houses in Dallas TX

It’s no longer news that tons of people have been moving to Texas over the years for one simple reason. Houses in the state are surprisingly affordable. 

So, if being a property owner in the United States is a dream, moving to Texas should push you a step closer to that dream. Why? A house in Texas might cost almost half the price of the same house in California and several states. 

So, whether you’re renting or buying a house, you won’t empty your bank account if you’re buying in Texas, compared to most states. 

Now, the crucial question many might be asking right now is this.  

Why are houses so cheap in Texas?

Houses are cheap in Texas, the Lone Star State, for several reasons. One is that the state has a large amount of buildable lands. 

Elsewhere, land costs so much. It also takes a huge chunk of the cost of a building. But that’s not the case when you’re building a house in Texas, as land is so cheap there. 

Another factor that makes houses so cheap is the cost of living. It’s having a massive influence on housing costs and other things in the state. 

Another reason we think houses are cheaper in Texas is that homes in other states are overpriced. 

But let’s be honest. Things have slightly changed in the state now. Houses in some are now cost a fortune. 

So, now you know why houses are cheap in Texas. Keep reading to learn more about the state. 

Why Makes Texas So Affordable?

Texas Realtors’ 2021 Relocation Report indicates that the state is gradually tilting towards a population explosion. Since the 2010 census, over 4.6 million people have permanently moved into Texas. 

Everyone is aware that Texans don’t pay income tax. But their property tax is quite expensive. Still, people are trooping into the state daily. Why so? It’s partly because renting, buying, or building a home isn’t that expensive. 

Another good thing that’s happening in Texas is that companies are also trooping in. It’s gradually become a state worth relocating to. 

Now, let’s share some reasons Texas is more affordable than California, New York, and several other states.  

#1: Rent is cheap: 

If you’re looking to rent a house on a budget to save money for major projects, you might find Texas more appealing than California.   

Why so? House renting is cheaper in Texas than in California, including in several states.  

A figure provided by the Massachusetts Institute of Technology (MIT) in 2019 showed that California’s cost of housing is 69.6 percent bigger than Texas’.

#2: No personal income tax:

Texas constitution forbids payment of income tax. Instead, they rely on the use and high sales tax. 

In California, everyone pays income taxes. It doesn’t matter if you’re a permanent resident or non-resident. As long as you’re in the state, you have to pay your taxes. 

Non-residents pay taxes on their taxable income obtained from California sources.  

California also has the highest taxes in the country. And these taxes are imposed by both the local and state governments.   

California’s income tax ranges from 1 to 12.3 percent, while its sales tax ranges from 7.25 to 10.25 percent. 

#3: Building permit is easier and faster to get: 

In a 2020 building permit survey, Texas had the most housing permit issued in the country. They issued 230,503, while California only issued 106,075 permits. 

The figure in Texas shows how easy and quick it is to obtain a building permit in the state, compared to other states.  

So, if you’re planning to get your building project in Texas going, a building permit won’t be a stumbling block. 

#4: Robust economy and massive population growth: 

Texas has been the world’s 10th biggest economy since 2015. They’re ahead of South Korea, Canada but behind Brazil.  

By GDP, Texas’ economy happens to be the second-biggest in the United States of America. Occupying the first position is California.   

However, economic development in Texas indicates it’s only a matter of time before they occupy the first position. 

Over 50 companies headquartered in Texas got featured in the Fortune Magazine 2020 ranking. The ranking involved enterprises that had the 500 largest fiscal year revenue across the United States of America. 

#5: Tons of buildable land: 

Texas isn’t a large state on paper, with plenty of buildable lands to spare. So, finding a piece of undeveloped land to buy or rent won’t be an issue there. Besides, lands are relatively affordable. So, you can buy a massive amount of land for future use. 

Texas is the second-largest state in the United States of America. But more importantly, they boast more privately owned land there than any other state. 

Let’s put it this way. A whopping 95 percent of the land in Texas is privately owned. The state, federal, and local governments own only 5 percent of the land there. 

A Handy Tip: Texas is so large that 5 percent is a massive amount of land. It’s approximately 8.5 million acres. So, the 5 percent publicly owned land is much bigger than Delaware, Connecticut and Rhode Island put together.   

#6: Cost of living is lower than in most states

The cost of living in Texas is eye-popping. It’s 8 percent below the national average. 

In general, the state’s cost of living is considered low because of the low rent prices, grocery prices, and even consumer prices. All these are approximately much lower in Houston than they are in most cities across the United States.  

Is Moving To Texas A Wise Decision?

Let’s face it. Everything about Texas looks good on paper. The state has an impressive amount of undeveloped land. The cost of living is also relatively low.  

But make no mistake. Housing and the cost of living in most cities could be expensive. Many people who have houses or lands to sell may decide to overprice them.

So, before you start packing your things in preparation to leave for Texas, ask yourself these questions. Can I afford the life I want to live in my dream city in Texas?  

How can you determine if moving to Texas is the right move for you? One simple way is to make some comparisons. 

Compare the cost of living in your current city of residence to your dream city in Texas. If the one in Texas is lower, you can start packing your things to move in there. If the reverse is the case, you have to rethink your decision.  

A Handy Tip: A simple way to know the actual cost of living is to figure out the cost of housing, bills, food, healthcare, and more. 

The next and most important thing you may want to consider is the weather. But if you’re somewhere who can survive anywhere, you don’t need to spend time on this. 

If you care about the weather, ensure you acquaint yourself with the weather in Texas. Keep in mind that it can get considerably hot and humid in summers.

On the other hand, winter periods are sometimes short, dry, cold, and windy.   

 Additionally, the temperature in Texas is around 36 degrees Fahrenheit to 96 degrees Fahrenheit. And it’s rarely under 24 degrees Fahrenheit or above 102 degrees Fahrenheit. 


So, why are houses so cheap in Texas? Diverse reasons are responsible for this. Firstly, it boasts many undeveloped lands. And lands are relatively affordable in the state. 

Generally, the cost of living in Texas is lower than the national average. And with myriads of top companies planning to move their base to Texas, there’s no better time to build a home in Texas than now.