Why You Won’t Be Able To Afford Retiring in These 24 Cities in Texas
While Texas is often associated with brisket and affordability, certain cities within the Lone Star state have become less accessible for retirees due to rising costs of living and housing. You might expect retiring in Texas to be steeper in big cities like Dallas, San Antonio or Austin, but now, even the smaller towns are catching up in the cost of living comparison race.
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As a retiree, you need to carefully consider your financial situation and the long-term affordability of a city before making decisions about your retirement destination. Cost considerations should factor in state income tax rates, Social Security benefits, real estate markets and affordable housing, as well as overall cost of living. If living in Texas is your goal upon retirement, then being aware of which cities are escalating in unaffordable livability will come in handy for mapping out your savings goals.
Retiring in Texas
Though retirement is often seen as a time to relax and enjoy the fruits of decades of hard work, you want to make sure you won’t need a budget the size of the state of Texas.
GOBankingRates recently published a study estimating where the cost of living, housing prices and property tax rates may steadily increase past the point of affordability throughout the U.S. Here are some key takeaways on Texas retirement specifically:
There are over 70 cities in this study, and six currently have a total cost of living over $3,000 a month, including cities such as Junction or McAllen.
Though housing costs are rising, over 50 of the cities in the study still have an average home value of under $200,000.
Of the top 20 cities where retirement is getting unaffordable, all have a monthly mortgage payment averaging between $1,100 and $1,900. These cities include places such as Amarillo and Waco.
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Texas Cities With Rising Real Estate Prices
Real estate is one of the biggest expenses you have to factor into your retirement budget, especially with the cost of living compared to what you get for your money. These six Texas cities have rising housing and real estate valuations.
Brenham
Population: 17,655
Average home value: $318,056
Average monthly mortgage payment: $1,895
Average monthly cost of expenditures: $1,687
Average monthly cost of living total: $3,582
Lake Jackson
Population: 27,954
Average home value: $269,804
Average monthly mortgage payment: $1,607
Average monthly cost of expenditures: $1,712
Average monthly cost of living total: $3,320
Winnsboro
Population: 3,431
Average home value: $248,493
Average monthly mortgage payment: $1,480
Average monthly cost of expenditures: $1,694
Average monthly cost of living total: $3,174
Early
Population: 3,116
Average home value: $237,825
Average monthly mortgage payment: $1,417
Average monthly cost of expenditures: $1,708
Average monthly cost of living total: $3,125
Junction
Population: 2,494
Average home value: $231,081
Average monthly mortgage payment: $1,377
Average monthly cost of expenditures: $1,696
Average monthly cost of living total: $3,072
McAllen
Population: 142,722
Average home value: $226,596
Average monthly mortgage payment: $1,350
Average monthly cost of expenditures: $1,710
Average monthly cost of living total: $3,060
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Texas Cities With Rising Mortgage Payments
Owning your own home in retirement is a great option if available, but if you are still paying off your house, mortgage payments can really eat into your monthly bills. Here are five cities in Texas where mortgages are on the rise.
Mission
Population: 85,755
Average home value: $213,927
Average monthly mortgage payment: $1,274
Average monthly cost of expenditures: $1,711
Average monthly cost of living total: $2,985
Gonzales
Population: 7,190
Average home value: $219,104
Average monthly mortgage payment: $1,305
Average monthly cost of expenditures: $1,677
Average monthly cost of living total: $2,982
Edinburg
Population: 100,964
Average home value: $207,473
Average monthly mortgage payment: $1,236
Average monthly cost of expenditures: $1,718
Average monthly cost of living total: $2,954
Waco
Population: 140,545
Average home value: $202,088
Average monthly mortgage payment: $1,204
Average monthly cost of expenditures: $1,717
Average monthly cost of living total: $2,921
Del Rio
Population: 34,722
Average home value: $202,103
Average monthly mortgage payment: $1,204
Average monthly cost of expenditures: $1,702
Average monthly cost of living total: $2,906
Texas Cities With Rising Expenses
A fixed income shouldn’t mean you can’t still enjoy recreational activities or eating out once in a while. This is why factoring monthly expenses into your retirement plan is crucial. Here are seven places in Texas where what you spend might not get you as far as it used to.
