Eight Great Places to Live in Texas
Whether you're looking to retire or relocate, new residents are coming to Texas in droves to take advantage of the state's lack of personal income tax and affordable cost of living.


Kathryn Pomroy
Texas joined California in passing 30 million residents as of 2024 (a 1.55% increase from 2023), making it the second-most populated state in the United States. Between 2023 and 2024, more than 47,000 people moved to the Lone State. But even more impressive, the population of Texas has increased by more than 20% since 2010, and new residents are coming in droves to take advantage of Texas' lack of personal income tax, diverse job market, affordable cost of living and rent prices.
In 2024, 85,267 residents moved to Texas from other states, according to the U.S. Census Bureau, because of high-paying jobs in technology, energy and manufacturing, and the state's comparatively low cost of living.
There are also other reasons for this inclination to move to Texas. For example, the Kiplinger tax team recently took a look at some key reasons to move to Texas, including cities with low property taxes and certain sales tax exemptions.

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
And, as someone who grew up in San Antonio, Texas, and now lives in New York City, one of my favorite things to do when returning home to visit family is gawk at the grocery store prices, although over the past several months, I have noticed a dramatic increase. Still, I love loading up a grocery cart at a leisurely pace (shoutout to H-E-B) and finding that the total cost for the next few weeks of food is only a little over $200. I take my credit card out first every time and treat my mom because it's somehow less than one or two nights out of drinks with my friends, and I simply can't get over it.
However, long-time Texas residents will tell you it's not as affordable as it used to be, as even Texas has dealt with the rising cost of food, rent and more. But compared to the rest of America, living there is still a pretty sweet deal.
Here are some of the most bustling and most affordable cities in Texas to consider if you're making a move. Just make sure you can take the heat.
*Population data is from the U.S. Census Bureau, cost of living is from Best Places, median home price comes from Realtor.com, average home values are from Zillow and average rent is from Rent Cafe.
If you want to live in a culture hub, try San Antonio
- Population: 1,513,974
- Cost of living (national avg. = 100): 92.1
- Median listing home price: $249,398
- Average home value: $254,600
- Average monthly rent: $1,300
I had to start with my hometown first. If you like city life with all it has to offer in terms of entertainment, activities, and culture, but still like the idea of suburban living, San Antonio is a great option.
Mexican culture is ever-present and ingrained into the top-rated public schools. Six Flags Fiesta Texas and Sea World San Antonio (where I used to work as a singer!) are open year-round for summer activities and holiday-themed shows.
The bustling downtown area has undergone renovation and expansions over the last 10 years, including the renovation of the Pearl historic district, which is now home to restaurants, retail spaces, bars and breweries.
On the first Friday of every month, the downtown area hosts the city's First Friday celebration downtown, which includes live music, vendors, food stands, and much more.
If you want space for land, suburban life and slow, family-oriented living, try Waco
- Population: 146,241
- Cost of living (national avg. = 100): 93
- Median listing home price: $187,551
- Average home value: $208,800
- Average rent: $1,010
Waco may be the town that Chip and Joana Gaines made famous by renovating homes, but the housing prices in this central Texas town are still well below the national average, with the average home value of just $208,800.
Waco is a college town, home to the Baylor Bears, but its sprawling suburban areas and top-notch school districts make it perfect for young families. And back to Chip and Joana: their Magnolia Market is home to restaurants, shops, and even creative workshops where you can test your skills in cooking, floral design, and even vintage clothing curation. It's located in a once-abandoned part of town and now serves as a cultural hub for Waco residents.
Waco is also home to many parks and lush outdoor spaces, including the Waco Suspension Bridge park. Check out a bit of Waco history at the Dr. Pepper Museum.
If you want affordable, more simple living, try McAllen, Texas
- Population: 147,989
- Cost of living (national avg. = 100): 76.5
- Median listing home price: $204,100
- Average home value: $221,244
- Average rent: $960
I grew up visiting my grandparents in McAllen, and my mom lives here today, so I visit a few times a year. I don't recommend flying from NYC to McAllen because it's nearly impossible to find a round-trip ticket for under $450 — but you can avoid the problem by moving there permanently.
