Texas Living Costs Are On The Rise

It seems to surprise a lot of people from outside of Texas just how affordable it is to live here. There is a perception that Texas is one of the more expensive states whereas, in reality, the cost of everything from rent to groceries to entertainment is lower than the US average. Unfortunately, that does not mean Texas is immune to the rising prices throughout the US over the past year.

There have been numerous graphics showing just how expensive a turkey is this Thanksgiving as compared to last Thanksgiving. However, that is only the tip of the iceberg. To understand just how high living costs are getting in Texas, let’s take a look at some of the common expenses.

House Prices In Texas

Texas housing prices have, over the past decade, risen at a rate that has outpaced the rest of the United States. Nonetheless, house prices here have remained cheaper than the average. Over the past year, house prices have skyrocketed.

If you had bought a home in Texas in January 2020, you would have paid an average of $213,000. In September 2021, you would have paid an average of $262,000! If it seems unlikely that people recovering financially from a pandemic are able to pay such high prices, you're right. The cost of housing is not going up because there are so many buyers desperate to get their hands on Texas housing.

Rather, the prices are rising because of a severe lack of supply, caused by construction delays and a lack of sellers. This is a trend throughout the United States. The average cost of a home in January 2021 was $383,000. In Q3 of 2021, that had risen to $453,000!

The numbers show that Texas housing prices are still way below the national average. But that does not mean buying a home is affordable, especially for people who were out of work during the pandemic and are paying more for groceries and other living expenses.

Texas Home Insurance

With the increased price of homes, the premiums new homeowners will pay on their Texas home insurance are sky high. This is not just because the price they are paying for the home is high. It is also impacted by the fact that construction materials are extremely expensive, and repairing damages will cost significantly more than it would have in the past.

Construction companies are also working overtime to make up for the new housing shortage. If you want a construction company to come and work on your home, you are going to pay high prices. Your insurance premiums will be priced high to reflect this.

Renting In Texas

Buying a home in Texas right now is going to cost you a fortune. What about renting? Rent is not increasing at nearly the same pace as housing prices, but it is increasing. This follows the US trend. Nonetheless, rent in Texas is still somewhat affordable.

The average rent in Texas is around the $1,000 per month mark. This is significantly lower than the national average of $1,400. That said, the most expensive states skew that number higher than is really the case. At $1,000, Texas is actually more expensive than most states, although it is far from being among the most expensive.

Groceries

Let’s talk about groceries and the high prices of turkeys. Turkeys, of course, are in particular demand at this time of year, but it is not just their prices that are rising. You will pay more for groceries in Texas and throughout the US than ever before as we come to the end of 2021. This is because of shortages at every stage of the food supply chain, including labor, livestock, produce, and so on.

The good news is that relief is expected to come in 2022. Things are going back to normal throughout the US, and that will relieve the stress on the food supply chain. Prices may return to pre-pandemic levels sooner rather than later.

In all other senses, it remains to be seen whether there will be a price correction. While it may help individuals for house and rent prices to drop, it could cause economic chaos, and so it is difficult to know what to hope for. The ideal is that salaries increase so that people can afford the new cost of living, letting small and big companies alike stay stable without harming people’s quality of life.