Sarah and Mark had always dreamed of owning a home, but after years of saving and searching in cities like San Francisco and New York, they felt trapped in an endless cycle of high rents and low affordability. One evening, after another disheartening day of browsing overpriced listings, they came across a story about Texas. A state known for its wide-open spaces, barbecue, and southern hospitality, Texas was also becoming famous for something else — affordable real estate. Intrigued, Sarah and Mark began exploring small towns and mid-sized cities across the Lone Star State. What they found was astonishing: entire homes priced at a fraction of what they would pay in more expensive markets. The couple began to wonder — could Texas be their new home?
This article will explore the cheapest houses in Texas, from rural towns to smaller cities, where you can still find homes that fit modest budgets. Whether you’re a first-time homebuyer or looking to retire comfortably, Texas has options that may surprise you.
Why Texas? The Real Estate Landscape
Texas has long been a popular destination for individuals and families seeking a better quality of life and affordable housing. According to the U.S. Census Bureau, Texas gained more residents in 2022 than any other state, adding approximately 450,000 people to its population. The state’s booming economy, favourable tax policies (no state income tax), and overall lower cost of living have made it an attractive place for homebuyers and businesses.
Despite this population growth, housing in many parts of Texas remains relatively affordable compared to the national average. The Texas Association of Realtors reported that the median home price in Texas in early 2023 was about $345,000, significantly lower than the U.S. national median of approximately $416,100. However, there are numerous areas in Texas where homes are even cheaper than that, especially in smaller towns and rural regions.
The Cheapest Cities and Towns to Buy a Home in Texas
- Wichita Falls
Located in northern Texas near the Oklahoma border, Wichita Falls offers some of the most affordable homes in the state. With a population of just over 100,000, it combines small-town charm with city amenities. According to Zillow, the median home value in Wichita Falls as of 2023 was approximately $152,000. This is nearly half the statewide average and far below the national median.
Wichita Falls is particularly appealing to first-time homebuyers and retirees due to its low cost of living and slower-paced lifestyle. Additionally, the city is home to parks, lakes, and cultural activities, making it an attractive location for those seeking a balance of affordability and quality of life.
- Brownsville
Situated at the southern tip of Texas, Brownsville is another city where affordable housing remains. With a population of around 180,000, it is one of the larger cities on this list but continues to offer some of the cheapest housing in Texas. According to Redfin, the median home price in Brownsville hovers around $170,000. Brownsville’s location near the U.S.-Mexico border provides a vibrant cultural experience, and the cost of living is about 25% lower than the national average.
Brownsville could be an excellent option for those interested in warmer climates and a laid-back lifestyle. The city’s proximity to the Gulf of Mexico also offers access to beautiful coastal areas, which is a rarity at this price point.
- Laredo
Another border city, Laredo, has consistently grown while maintaining relatively low housing prices. Realtor.com says the median home price in Laredo in 2023 was $185,000, making it a highly affordable option in the state’s southern region. Known for its rich history and bilingual population, Laredo offers a unique blend of American and Mexican cultures. Its economy is driven by international trade, and its low property prices make it an attractive destination for residents and investors.
- Odessa
In West Texas, Odessa is part of the Permian Basin, an area known for its oil and gas production. Despite its economic significance, according to Zillow, Odessa offers some of the most affordable homes in Texas, with a median home price of around $165,000. While the city’s fortunes rise and fall with the oil industry, its low cost of living and relatively high wages in energy-related jobs make Odessa an excellent place to purchase a home for those employed in the sector.
- Texarkana
As a city straddling the Texas-Arkansas border, Texarkana benefits from a unique geographic location. The Texas side of Texarkana offers some of the most affordable housing in the state, with a median home price of about $145,000 in 2023, according to Realtor.com. The city provides a low-key lifestyle with plenty of outdoor activities, including parks and lakes. With a population of around 36,000, Texarkana is ideal for those looking to escape the hustle and bustle of larger cities.
Rural and Small Towns: Hidden Gems for Affordable Housing
Beyond the larger cities, Texas is home to numerous small towns where real estate is even more affordable. These rural areas often provide the opportunity to purchase larger plots of land, sometimes for less than $100,000.
- Pecos
Pecos, located in West Texas, is a small town where the median home price is well below $100,000. According to data from Niche.com, many homes in Pecos sell for as little as $60,000. While the town is relatively remote, it offers a close-knit community and easy access to natural attractions like the Guadalupe Mountains.
- Killeen
Another small city with affordable housing is Killeen, home to Fort Hood, one of the largest military bases in the U.S. According to Zillow, the median home price in Killeen is around $205,000. Still, many homes sell for significantly less, particularly those near the military base. The base heavily influences the town’s economy, and its affordability makes it a popular option for military families.
Why Are Homes in These Areas So Affordable?
There are several factors contributing to the lower home prices in these regions:
- Economic Diversification: Many more miniature cities and rural areas in Texas rely on a single dominant industry, such as agriculture or oil and gas. When these industries face downturns, housing prices often stagnate or decline, creating opportunities for affordable buying.
- Lower Demand: Unlike major metropolitan areas like Austin or Dallas, smaller towns and rural regions compete less in the real estate market, making prices low.
- Land Availability: Texas has vast land, particularly in rural areas. The abundance of land helps keep housing prices lower than more land-constrained states.
Conclusion:
Finding Your Affordable Home in Texas
Texas offers numerous opportunities for those like Sarah and Mark who are searching for affordable homes. Whether you’re looking for a vibrant city like Brownsville, a quiet rural town like Pecos, or a mid-sized city like Wichita Falls, the Lone Star State provides a range of options to suit different needs and budgets. With its growing economy, relatively low cost of living, and diverse geography, Texas remains one of the best states for homebuyers seeking affordability without sacrificing quality of life.
