Here Is the Cost of Living for Each Generation in Texas

December 21, 2024

3 min Read

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Despite a rapidly growing population that would normally drive living costs much higher, Texas remains one of the more affordable states in the country. Only 14 states have lower average costs of living than Texas, according to the latest data from the Missouri Economic Research and Information Center (MERIC). The Lone Star state has a cost of living index score of 92.6 — well below the U.S. mean of 100.

That doesn’t mean all Texans get by on the cheap. Like most states, Texas’ living costs are higher than average in large cities such as Austin and Dallas. Average living costs also vary depending on how old you are.

Gen Xers have the highest living costs in Texas by a fairly wide margin, according to a new GOBankingRates study. Total living expenditures for Gen Xers in the Lone Star State average $43,467 annually — more than 80% higher than Gen Z and 16% above millennials, who are next closest.

For its study, GBR analyzed each state to find the average monthly expenses and the highest expenditure cost for different generations. Researchers looked at data from MERIC, the U.S. Census Bureau, the Bureau of Labor Statistics and the Federal Reserve. Spending categories included groceries, healthcare, housing, utilities, transportation and miscellaneous expenses.

Gen Xers in Texas outspend other age groups in every category except healthcare, where baby boomers have the highest costs. That’s part of a broader national pattern.

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Americans in the Gen X demographic have the highest living costs pretty much everywhere — which is what you might expect, given that they are in their prime earning (and spending) years. Most Gen Xers have reached an age when they tend to move into bigger houses, buy pricier cars, and have more family members to support.

In contrast, many Gen Zers are still in school, while most boomers are retired. Meanwhile, only the oldest millennials have reached an age where they are entering their prime earning and spending years.

Here’s a look at the cost of living for each generation in Texas.