Living in Texas: A Census-Backed Guide to the Lone Star State

Texas has been the largest single recipient of state-to-state migration in the U.S. for several years, per IRS county-to-county migration data and Census ACS5. The drivers are no state income tax, a deep and diversified labor market (energy, tech, healthcare, logistics, defense, cross-border manufacturing), historically cheap housing, and a population growth rate that has compounded for two decades.

But Texas is enormous — the second largest state by population and area — and the cost, climate, and labor markets vary widely. The Texas you experience in El Paso looks nothing like the Texas you experience in Houston or Plano.

Houston (greater Houston, ~7.5M) is the largest, anchored by energy, the Texas Medical Center (the largest in the world), and the Port of Houston. Median home value sits in the high $200,000s metro-wide; the inner-loop ZIPs run much higher.

Dallas-Fort Worth (~8M) is the largest by metro population and the most diversified labor market in Texas. The Collin County and Denton County outer ring (Frisco, Plano, McKinney, Prosper, Celina) holds the densest concentration of fast-growing, high-income suburbs in the country.

San Antonio (~2.5M) is the cheapest of the big four and the most family-affordable, anchored by Joint Base San Antonio, USAA, and a deep tourism economy.

Austin (~2.4M) is the most-discussed and now the most expensive — see the dedicated Austin cost-of-living guide for the full picture.

Texas's no-state-income-tax pitch comes paired with property tax effective rates among the highest in the country — typically 1.7–2.2% of assessed value, per Texas Comptroller and county appraisal district data. On a $400,000 home that's $7,000–$9,000/year before any homestead exemption.

For renters and high earners, the income tax savings outweigh the property tax. For middle-income homeowners with paid-off mortgages, the math gets less favorable than the headline suggests. Always model both lines when comparing Texas to other states.

South Texas (the Rio Grande Valley — Brownsville, McAllen, Harlingen, Laredo) and West Texas (El Paso, Abilene, Wichita Falls) post the lowest housing costs of any meaningful Texas labor markets. Median home values in South Texas sit in the $115,000–$160,000 band, and rent in the high $800s to low $1,000s.

These markets aren't for everyone — they're hot, geographically remote from the rest of Texas, and the labor markets are more concentrated than the big four metros. But for budget-driven moves they remain unmatched in any growing Sun Belt state.

Use the Texas state page to filter by cost of living, income, and education. Drill into specific metros with the city pages. Use the compare tool to put two Texas ZIPs side by side. And before buying, always model the property tax bill on the specific property — Texas property tax is high but heavily moderated by homestead exemptions for owner-occupiers.