Calling All Lone Star State Homebuyers! Check Out These Affordable Places in Texas to Buy Your Dream Home

Texas may not have cities on the U.S. top ten most expensive list, but buying a house is rarely done with pocket change no matter how affordable the location. That said, there are comparatively inexpensive places to buy in Texas, and we’re going to tell you exactly where to find them.

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Using the cost of living index scores from Best Places (keep in mind that 100 is the national average, so it’s always up or down from there when we’re sharing numbers below) and a deep dive into market research to analyze median home sale prices, we’ve determined the cheapest places to buy a house in Texas. The statewide median home sales price is $342,000 as of August 2022, so we’re looking at cities where you can buy a house for less.

Let’s go!

Abilene

West of Fort Worth in interior Texas, the small city of Abilene has a population of just under 127,000 with 0.64% annual growth, and a median home price of $217,500 — which is up 5.9% from February 2021 but still puts Abilene considerably under the state’s median price for housing.

Abilene job opportunities tend to be in the transportation, distribution, and commerce sectors, while the historic downtown area offers lots in the way of arts and culture.

Three of Abilene’s most affordable neighborhoods based on median home pricing include Westwood Richland ($155,000), South Treadaway ($165,000), and Red Bed ($194,000).

Median home price: $217,500
Median household income: $52,518
Cost of living index: 79.3
Cost of utilities index: 105.5
Property tax rate: 1.52%
Listings in Abilene: View available homes

Bacliff

Considering Bacliff’s coastal location, it’s a wonder this tiny town — with a population of approximately 10,000 — is still so affordable. The median home price here is just $211,875, which is down a remarkable 18.6% since February 2021.

Bacliff’s unemployment rate is 8.2%, but job growth is predicted to be 34% over the next ten years. And with a seaside location, convenient proximity to Houston, and ultra-affordable homes, it’s hard not to be curious about Bacliff.

Median home price: $211,875
Median household income: $54,242
Cost of living index: 86.8
Cost of utilities index: 93.5
Property tax rate: 2.01%
Listings in Bacliff: View available homes

Caddo Mills

Caddo Mills sits about 45 minutes northeast of Dallas, and while it’s a very small town — the population is just 1,500 — you can score a great deal on a home and still enjoy convenient proximity to a large city. The median home price is up 2.1% from April 2021, but pricing still sits well below the statewide median.

The unemployment rate in Caddo Mills is 6.5%, which puts it slightly over the national average of 6%, but job growth has increased 3.2% in the past year. Though the commute may not be ideal, it wouldn’t be unthinkable to live in Caddo Mills and commute to Dallas for work — where there are job opportunities in a variety of industries.

Median home price: $286,633
Median household income: $59,107
Cost of living index: 104.3
Cost of utilities index: 104.2
Property tax rate: 1.57%
Listings in Caddo Mills: View available homes

Elmendorf

Just 20 minutes southeast of San Antonio, residents of Elmendorf enjoy easy access to the city, as well as Victor Braunig Lake and Calaveras Lake. The population is approximately 2,000 and growing at a rate of 1.95% annually — but home pricing is still favorable. In fact, the median home price in Elmendorf is down 12.9% from March 2021, making this town one of the cheapest places to buy a house in Texas.

Unemployment is at 6.7% and job growth is increasing at a rate of 1.6% — and with San Antonio nearby, opportunities await without a long commute.

Median home price: $185,000
Median household income: $48,942
Cost of living index: 85.2
Cost of utilities index: 95.8
Property tax rate: 1.97%
Listings in Elmendorf: View available homes

Glen Rose

Glen Rose sits an hour southwest of Fort Worth, and with a population of 2,700 and a median home price down a whopping 27% from February 2021, this is one small town worth a closer look for affordable property in Texas.

