10 Most Affordable Housing Markets in Texas
Austin: $557,000; Colleyville: $870,000; University Park: $2.2 million.
These aren’t prices of single high-priced homes found on a real estate site. These are average home prices for these cities.
Much of Texas is no longer affordable. In fact, the state is becoming downright expensive even for high earners. That’s why we wanted to dig into data to find the most affordable housing markets in The Lone Star State.
You won’t believe how affordable homes are in many areas.
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Affordable City and Typical Home Price
1. Port Arthur - $95,291
2. Rio Grande City - $105,326
3. Alice - $108,261
4. Plainview - $109,243
5. Kingsville - $127,441
6. Mercedes - $127,621
7. Marshall - $127,858
8. San Benito - $132,558
9. Big Spring - $133,344
10. Beeville - $141,607
1. Port Arthur - $95,291
Port Arthur is the only town on our list weighing in at less than $100,000. The “cajun capital of Texas” is more than just low home prices. From parks along the Gulf of Mexico to botanical gardens to, you guessed it, cajun food, this town has something for everyone. And at an estimated payment of just $658* per month, homeowners will have plenty of funds left over each month to enjoy the surroundings.
*Payments mentioned in this article do not include taxes, insurance, or HOA dues. Example purposes only. Not a commitment to lend. See methodology for payment details.
2. Rio Grande City - $105,326
As you might guess – even if you’re not a Texas native – Rio Grande City is located on the Mexico border. The city offers a port of entry, a privately-owned bridge that provides a “faster and more efficient commercial crossing” between the U.S. and Mexico, according to the company’s website. The bridge offers employment opportunities, bolstering the local economy.
3. Alice - $108,261
Less than an hour west of Corpus Christi, this smaller town offers home prices about half of those in the larger metro. This town of around 17,000 is known as “Hub City” for its central location in south Texas, according to the official city website. And at an estimated mortgage payment of just $747 per month, you’re likely to find an affordable home here.
4. Plainview - $109,243
Going north to the Texas panhandle, we find Plainview, a town of just under 20,000. The town’s economy runs on agriculture: not only growing wheat, cotton, and vegetables but manufacturing farming equipment, says Britannica. Home prices in this area have dropped from a high of $124,000 in August 2022, says Zillow, but appear to be stabilizing. The recent price drop has made housing even more affordable here.
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5. Kingsville - $127,441
This small town on the southern tip of Texas offers an estimated payment of about $880 including principal, interest, and mortgage insurance based on a 5% down payment. The town hosts the Naval Air Station Kingsville, one of only two locations for Navy jet aviation training. It trains 50% of all Navy and Marine Corps tactical jet pilots each year.
6. Mercedes - $127,621
Though affordable, Mercedes offers a high standard of living, featuring shopping, authentic Mexican-style restaurants, golf, and even a drive-in movie theatre.
7. Marshall - $127,858
Prices are so low in Marshall that your down payment on an FHA loan would be less than $4,500. Housing is about as affordable as anywhere in the U.S. But that doesn’t mean low living standards. There’s plenty to do in and around the town from shopping to festivals to a vineyard; you won’t be bored.
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8. San Benito - $132,558
San Benito is one of the most southern towns in Texas, just 30 minutes from the extreme southern tip of the state. It offers robust employment opportunities in the automotive and aerospace industries while having a cost of living 19% lower than the national average.
9. Big Spring - $133,344
You can visit the spring for which the city is named and also the municipal auditorium, pictured above, a venue that has hosted the likes of Bing Crosby, Hank Williams, Jr., Elvis Presley, Wayne Newton, and others. But the town is more than outdoor recreation and an entertainment venue. Major employers include the Department of Veterans Affairs, Delek US, and Walmart, supporting the local economy. Homebuyers looking for lower home prices, a low cost of living, and a great place to live should consider Big Spring.
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10. Beeville - $141,607
Sure, home prices are low in Beeville, but what’s more impressive is that the entire town is geographically eligible for zero-down USDA home loans – a type of mortgage designed for rural communities. They require no down payment and monthly mortgage insurance is about half that of FHA. Homebuyers wanting low upfront and monthly costs should check out this town.
Get Pre-Approved for Your Texas Home
Like most places in the U.S., Texas homes are getting more expensive each year. Homes in Southlake and University Park in the DFW metro area now average over $1 million.
But looking beyond large cities, you find lesser-known gems that offer monthly payments affordable to just about any budget. With these prices, why wait to own a home?
Get pre-approved for your Texas home now.
Methodology
To find the 10 most affordable housing markets in Texas, we started with typical home prices as reported on the Zillow Home Value Index (ZHVI) Single-Family Home Time Series for February 2024. We assumed a 5% down payment, the typical requirement for first-time buyers. We then calculated the monthly payment on a 30-year fixed mortgage at 6.946%, the average rate published on Optimal Blue Mortgage Market Indices for a buyer with less than 20% down and a 700 FICO score. We added PMI costs per mortgage insurance provider MGIC. The stated mortgage payment does not include homeowner’s insurance, property taxes, or HOA dues. To increase relevancy, we limited eligible cities to the top 3,000 largest by population nationwide per Zillow data.
