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.

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.

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.

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

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

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

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.