TEXAS — If you’re in the market for a new home right now despite inflation prompting a rise in interest rates, you could do worse than Texas, according to the results of a new study by Rocket Mortgage.
In fact, the mortgage company identifies Texas as the fifth cheapest state in which to purchase a home.
Rocket Mortgage weighed factors including median household income, the cost of living index and home prices in determining the least and most expensive states in the country.
According to the study, the top five cheapest states are:
The five most expensive are:
- New Mexico
The average price for a house in the United States in quarter 4 of 2022 cost a little over $500,000. The cost of living index for Texas in 2022 was 92.1, with a median household income of $75,100. The cost of living index refers to the amount needed to cover basic items such as shelter, food, transportation and health care.
However, before you pack your belongings and head down to the Lone Star State, remember that Texas is enormous and the cost of purchasing a home will vary depending on where you choose to live.
Austin, for instance, is in the midst of what can only be described as a housing crisis: great demand and very little inventory. In addition, the price of a house in the Austin area has skyrocketed over the past year. According to Texas Realtors, as of March the average cost for a home in Austin-Round Rock is $450,000.
It’s much the same story in the Dallas-Fort Worth area.
Not only that, but as home prices in parts of Texas have ballooned over the past year, so too have property taxes. Texas is already known for high property taxes, and many homeowners are seeing increases in the thousands.
Texans on May 7 did vote in favor of two amendments to the state constitution that will offer some property tax relief, however.