What Texas' Average Income Can Actually Afford Across Major Cities

Texas continues to attract newcomers at an unprecedented rate. During 2022 alone, approximately 668,000 people relocated to the state, and even as migration patterns have moderated to about 562,941 new arrivals between July 2023 and July 2024, Texas maintains its position as America’s fastest-growing state by population. For those considering relocating to Texas or already calling it home, understanding how far an average income actually stretches is critical in making informed financial decisions.

The purchasing power of an average income varies dramatically across Texas’ major metropolitan areas. By examining the relationship between median household earnings and annual living expenses across seven of the state’s largest cities, we can identify which areas truly offer residents the most financial breathing room. Using data collected through July 2025 from authoritative sources including the U.S. Census, Zillow, and the Bureau of Labor Statistics, here’s how residential income levels compare against cost-of-living realities.

Houston and San Antonio: Affordable Major Markets

Houston stands as Texas’ largest city with 2.3 million residents, and its economic profile reflects why so many families choose to settle there. The average household income reaches $62,894 annually, while the cost of living averages $44,732 per year. This means residents enjoy a financial cushion of approximately $18,162 each year after covering basic expenses. The numbers tell an encouraging story: the average income covers roughly 140.6% of monthly living costs, and homeowners benefit from an average property value of $276,928 with typical mortgage payments around $1,620 monthly.

San Antonio, home to 1.5 million people, demonstrates even stronger income-to-expense ratios. Although the average household income is similar at $62,917, the annual cost of living is notably lower at $41,633. This creates a surplus of $21,284 annually, allowing the average income to stretch to cover 151.1% of monthly expenses. The average home value of $257,722 and typical mortgage of $1,508 further support why San Antonio earns a reputation as one of Texas’ most budget-friendly major metros.

Dallas and Fort Worth: Growing Markets with Rising Costs

Dallas, with nearly 1.3 million residents, represents Texas’ third-largest urban center and attracts families with its cultural amenities and job opportunities. However, higher living costs characterize this market. The average household income of $67,760 meets 138.5% of monthly expenses against a cost-of-living baseline of $48,913 annually. Residents should expect average home values near $332,141 with monthly mortgage payments typically reaching $1,943.

Fort Worth, situated just 30 miles west with a population of 941,311, offers a more favorable economic equation. The average income of $76,602 provides substantial coverage—163.4% of monthly expenses—against living costs of $46,892 annually. This represents one of Texas’ best income-to-cost ratios, supported by an average home value of $305,918 and average mortgages of $1,789 per month. The city’s proximity to Dallas while maintaining lower costs makes it increasingly attractive to relocating professionals.

Austin: Premium Pricing Meets Premium Incomes

Austin has transformed dramatically with its booming technology sector and entrepreneurial reputation. The population of 967,862 supports an average household income of $91,461—the highest among the seven cities analyzed. Despite this elevated earning level, living costs are correspondingly steep at $64,197 annually, leaving a surplus of $27,264. The average income covers 142.5% of monthly expenses, a reasonable ratio given the city’s desirability. Average home values reach $556,505, the highest of any city reviewed, with typical mortgage payments approaching $3,255 monthly. For those drawn to Austin’s lifestyle but concerned about affordability, the higher average income requirement becomes a significant consideration.

El Paso and Arlington: Regional Variations in Financial Accessibility

El Paso, with 678,147 residents, showcases how average income performs in a lower-cost market. The average household income of $58,734 covers 149.6% of the $39,273 annual cost of living, providing a $19,461 annual cushion. The average home value of just $231,959 with monthly mortgages averaging $1,357 positions El Paso as the most affordable option for budget-conscious homebuyers across major Texas cities.

Arlington, positioned between Dallas and Fort Worth with 394,769 residents, offers middle-ground economics. The average household income of $73,519 substantially exceeds the $47,976 annual cost of living, covering 153.2% of expenses and leaving $25,543 annually. The average home value of $320,811 and typical mortgage of $1,877 reflect a balanced market where average income provides genuine purchasing power.

Understanding Income Power Across Texas

The data reveals a compelling pattern: Texas’ average income levels consistently outpace living expenses across all major cities, with residents retaining meaningful financial flexibility. Income-to-expense coverage ratios range from a low of 138.5% in Dallas to a high of 163.4% in Fort Worth, meaning even in the most expensive markets, the average income provides surplus funds after basic expenses. This financial buffer has become a key factor in Texas’ continued appeal to relocating Americans seeking economic stability without sacrificing urban amenities or career opportunities.

For those evaluating where an average income goes furthest in Texas, the answer depends on individual priorities: Houston and San Antonio maximize affordability, Austin offers premium living for those with above-average incomes, and Dallas-Fort Worth provides a balanced middle ground between opportunity and cost.