Why Are Houses In Texas So Cheap?

It’s no secret that everything is bigger in Texas. However, that doesn’t apply to the shockingly low housing costs. So, why are houses in Texas so cheap?

Houses in Texas are so cheap because of the low cost of land and affordable labor for construction. Texas has a 62% homeownership rate because the economy is strong, which affects housing costs. There is plenty of free land in Texas, so you can easily buy a plot and build an affordable home.

Builders also have less overhead because of cheap labor rates and permit fees, which makes houses cheaper. Look for homes in rural areas like Brownsville, where houses are particularly cheap. Follow along as we explore why houses in Texas are so cheap.

There is so much available land in Texas that there is more supply than demand. Of course, this depends on where you want to buy your house. For example, a house in Lubbock, Texas is much cheaper than a house in Houston.

Texas has 7.48 trillion square feet of land, which makes it the second-largest state. Currently, 29.53 million people live in Texas, and there is still plenty of housing. The high supply of land means that there are almost always new communities being built in Texas.

You can get a greater value out of construction in Texas than in many other states in the country. It is generally cheaper to build a house in Texas because of the lower labor and material costs. For example, it costs roughly $90-$120 per square foot to build a house in Texas.

Conversely, it costs as much as $300 per square foot to build a house in New York. If you own land in Texas, it can cost as little as $50,000 to build a new home. This also means that you could find better prices on existing homes if the seller also built the house.

The land is cheap in Texas, and that means everything when it comes to housing costs. You can buy an acre of land for between $60,000 and $70,000 in towns such as Kaufman, Texas. Even premium areas in Texas like Santa Fe offer an acre of land for $20,000 in some places.

Land values vary based on factors such as population and location. You will get the best value if you buy land in a rural area in Texas. Sellers can offer great prices if they built the home because of the cost of the land.

You can also find affordable homes in large communities that share a chunk of land. There are countless suburban communities in Texas with cheap houses because of the low construction overhead and land costs.

The economy is great throughout many cities and towns in Texas. This means that citizens spend more money on everything from goods and groceries to houses. Texas boasts a 62% homeownership rate, which indicates that the economy is strong and most of the population owns their homes.

Over 64% of the population in Texas is part of the workforce. The lack of a state income tax also helps bolster the economy and encourage spending. Houses in Texas will always be cheap as long as the economy stays strong.

There are fewer barriers between landowners and permit offices in Texas. All that you need to obtain a permit to build in Texas is present proof of your identity, the contractor’s information, the cost of the build, and the plot’s address. You may still have to pass an inspection, but that is standard and shouldn’t hold up the process.

This removes lots of red tape and fees associated with building on land in other states. It also reduces the time that a landowner has to wait to begin construction and hold up their investments.

Houses are cheaper in Texas than in Georgia, but only by a small margin. The median home value in Texas is $187,200 as of the last census. Homes in Georgia currently have a median value of $190,000.

While this is a small difference, it can say a lot about how much you can expect to pay for a home. Georgia is home to cities such as Milton where houses have a median value of $857,000. Dallas-Fort Worth is the Texas equivalent, but homes only have a median value of $364,000.

With that said, Georgia typically has lower monthly homeownership fees. The average monthly homeownership cost in Georgia is $435, whereas it is $526 in Texas.

The main reason why houses in Texas are so cheap is because of the low cost of land. It is also cheap to build houses in Texas because permit fees are affordable, and labor is inexpensive. There are many rural areas in Texas, such as Brownsville, Alamo, and Milton that have many cheap houses.

Texas is the second largest state in the country, so there is plenty of cheap land for builders. That is why you find so many affordable subdivisions that share a large plot of land. The economy in Texas is also quite strong, which is why 62% of the population owns their homes.

This is largely because of the lack of a state income tax and the surplus of jobs. The majority of the population is also in the workforce, which helps drive the economy and lower the cost of housing. Builders can also save money and sell houses for cheaper because of the low cost of permits in Texas. Avoid areas like Houston, Dallas-Fort Worth, Dallas, San Antonio, and Austin if you want to find cheap houses.