The Most Affordable Place To Live In Texas In 2025

Everything is big in Texas — except the price tags in these towns. With housing affordability slipping out of reach in much of the country, Texas remains a rare stronghold of budget-friendly living. Thanks to no state income tax and an abundance of smaller cities, many Texans enjoy a low cost of living without sacrificing comfort.

Cities like Brownsville, McAllen, Wichita Falls, and Abilene offer costs of living 20 to 25 percent below the national average, with median home prices often under $200,000. For instance, Brownsville touts low utility bills and a median home price of around $187,000. Amarillo offers even steeper savings, with average home prices near $150,000, in addition to some of the lowest rents in the state.

But price isn't everything. The true valuation of these places depends much on your needs. The best affordable city or town depends on your lifestyle and will differ based on whether you're raising a family, launching a career, or easing into retirement. If you're unsure how to compare your options, exploring how to identify the locale that perfectly aligns with your needs and aspirations is a great place to start. And if minimalism appeals to you, Texas also ranks among the best states for tiny-house living. If you're considering downsizing, here are some essential things to weigh before making the leap.

For remote workers seeking relief from Austin (often considered the most livable city in Texas, but comes with high housing costs) or Dallas's rising costs, Lubbock presents an attractive alternative. Home to Texas Tech University, this mid-sized city in West Texas has strong internet infrastructure, a lively café scene, and a cost of living 19 percent below the national average. One-bedroom apartments rent for around $750, offering the perks of a college town without the big-city price tag.

Families might prefer Abilene, where the median home cost is just under $200,000, and property taxes align closely with the state average. With accessible schools, ample parks, and short commutes, life is simpler for parents. Nearby Waco also offers affordable homes, a revitalized downtown, and proximity to larger job markets like Dallas and Fort Worth to the north and Austin to the south.

For retirees, Port Arthur and McAllen provide warm weather, affordable healthcare, and homes priced well below the national median. Your fixed income stretches further here, whether you're interested in condos or 55-plus communities.

Recent graduates should consider El Paso: it's affordable, with a cost of living about 12 to 18 percent below the US average, yet large enough to offer diverse job opportunities and plenty of low-cost entertainment, especially for those fond of going south of the border. One-bedroom apartments rent around $900, and key industries include education, healthcare, and logistics. If you're looking for a bigger job market, Arlington, positioned between Dallas and Fort Worth, offers access to major employers along with slightly lower living costs.

Single parents on a budget might find Wichita Falls a good choice. Rent for a two-bedroom averages less than $850, and median home prices sit around $170,000. The city also offers numerous free and affordable amenities, such as playgrounds, splash pads, and youth programs. The city's smaller size and strong community support can significantly benefit single-income households.

Ultimately, the Lone Star State is home to a variety of cities that balance affordability, opportunity, and quality of life. While there's no single best city in Texas to live in, there are plenty that might be right for you depending on your goals. By considering your unique priorities and lifestyle needs, you'll be on your way to figuring out what city is best for you.