McAllen definitely has a slower pace of life, absolutely defined by Mexican culture, since it's a small border town located in South Texas. McAllen routinely makes the top of rental lists that tout it as the most bang for your buck per square foot. In fact, you can get 1,471 square feet of space for about $1,500.
The summer has seen a severe heat wave, with temperatures consistently reaching above 100 degrees, but the good news is you can cool off by taking a 45-minute to hour-long drive to South Padre Island, one of the most popular vacation destinations in the country, and still a top Spring Break hub in 2025.
One of my favorite things to do when visiting South Padre Island, besides swimming in the gorgeous beaches, is visiting the Sea Turtle, Inc., a non-profit sea turtle rescue center where you can feed the turtles, donate, and see rehabilitation in process.
If you want affordable urban living with country perks, try Austin
- Population: 984,567
- Cost of living (national avg. = 100): 129.1
- Median listing home price: $412,500
- Average home value: $508,841
- Average rent: $1,720
Although the cost of living in Austin, Texas, is above the national average, rent prices are still pretty affordable, compared to other major cities across the U.S. at just over $1,700 per month. Austin, the state's capital, is just an hour's drive north of San Antonio and is adjacent to the popular college town San Marcos. Of course, it's a popular college town in its own right, as it's home to the University of Texas, which comes in at 30th place (up from 32nd in 2024) for national universities in the U.S., according to U.S. News and World Report, Best Colleges for 2025.
Austin residents may complain about traffic from time to time, but the expansive food culture certainly makes up for it. Visit its hub of food trucks lined up on South First Street to indulge in everything from cupcakes to ribs.
The music scene in Austin also rivals Nashville, as it's home to South by Southwest, one of the first music festivals in the state, founded in 1987.
If you need a break from the bustling city life, head over to Lake Travis, which is less than a 45-minute drive, known for its boating, swimming, camping, and even scuba diving. Barton Springs pool is a natural swimming pool located right in the city where you can cool off, relax, and unwind from the hustle and bustle of daily life.
If you want classic Texas vibes, try Amarillo
- Population: 203,035
- Cost of living (national avg. = 100): 73.6
- Median listing home price: $193,956
- Average home value: $188,500
- Average rent: $1,020
When outsiders think Texas, they think cowboys, cattle and big steaks. And, if they're in Amarillo, they'd be right. Amarillo is located in the Panhandle, and for non-Texas folk, that means the top rectangle portion. (Get it? All of Texas is frying pan-shaped, and that's the handle).
This city is home to ranches, desert land, and Texas-sized attractions. Amarillo hosts the nation's second-largest canyon, known as Palo Duro Canyon Park. Palo Duro boasts 30,000 acres and 15,000 acres of trails to hike with Instagrammable views that rival Moab, Utah. It's the perfect backyard retreat for outdoor enthusiasts.
Amarillo also has a bustling arts scene. Cadillac Ranch features 10 Cadillac cars buried into the ground, so they sit vertically and visitors can spray paint the cars as they wish to add their own personal touch.
Restaurants like The Big Texan Steakhouse provide everything you'd ever want from cowboy Texas livin', like a 72-ounce steak portion that's absolutely free if you can slug it down in one sitting. Hats off to you if you can.
If you want a beach town oasis, try Corpus Christi
- Population: 316,105
- Cost of living (national avg. = 100): 73.6
- Median listing home price: $210,500
- Average home value: $215,604
- Average rent: $1,320
Corpus Christi is not just the birthplace of legendary Tejana singer Selena, it's also a bustling metropolitan area-meets-beach town, and it's the perfect place to settle down if you can't live without the water. And with an average rent of just over $1,300, you can live like you're on vacation every day, without the vacation prices.
Seafood, of course, reigns supreme, and activities like surfing, kayaking, and fishing take up the residents' time when they're not at the famous waterpark Hurricane Alley (that costs just $25 on the weekend to enter) or checking out the arts and music scene by catching a show at the Harbor Playhouse Community Theater.
Of course, Selena's influence is everywhere, notably at the Selena Memorial and statue located beach-side and the Selena Museum that showcases the late singer's awards, costumes and more.
