than any other state, according to the U.S. Census Bureau.
No state income tax, a booming job market and affordable cost of living are some of the common reasons why people are moving to the Lone Star State, according to real estate company Redfin.
However, data from the Missouri Economic Research and Information Center shows Texas is not among the states with the lowest cost of living.
Places with lowest cost of living in 2023
These are the five states with the lowest cost of living according to MERIC data:
5. Alabama
4. Missouri
3. Kansas
2. Oklahoma
1. Mississippi
Is Texas a cheap place to live?
Overall cost of living in Texas ranks the state as more affordable than most in the U.S.
Despite its popularity among people looking to relocate, Texas is not in the top ten states with an overall low cost of living. Certain expenses in the state, like utilities and health care costs, scored higher than other states with an overall high cost of living.
Texas ranked 17 in states with lowest cost of living, according to composite cost of living index data for the first quarter of 2023. Its overall cost of living index was 93 — the lowest was Mississippi at 85.3 and the highest was Hawaii at 179.
Here is a breakdown of the how certain expenses scored in Texas. The cost of living index scale ranged from 96.6 or less to 134.5 or more.
- Groceries: 94.8
- Housing: 84.2
- Utilities: 105.7
- Transportation: 92.6
- Health: 94.1
