Yahoo Finance See Why These Texas Cities Have the Highest and Lowest Costs of Living So Far in 2024
As the second-largest state by population and land area in the nation, Texas has a little bit of everything, from small towns to major cities. The state’s low cost of living and tax incentives for both residents and corporations have caused a major population boom, with nearly a half-million people moving to the former republic in 2023.
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Whether you are looking in the Pineywoods of Eastern Texas or the Panhandle to the North, you can rest assured that the state won’t disappoint. Unique topography throughout each region and plenty of job opportunities make it a true destination for those looking to relocate. While the state is considered affordable, some areas are undoubtedly more cost-effective than others. The cost of housing can range from well below the national average to nearly double, depending on where you live.
Before you pack your moving boxes for the land where the “stars and stripes are big and bright,” see why these Texas cities have the highest and lowest cost of living so far in 2024.
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Bee Cave, Texas
At the top of the list is Bee Cave, Texas. A small city with a population of only 8,771, this Hill Country gem has the highest cost of living in the state. Housing expenses are the driving force behind this trend. According to Zillow, the average home value in Bee Cave is $924,203. While home prices have been down approximately 2.8% over the past year, many remain unaffordable for middle-class families. Fueling these eye-opening housing prices are mega-mansions located throughout Bee Cave.
While many people love the small-town vibe of the Austin suburb, the cost of living is exorbitant and unlikely to come down drastically, given the limited area in the city. The charming city, which dates back to 1870 and is named for the honeybees that inhabited a nearby limestone cave, has just over a dozen neighborhoods. Many are gated or master-planned communities that come with a hefty price tag.
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Cost of Living Factors
In addition to high housing prices, residents of Bee Cave can also expect to pay slightly higher than the national average for groceries, transportation and healthcare. It costs approximately $66,104 in annual expenses to live in the suburb. You’ll need to budget around $5,732 each year for groceries and $5,944 for healthcare costs. Transportation will cost you another $7,649 annually, around 10% more than the average in the U.S. Utilities are the only bargain in Bee Cave, costing you just under what the average person would pay nationwide.
Lockney, Texas
While Bee Cave may have the highest cost of living in the state, Lockney has the lowest. The town, located in Floyd County, has a population of just 1,720. The small city is about an hour’s drive from Lubbock and dates back to 1889, but was incorporated in 1907. Newly minted residents will love the affordable housing available in the area. Zillow places the current average home value in Lockney at $88,418, down 14.3% over the past year.
Cost of Living Factors
The cost of living in the town is over 32% less than the national average. GOBankingRates research indicates that it would take approximately $25,866 in annual expenses to live in the area. Almost all categories, from housing to transportation, are considerably lower than the nationwide average. You would need around $5,127 for groceries each year and $4,526 in utilities.
Healthcare is the only item where you will likely pay more than the average person in the U.S. It is anticipated that you would need $6,651 on average to cover healthcare costs each year in Lockney. Luckily, you’ll save on transportation, which is over one-third less than the average in America. Plan to budget $4,451 for transportation expenses if you decide to move to the rural community.
Methodology: For this study, GOBankingRates analyzed 6,300 cities across the United States to find the cheapest and most expensive cost of living cities in each state. First GOBankingRates found the cost of living indexes as sourced from Sperlings BestPlaces and using the national average expenditure costs for all residents, as sourced from the Bureau of Labor Statistics Consumer Expenditure Survey, the average expenditure cost can be calculated for each city. The total population was sourced from the US Census American Community Survey, and the livability index was sourced from AreaVibes. All data was collected on and is up to date as of May 21, 2024.
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This article originally appeared on GOBankingRates.com: See Why These Texas Cities Have the Highest and Lowest Costs of Living So Far in 2024
