Cost of Living in Dallas: A Guide for Homebuyers

Additional cost of living data for Dallas

Now let’s look at some real-world dollar amounts collected by various cost of living sources. Here’s more of what you can expect if you move to Dallas.

Expatistan, a cost-of-living data site, provides these monthly cost estimates for Dallas:

• Family of four estimated monthly costs: $6,076
• Single-person estimated monthly costs: $3,633

Best Places lists these housing estimates on their Dallas cost of living pages:

Dallas housing data

Number of homes	573,597.0
Median home age	42 years
Median home cost	$295,100
Home appreciation rate (last 12 months)	22.5%
Home appreciation rate (last 5 years)	60.3%
Home appreciation rate (last 10 years)	146.6%
Property tax rate (per $1,000 of value)	$17.44
Property taxes paid (average home)	$4,012
Homes owned	37.2%
Housing vacant	10.2%
Homes rented	52.6%

Source: BestPlaces.com

Dallas tax rates

• State individual income tax rate: Texas does not have an individual income tax
• State sales tax rate: 6.35%
• Dallas sales tax rate: 8.25%
• Effective property tax rate (percentage of home value): 1.74%

How does Dallas rank for livability?

Along with the cost of living, you might be curious how Dallas ranks as far as livability or quality of life. According to the AARP Livability Index in the U.S., Dallas has an above-average quality of life score of 54.

The index then provides an overall score between 0-100 (higher is better), based on rankings from seven categories:

• Overall Livability Score: 54
• Housing (affordability and access): 62
• Neighborhood (proximity and security): 62
• Transportation (safety and convenience): 57
• Environment (clean air and water): 49
• Health (prevention, access, and quality): 54
• Engagement (civic and social involvement): 49
• Opportunity (inclusion and possibilities): 47

For perspective, the highest-ranked city scores in each category were:

• Very Large: San Francisco, 66
• Large: Madison, Wisconsin, 67
• Mid-size: Portland Main, 68
• Small: Aspen, Colorado, 73

No city earned a perfect score of 100. You can learn more about this livability index on AARP’s methodology page.

Additional cost of living indexes

Here are some cost of living index links to research additional Texas living expenses:

• Statista: Provides free access to many basic statistics. Paid subscriptions are available for more detailed information about Texas communities.
• ACCRA (C2ER): Maintained by the Council for Community and Economic Research. This is a paid service that maintains one of the largest databases of cost-of-living metrics for Dallas and other Texas cities.
• World Population Review CLI page: This website provides a free search-by-state tool at the bottom of its Cost of Living Index page.
• Numbeo: This crowd-sourced CLI promotes itself as “the world’s largest database of user-contributed data about cities and countries worldwide.” This service can show you user-provided insights such as the cost of an inexpensive restaurant in Dallas or the perceived presence of crime in different parts of Texas. It’s free for personal use.

Why are people moving to (or from) Texas?

According to the United Van Lines 47th Annual Movers Study that tracks migrations within the United States, here are the reasons people are moving into Texas, or moving away to other states.

Primary reasons people are moving

Inbound	Reason for the move	Outbound
7.50%	Retirement	11.70%
2.50%	Health	5.10%
26.60%	Family	27.20%
6.50%	Lifestyle	9.90%
38.80%	Job	31.20%
3.80%	Cost	1.50%

Total inbound: 52.7%

Total outbound: 47.3%

Property insurance

As property insurance rates continue to skyrocket in states like Texas, attributed to extreme weather trends due to climate change, it’s important to get a good idea of what you can expect regarding homeowner insurance rates when considering moving to one of these locations.

Homeowner’s insurers in Texas have steadily increased rates in the state for the past two years. At the tail-end of 2023, state regulators approved 36 double-digit insurance rate increases across several carriers, including a 16.8% rate increase from Travelers, one of the state’s largest carriers.

The Traveler’s rate hike was expected to impact 370,000 policyholders in the Lone Star State. Additionally, insurers have been less willing to write policies in the state due to the increased risk for potential losses, leaving homeowners with fewer options and, subsequently, higher premiums.

According to survey data from HomeLight’s 2023 Top Agent Insights report, 25% of agents nationwide have said they saw an increase in home sale cancellations due to rising or unexpected insurance costs.

According to Insurance.com, as of Jan. 2024, the average cost of homeowner’s insurance in Texas is $4,142 a year, or $345 a month, significantly higher than the national average. However, this will vary based on your Texas zip code, property type, and other factors.

Budgeting for your move to Dallas

Below is a collection of handy online tools you can use to help estimate your moving costs and living expenses in Dallas — from how much you’ll need to pay a mover to how much your current home might sell for and the proceeds you can expect.

1. Online move cost estimators

With today’s smart technology, you can find a wide variety of tools to help you estimate the cost of paying for a mover, or how to find a trusted mover for your relocation to Dallas. Some examples include:

• Move.com Moving Cost Calculator
• Consumer Affairs ‘Find a Mover’ tool
• U-HAUL ‘Moving Help Cost’ resource page

2. Cost of living calculators

Cost of living calculators are different from cost of living indexes. These tools, which are typically free, provide a comparison based on income and regional costs for housing, transportation, food, healthcare, and other basic necessities in the two locations you select.

For example, if you live in Denver, you can view a side-by-side cost comparison with Dallas expenses — or other nearby Texas cities. Some popular cost-of-living calculators include:

• Bankrate
• BestPlaces
• Insure.com
• Forbes
• Numbeo
• RentCafe
• Salary.com

3. Living wage and budget calculators

• Living Wage Calculator: Designed by the Massachusetts Institute of Technology (MIT), this calculator can help you estimate the local wage rate that you’ll need as a full-time Dallas worker in order to cover the costs of your family’s basic living expenses.
• Family Budget Calculator: This tool, provided by the Economic Policy Institute (EPI), estimates the income your family will need to attain a modest — yet adequate — standard of living in your new Dallas community. Choose from 10 family types.

4. Homebuyer calculators

• Home Affordability Calculator: Understand the costs associated with buying a home in Dallas and find out how much home you can afford before you start shopping or planning a move.
• Down Payment Calculator: Estimate how much you might need to put down on a home in Dallas and learn more about the loan options that work best for you.
• Closing Costs Calculator: Find out how much cash you’ll need for closing costs on a Dallas house, including estimated lender and third-party fees.

5. Home seller calculators

• Home Value Estimator: Get a preliminary estimate of what your current home is worth, along with options to help you get the best price when you’re ready to sell.
• Best Time to Sell Calculator: Use this calculator that incorporates nationwide real estate transaction data to help time your move.
• Agent Commissions Calculator: Learn how much you might pay in real estate agent commissions when selling a house in your current market.
• Net Proceeds Calculator: Get a ballpark idea of the net proceeds you could earn from the sale of your existing home.

Selling your current home and buying in Dallas

To make your move smoother and less stressful, modern real estate solution companies like HomeLight have created innovative programs to help you buy a house before you sell your old one.

Watch the short video below to learn about HomeLight’s Buy Before You Sell program that lets you move into your new Dallas home now and sell your current house with peace of mind and on your timeline.

Partner with a professional to find your new Dallas home

As you plan your move, HomeLight can connect you with a top-performing, trusted real estate agent in your current city or in the Dallas community where you’d like to live. We analyze over 27 million transactions and thousands of reviews to determine which agent is best for you based on your needs.

For the best of both worlds — coming and going — ask your agent about HomeLight’s Buy Before You Sell program to help take the uncertainty out of your Dallas home purchase.

Header Image Source: (Daniel Lee/ Unsplash)