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Why Are Houses in Texas so Cheap? 9 Reasons!

Austin, Texas skyline during daytime

If you’ve looked at homes in different states, you’ve probably noticed that Texas is one of the cheapest states to purchase property. Compared to other states nearby, it is incredibly inexpensive. You may be wondering why the land in Texas is so much cheaper than it is in other areas and why the cost of living is generally lower overall.

There are several reasons homes and land are so cheap compared to states like California. Homes in Texas may not be the cheapest in the nation, but they’re more affordable than most states.

In this article, we’ll look at some of the reasons why homes in Texas are so inexpensive.

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Why Are Houses in Texas so Cheap? 9 Reasons!

1. Land is Cheaper

Compared to other states, the land is much cheaper in Texas. Therefore, homes tend to be cheaper as well. After all, when you purchase a home, you are also using the money to purchase the land that the home sits on.

Texas has a lot of free land compared to other states. It was developed relatively late, which means that much of the land has not been divided up as much. Plus, Texas is larger than most states. After Alaska, Texas is the biggest state.

gated residential house in Houston, Texas
Image Credit: ArtisticOperations, Pixabay

2. Rural

Most of Texas is rural, where land is cheaper. If you look at properties near the larger cities, the land prices increase like in every other state. However, because these cities are so few and far between, Texas has a lower home cost overall.

If you’re okay living in a rural area, you can likely find a house for very cheap. However, most jobs are found in the cities, and small-town residents often commute to work.

3. No Income Tax

Texas has no income tax, on top of having low taxes overall. Because taxes are low, the cost of owning a home is also lower. The overall cost of living is much lower, which means that you’ll get more bang for your buck when it comes to housing.

The fees for owning a home are also relatively inexpensive, which further drops the cost of homeownership. When you consider the low property taxes, you’ll find that owning a home is probably even cheaper than you would have considered initially.

4. Cheaper Labor

The labor necessary to build a house is much cheaper in Texas than in other states. That is because of the lower cost of living. Workers don’t need as much money to live comfortably simply because everything is cheaper. The lack of an income tax dramatically helps this matter, as well.

However, this lower wage also means that housing is comparably expensive for construction workers. While the cost of housing is less than in most states, it isn’t necessarily when you compare it to the average income in the area.

bricked residential house in Houston, Texas
Image Credit: ArtisticOperations, Pixabay

5. Fewer Restrictions

Overall, there are fewer building restrictions and codes in Texas. This allows builders to get things done cheaper, making homes less expensive. Plus, there are also fewer fees you have to pay during the building process, which also helps keep things more affordable.

Because Texas requires fewer licenses for contractors, builders can spend more on labor and materials—not on buying more licenses and paying to get around zoning laws.


6. Fewer “High Cost” Areas

Some scenic areas have higher property costs than others. For instance, it’s more expensive to build and buy property on beaches. Lots with incredible views are also more expensive since land with a view is less common. People tend to compete for the best views in these areas, which increases prices. Texas has several gorgeous beach towns, but it has fewer high-cost areas than neighboring states.


7. Low Rental Costs

According to the Texas real estate investment statistics, rental costs are relatively low in Texas. With much cheaper rental costs, many people decide to stay in their apartments for longer. When rental payments are often cheaper than buying a home, many people hold off on the purchase to save money. When fewer people are looking for homes, the prices decrease.

Of course, this also depends on the area. In larger cities, apartments and condos are more expensive. However, so are housing costs, so renting may still be cheaper.

apartment complex in Houston, Texas
Image Credit: ArtisticOperations, Pixabay

8. Construction Materials Are Easy to Find

Construction materials are abundant in Texas, making them easy to access. Because the supply is high, the cost of these materials is very low. For instance, sand and stone are easy to find, and both materials are used abundantly in houses.

Because these materials are available locally, you also don’t have to have them shipped in, which can potentially save builders quite a bit of money. Cheap, locally-sourced materials can make all the difference regarding house costs.

9. Moderate Climate

Texas can get quite hot but has a pretty moderate climate overall. Although some regions have experienced frigid winter weather, it’s not a common occurrence and most builders don’t need to install extra insulation or reinforce the structures as they do in colder climates. However, homes near the coast have stricter codes and must be able to withstand hurricane-force winds.

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Homes in Texas are a bit cheaper than they are in other areas. A few forces are driving this trend. First, the land is much cheaper than in other states because there is a larger supply of unsold lots. Because less of the land is developed, there are still plenty of places to put a house. People aren’t fighting over a few plots, which keeps the cost low.

Secondly, homes are also much cheaper to build. Workers don’t require as much money since the cost of living in the state is lower. Many building materials can be sourced locally for cheap, and there aren’t many fees the builders have to pay to the state. Finally, the cost of owning a home is also cheaper because homeowners pay fewer fees and taxes.

Featured Image Credit: justraveling, Pixabay


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