Amarillo
Population: 200,360
Average home value: $200,783
Average monthly mortgage payment: $1,196
Average monthly cost of expenditures: $1,705
Average monthly cost of living total: $2,901
Cameron
Population: 5,356
Average home value: $195,336
Average monthly mortgage payment: $1,164
Average monthly cost of expenditures: $1,718
Average monthly cost of living total: $2,882
Cuero
Population: 8,138
Average home value: $194,378
Average monthly mortgage payment: $1,158
Average monthly cost of expenditures: $1,687
Average monthly cost of living total: $2,845
Brownsville
Population: 186,999
Average home value: $188,383
Average monthly mortgage payment: $1,122
Average monthly cost of expenditures: $1,719
Average monthly cost of living total: $2,841
Comanche
Population: 4,208
Average home value: $190,205
Average monthly mortgage payment: $1,133
Average monthly cost of expenditures: $1,705
Average monthly cost of living total: $2,839
Olivarez
Population: 6,853
Average home value: $188,186
Average monthly mortgage payment: $1,121
Average monthly cost of expenditures: $1,715
Average monthly cost of living total: $2,837
Yoakum
Population: 5,841
Average home value: $191,125
Average monthly mortgage payment: $1,139
Average monthly cost of expenditures: $1,696
Average monthly cost of living total: $2,835
Texas Cities With Rising Cost of Living
Once all of your bills are paid and you’ve covered your basic needs of food and shelter, you hopefully haven’t gone through your entire retirement savings. Places once considered affordable retirement destinations may be out of the budgetary question.
Double-check where the cost of living has sneakily gone up in Texas, such as in these six cities.
Hidalgo
Population: 14,075
Average home value: $189,335
Average monthly mortgage payment: $1,128
Average monthly cost of expenditures: $1,707
Average monthly cost of living total: $2,835
Lacy-Lakeview
Population: 7,190
Average home value: $187,297
Average monthly mortgage payment: $1,116
Average monthly cost of expenditures: $1,706
Average monthly cost of living total: $2,822
Harlingen
Population: 71,497
Average home value: $190,748
Average monthly mortgage payment: $1,136
Average monthly cost of expenditures: $1,659
Average monthly cost of living total: $2,795
Combes
Population: 3,141
Average home value: $178,444
Average monthly mortgage payment: $1,063
Average monthly cost of expenditures: $1,719
Average monthly cost of living total: $2,782
Weslaco
Population: 40,858
Average home value: $178,149
Average monthly mortgage payment: $1,061
Average monthly cost of expenditures: $1,715
Average monthly cost of living total: $2,777
San Juan
Population: 35,463
Average home value: $179,709
Average monthly mortgage payment: $1,071
Average monthly cost of expenditures: $1,699
Average monthly cost of living total: $2,770
Methodology: GOBankingRates analyzed cities across the country to find replacement retirement cities for unaffordable cities. First, GOBankingRates gathered a few factors for each city, including: total population, as sourced from the U.S. Census American Community Survey; the cost of living indexes, as sourced from Sperling’s BestPlaces; the average expenditure costs for residents aged 65 and over, as sourced from the Bureau of Labor Statistics Consumer Expenditure Survey; the livability index, as sourced from AreaVibes; the average home value for single-family homes, as sourced from the Zillow Home Value Index; and, by assuming a 10% down payment and using the National Average 30-year fixed mortgage rate, as sourced from the Federal Reserve Economic Data, the average mortgage cost can be calculated. The total monthly cost of living can be calculated by using the average expenditure and the average mortgage costs. The most expensive city and the cheapest city were recorded for each city to showcase a cheaper location for residents aged 65 and over to live. All data was collected on and is up to date as of July 8, 2024.
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This article originally appeared on GOBankingRates.com: Why You Won’t Be Able To Afford Retiring in These 24 Cities in Texas