If you're looking to meet people, try Houston
- Population: 2,293,288
- Cost of living (national avg. = 100): 96.9
- Median listing home price: $247,900
- Average home value: $263,945
- Average rent: $1,350
The average age of Houston residents is 33.5, so if you're young and single, looking to expand your group of friends, or just want a larger community, Houston is a great place to live.
Metro Houston’s unemployment rate was 4.1 percent in December 2024, down from 4.5 percent in November. The national average is 3.8% and the unemployment rate for all of Texas is 3.7. That means unemployment is a bit higher in Houston than in surrounding areas.
Houston is also one of the most diverse cities in America, which lends itself to its arts and museum scene. Just a few festivals the city is known for? The Bayou City Art Festival, Houston Auto Show, Houston Fashion Week, Houston Gay Pride Parade, and of course, the Houston Livestock Show and Rodeo. You'll never be bored if you most to Houston.
If you want a mix of classic and modern, try El Paso
- Population: 676,395
- Cost of living (national avg. = 100): 81.9
- Median listing home price: $195,600
- Average home value: $223,218
- Average rent: $1,060
El Paso sits on the Rio Grande across the Mexico–United States border from Ciudad Juárez, Mexico. The city comes in at #3 as one of the best places to live in Texas by U.S. News and World Report, 2025-2026, and attracts a wide variety of visitors each year to the many cultural and recreational offerings, such as the Hueco Rock Rodeo. Be sure to bring your wide brimmed Stetson!
El Paso's rich Mexican heritage is found in its local restaurants and the sombrero-shaped Abraham Chavez Theatre. You can indulge in the local arts scene by visiting the El Paso Museum of Art or the Plaza Theatre, or hike one of dozens of trails, such as the El Paso Mission Trail.
The University of Texas at El Paso is the city's primary university. It attracts a wide range of students from across the country, and has one of the lowest out-of-pocket costs of any U.S. research university in the U.S.
Related Content
Get Kiplinger Today newsletter — free
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.
Brittany Leitner is a freelance journalist with over 10 years of experience in lifestyle, health, and more. She received a Digital Health Award for her reporting in 2019 as well as numerous awards for her work in poetry. She previously held positions as senior editor at Elite Daily and managing editor at The Dr. Oz Show. Follow her online @britariail.
- Kathryn PomroyContributor
-
The S&P 500 Falls Into Correction Territory After Trump's 200% EU Tariff Threats
The White House said alcohol imports from the European Union could soon face tariffs of 200%.
By Karee Venema Published
-
Tax-Deductible Home Improvements for Retirement in 2025
Retirement Taxes Your aging-in-place plan could benefit from the medical expense tax deduction. But watch out for capital gains and property taxes.
By Kate Schubel Published
-
Listed: Three Homes to Buy in Hawaii
Three homes for sale on the real estate market in Hawaii, as part of Kiplinger's series Listed.
By Alexandra Svokos Published
-
Listed: Three Homes for Retiring in Portland, Maine
Three real estate listings in Portland, Maine.
By Alexandra Svokos Published
-
A Little-Known Tax Buster for Rich Retirees: Zero-Coupon DST
Maybe you've heard of using Delaware statutory trusts to defer taxes on real estate investments, but zero-coupon DSTs take those benefits a step further.
By Derek A. Miser, Investment Adviser Published
-
I'm 60, just paid off my $1 million home and have $750K in retirement savings — can I retire now?
We asked expert financial advisers to weigh in.
By Eileen Ambrose Published
-
Listed: Three Fabulous Homes to Retire in Portugal
See three fabulous real estate listings of homes in Portugal for a vibrant retirement, as part of Kiplinger's "Listed" series.
By Alexandra Svokos Published
-
How to Use Good Debt (While Identifying and Avoiding Bad Debt)
Not all debt is bad, but knowing the difference between good debt and bad debt and how to use them can help you get ahead financially and stay ahead.
By Mike Decker, NSSA® Published
-
Six Risks of Delaware Statutory Trusts in 1031 Exchanges
Here's how proper preparation can help you successfully navigate these DST risks, from market uncertainties to structural limitations.
By Daniel Goodwin Published
-
The Future of 1031 Exchanges Under Trump Looks Bright
As a real estate investor himself, President Trump appears poised to preserve the tax-deferring power of this strategy. But you still must follow the rules.
By Edward E. Fernandez Published