Top 10 Affordable Places to Live in Texas in 2025

Texas remains an attractive destination in 2025 with no state income tax and average housing prices below national levels. With living costs 7% below the national average, you can enjoy affordable living without sacrificing your lifestyle in the Lone Star State.

Moreover, the top 10 most affordable places in Texas have home prices 17% lower than the national average. Let's explore them and find out which one is best for you.

Texas is a top choice for affordable living due to these key factors.

• No State Income Tax: Texas is one of the few states that do not impose a state income tax. This means you get to keep more of your earnings. This lowers your cost of living compared to states with high-income taxes.
• Affordable Housing Market: Texas has many homes at competitive prices. The median home price is $343,700, but you can buy larger homes for less money.
• Robust Job Market: Texas has a thriving economy with tech, healthcare, and energy growth. This leads to new job opportunities, low unemployment, and a good quality of life.

Below are the affordable places to live in Texas in 2025:

Wichita Falls has a 10% lower cost of living than the national average and affordable housing. This makes it one of the most affordable cities in Texas.

Moreover, the city’s economy thrives on healthcare, manufacturing, and retail. Sheppard Air Force Base is a key employer.

Baytown is known for its petrochemical industry, with major employers like ExxonMobil and Chevron. It offers affordable living, with housing prices 42% below the national average.

Besides this, the city has a mix of outdoor activities at the Baytown Nature Center and Cedar Bayou. Baytown also provides easy access to Houston's amenities and the Gulf Coast.

Brownsville provides a low-cost lifestyle with home prices 30% less than the national average. Its location near South Padre Island allows for outdoor activities and a rich cultural heritage.

The area is also home to major employers, including the Port of Brownsville. In addition, major attractions include the Gladys Porter Zoo and the Brownsville Historical Museum. All this makes Brownsville one of the most affordable places to live in Texas.

Lubbock, known as the "Hub City," is home to Texas Tech University and major employers like the healthcare sector. Moreover, it has affordable home prices, with living costs 8% below the national average.

The city’s cultural scene, including museums and live music, adds a unique appeal.

With a low 3.8% unemployment rate, San Angelo has a strong job market. Major employers from San Angelo include Goodfellow Air Force Base and local healthcare services.

San Angelo has a rich art scene and historic downtown. Plus, San Angelo has attractions like the Concho River Walk and San Angelo State Park.

Abilene offers affordable living, with housing costs 18% lower than the national average. This makes it one of the cheapest places to live in Texas for families.

The city also has a fast-growing economy with major employers like Dyess Air Force Base and the healthcare sector. Besides, the Abilene Zoo and outdoor activities at Lake Fort Phantom are popular spots.

Killeen is home to Fort Hood, the largest military base in the US, the city thrives in defense, retail, and education sectors. The cost of living is 9% below the national average.

Additionally, nearby attractions, like Belton Lake and the Killeen Arts & Activities Center, enhance its appeal.

Pasadena has living expenses 10% lower than the national average. Besides this, the economy thrives on the oil and gas industry, with major employers including ExxonMobil and the Port of Houston.

The city's appeal is also boosted by outdoor activities such as hiking at Armand Bayou Nature Center and its proximity to Houston's amenities.

Healthcare in Waco costs 8% less than the national average. It is also home to Baylor University and has attractions such as Magnolia Market and Cameron Park.

Moreover, the healthcare and education sectors are major employers. The proximity to outdoor activities, including the Brazos River, adds to Waco's appeal for families and nature lovers.

Midland, known for its thriving oil industry, has affordable housing and a cost of living that's 4% lower. The area's major employers include oil companies and Midland Memorial Hospital.

Midland also has the Permian Basin Petroleum Museum and nearby parks. They offer a mix of industry, culture, and outdoor recreation.

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Renting and buying in Texas each have their benefits. They depend on location, finances, and personal goals.

• Flexibility: Renting allows for easier relocation. This is ideal for those in urban areas like Austin or Dallas, where housing markets fluctuate rapidly.
• Lower upfront costs: Renters face lower initial costs compared to buyers, who must cover down payments and closing costs.
• No maintenance: Landlords manage repairs and taxes, which reduce your financial and time burdens.

• Equity Building: Homeownership can be a good long-term investment, as property values tend to rise, building equity over time. Furthermore, owning a home can also provide you with a sense of security and permanence. This can be invaluable for families and individuals alike.

• Tax Benefits: Homeowners can benefit from tax deductions on mortgage interest and property taxes, which average about 1.60% in Texas.
• Stability: Buying gives a sense of stability. This is useful in smaller towns where property values may appreciate steadily.

Ultimately, renters may thrive in bustling cities, while buyers might find more value in less populated areas.

To find the perfect, affordable place in Texas, start by researching local housing markets. Consider the cost of living, job opportunities, and your lifestyle preferences.

Use trusted online resources like reAlpha to explore homes. You can also visit cities to get a feel for the area. Prioritize your needs, whether it’s proximity to work, schools, or outdoor activities.

Wichita Falls is often considered one of the most affordable cities in Texas, with a cost of living 10% less than the national average.

Use online real estate sites like reAlpha. Check local listings. Explore neighborhoods outside major cities for better housing deals.

Killen has the cheapest rent in Texas, with an average monthly rent of $843. The living costs are 9% below the national average.

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Discover how our all-in-one homebuying platform can increase your buying power and put money back in your pocket. Start your journey today!

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