Unemployment in Glen Rose is fairly average at 6.7%, and job growth is increasing at a rate of 2.7% annually. While a commute to Fort Worth may not appeal to everyone, Glen Rose may be of interest to anyone who loves the outdoors — this small town is very close to Big Rocks Park, Dinosaur Valley State Park, and the Squaw Creek Reservoir.

Median home price: $260,000
Median household income: $57.836
Cost of living index: 99.1
Cost of utilities index: 98.7
Property tax rate: 0.96%
Listings in Glen Rose: View available homes

Humble

Humble’s population of 17,000 is growing at a rate of 0.98% annually — likely thanks to its proximity to Houston, which is just 25 minutes away. Humble still has a very reasonable median home price of $272,000, which is up only 0.7% from February 2021.

This, uh, humble town is known for its former glory as an oil boomtown, but today it’s a comfortable suburban area with affordable homes and a job market that is growing at a rate of 3.2%.

Median home price: $272,000
Median household income: $53,038
Cost of living index: 92.4
Cost of utilities index: 96.9
Property tax rate: 1.91%
Listings in Humble: View available homes

Jacksonville

Not to be confused with the Florida city of the same name, Jacksonville, Texas has a modest population of just under 14,000. The city sits about two hours south of Dallas and three hours north of Houston. It’s a quiet place with median home pricing down 5% from June 2021, which could make it a great opportunity for someone looking for affordable property in Texas.

Jacksonville’s unemployment rate is 7.6%, but job growth over the next ten years is predicted at 24.4%. Agriculture, manufacturing, and retail are the biggest industries here.

Median home price: $212,000
Median household income: $43,769
Cost of living index: 70.2
Cost of utilities index: 98.7
Property tax rate: 1.32%
Listings in Jacksonville: View available homes

Lake Jackson

Adding another coastal town to the list, Lake Jackson is about 50 minutes south of Houston and has a population of 28,000, which is growing at a rate of 0.47%. This is still an affordable place to buy a home thanks to a median home price of $235,000, that is down 8% from February 2021.

The unemployment rate here is 8.7%, which is above the national average of 6%, but job growth is increasing by 3.1% and the cost of living is 14.5% below the U.S. average.

Median home price: $235,000
Median household income: $81,207
Cost of living index: 85.5
Cost of utilities index: 96.6
Property tax rate: 2.03%
Listings in Lake Jackson: View available homes

Mineral Wells

Though the population of Mineral Wells is declining at a rate of 1.35%, the town of 14,500 is still an interesting place to buy a home thanks to a low cost of living and a median home price under $200,000 — and that’s even after a 31.5% increase from February 2021.

Mineral Wells is an hour west of Fort Worth, which means residents have proximity to a large city for entertainment and employment options, which likely explains the predicted 36.3% job growth over the next decade.

Median home price: $187,450
Median household income: $52,038
Cost of living index: 72.6
Cost of utilities index: 98.4
Property tax rate: 1.17%
Listings in Mineral Wells: View available homes

Stephenville

Stephenville’s population is growing at a rate of 1.77% — currently at 21,600 — and while this small city’s median home price is up 19.6% from February 2021, it remains one of the state’s most affordable places to buy.

The unemployment rate in Stephenville is 5.4%, putting it below the national average. The growth rate is quite positive here as well, with experts expecting a job growth rate of 38.8% over the next ten years.

Median home price: $269,000
Median household income: $48,602
Cost of living index: 80.9
Cost of utilities index: 98
Property tax rate: 1.48%
Listings in Stephenville: View available homes

Key takeaways

There are still many affordable places to buy a home in Texas! The U.S. median home price in 2022 is $428,700, and the Texas cities we’ve shared here have median prices ranging from $185,000 to $286,000. Don’t let affordability get in the way of buying your dream home — do your research and get creative.

As always, remember that there’s no better way to find your perfect home in Texas than to work with a great real estate agent! For more resources around finding affordable homes and saving for your down payment, check out our Buyer Resource Center for all things homebuying, personal finance, and mortgages.

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