How Much Does It Actually Cost To Live in Texas in 2026?

Texas is still cheap for what you get — 94 vs 100 national average, or 91.5-93 on the cost of living index. It's one of the only big states where housing is 16% below national average and food is 5% below.

But Texas electricity is the wild card: rates up 40% since 2020.

1. Average Rent in Texas 2026

This is why Texas grows.

• Statewide: Housing 16% lower than average — $1,008/month single, $1,848 family of four. Rent (1-BR) $900-$1,500, varies with city: Austin and Dallas pricier. Accommodation (Rent) $1,000-$1,050 average

• Fair Market Rents FY2026 1-BR: Cheapest county $742, San Antonio $1,177, Houston/Harris County $1,323, Austin $1,562, Dallas $1,648

• Vacancy = deals: As of March 31 2026, vacancy rates hit double digits:

  • Austin 13.5% vacancy, -4.7% YoY rent growth, $1,530 market avg asking rent

  • Houston 12.7% vacancy, -1.2% YoY, $1,374 avg

  • Dallas-Fort Worth close to double national vacancy

• Apartment List median Aug 2026: Austin all-sizes median $1,328, Dallas $1,329 (tie), Houston $1,268, San Antonio $205 below Austin, El Paso $154 below. Texas median rent $1,238-$1,550 1BR/2BR

• One-bedroom annual income needed: McAllen $26,680, San Antonio $38,800, Houston $45,440, Austin $45,720, Dallas-Fort Worth $48,960, Midland $57,000

• City averages 2026:

  • Austin: Average 1BR $1,700, median asking $1,378 July, luxury $1,432, 2BR fair market $1,992. Median sale price $412k ($113k above San Antonio)

  • Dallas: Average 1BR $1,800, median asking $1,463 July, luxury $1,428, 2BR fair market $2,119, median sale $390k

  • Houston: 1BR $1,425 average, median $1,786 (+3.37% YoY), luxury $1,448 (actually more than Dallas/Austin for high-end), 2BR fair market $1,705, median listing $309,200

  • San Antonio: Cheapest big metro — 5.3% below national average by BEA Regional Price Parity, median sale $299,275, 2BR fair market $1,538

  • Frisco: Housing $1,200-$3,600, average $2,000

Buying vs Renting: Austin-Round Rock rent $1,378 vs buy $3,295 — buying is 139% more. Dallas-Fort Worth rent $1,463 vs buy $2,657 — 81.6% more. Renting wins in Texas in 2026.

2. Utilities & Electric Bill in Texas 2026

Texas has its own grid — and its own price spikes.

• Average electric bill 2026: $163.72/month based on 1,096 kWh at 14.94¢/kWh. Other estimates: $179.80/month at 15.69¢/kWh for 1,146 kWh (Jan EIA), $177 average with 1,000-1,500 kWh usage at $0.15/kWh

• 1-Bedroom apartment: $95-$145/month. Hot summers mean AC dominates. Average bundled rate 15.5¢/kWh, 700-1,000 kWh usage

• EIA 2024 statewide: $164/month average household

• Rate history: Average residential rate 11.50¢/kWh in 2020 to 16.11¢/kWh in 2026 — up 40% per ElectricChoice. Average default residential energy rate 5.0¢/kWh (NREL) plus charges = $156.99 total for 1,000 kWh with $5.87 customer charge

• Deregulated market gap: San Antonio CPS Energy $156 for 1,200 kWh vs $197 Texas statewide average — $41/mo or $492/year difference. Austin, Dallas, Houston are deregulated — rates vary by provider, plan, contract length. Statewide average 16.44¢ blended across all plans

• Full utilities: $150-$250/month for electricity, water, gas, internet. Houston utilities $145-$240, Frisco utilities $120-$260 avg $190

• Overall utilities index: 101 vs 100 — basically national average, but AC usage pushes bills high

Texas families paying $2,300 more annually for basic living in 2026: housing +$274/household, gasoline +$553, electricity +$53, grocery bills $972/month in Houston's 18th district

3. Groceries in Texas 2026

• Food expenses 5% below average: $380/month individual, $1,235 family

• Groceries index: 89 vs 100 — 11% cheaper

• Real budgets: Food & Groceries $400-$600, single $300-$500 includes dining out and home cooking. Houston groceries $320-$520 per adult, Frisco groceries $260-$520 avg $370

• Eggs $2.28/dozen Aug 2026 BLS, Gas $3.93 Texas vs $4.48 US (was $2.71 year earlier)

HEB is the cheat code — 20-30% cheaper than national chains. Austin groceries are most expensive in Texas.

4. Total: What Does It Cost To Live in Texas in 2026?

Official averages:

• Single: $3,695 including rent, $2,145 excluding rent

• Couple: $5,121 including rent, $3,571 excluding

• Family of 4: $7,115 including rent, $5,100 excluding

Houston single adult: $2,480-$3,920/month single, $4,850-$7,600 family of 4. 1BR $1,180-$1,750, 2BR $1,500-$2,350, utilities $145-$240, groceries $320-$520, transport $95-$240

Single, Houston / San Antonio (cheap big cities):
Rent $1,268 + Utilities $180 + Groceries $400 + Gas $200 + Insurance $150 = $2,198/mo or $26,376/yr
Fair market cheapest county: $742 rent = $1,700/mo total possible

Single, Austin / Dallas:
Rent $1,500 + Utilities $220 + Groceries $450 + Transport $250 + Healthcare $200 = $2,620/mo or $31,440/yr
Need $45,720-$48,960/year to afford 1BR comfortably in Austin/Dallas

Family of 4, Dallas suburbs (Frisco):
Rent $2,000 + Utilities $250 + Groceries $800 + Transport $500 + Healthcare $600 + Childcare $1,000 = $5,150/mo or $61,800/yr
Living wage for family: $35.77/hr with one child, childcare $9,724/yr, internet & mobile $1,512/yr (MIT Living Wage Calculator Feb 2026)

Comfortable single earner in Texas needs $90,564 salary under 50/30/20 rule: $45,282 necessities, $27,169 discretionary, $18,113 savings.

5. Is Texas Worth It?

Index: Housing 83, Groceries 89, Health 95, Transportation 89, Utilities 101, Services 98 — all below national except utilities.

You save on housing and food, but you pay on property taxes (2.1% average) and electricity in summer — $179/mo at 1,146 kWh vs $156 national. No state income tax offsets it.

Money savers:

1. Choose San Antonio over Austin — same job market, $113k cheaper home, $464 less rent 2BR

2. Fixed-rate electricity plan in winter — lock before summer

3. HEB + Costco — grocery index 89