Texas' Average Income in Major Cities: A Comparative Economic Snapshot

Texas continues to attract significant migration, with hundreds of thousands of residents relocating annually. This influx raises an important question: how does average income in Texas stack up against living expenses in the state’s major metropolitan areas? Understanding the purchasing power of median household earnings reveals stark differences across the Lone Star State’s largest cities.

The Migration Wave and Economic Impact

Texas’ population surge has been remarkable. Between July 2023 and July 2024, over 562,000 new residents arrived, outpacing growth in any other U.S. state. This demographic expansion directly impacts housing markets, cost of living, and the sustainability of local salaries. For prospective residents, examining how median household income aligns with actual expenses is crucial before making a relocation decision.

Austin: High Earnings Meet Premium Living Costs

Austin stands out as Texas’ most expensive major city, with an annual cost of living reaching $64,197. However, the median household income of $91,461 provides substantial cushion, with residents retaining $27,264 annually after covering basic expenses.

The city’s appeal—driven by its thriving tech sector, vibrant cultural scene, and reputation as a food destination—justifies the premium pricing. Average home values hit $556,505, representing the highest in the comparison. Yet the income-to-expense ratio of 142.5% demonstrates that high earners in Austin maintain favorable purchasing power despite elevated housing costs averaging $3,255 monthly.

Fort Worth: Best Value Proposition Among Large Cities

Fort Worth emerges as the standout performer in terms of purchasing power, with median income covering 163.4% of monthly living expenses. The average income in Texas cities varies significantly, but Fort Worth’s combination of lower costs ($46,892 annually) and solid median income ($76,602) creates exceptional economic flexibility.

Residents enjoy $29,710 in annual surplus funds—the highest among all analyzed cities. Average home values ($305,918) and monthly mortgage payments ($1,789) remain reasonable, making Fort Worth particularly attractive for families and budget-conscious professionals seeking urban amenities without Austin-level expense.

San Antonio: Affordability With Metropolitan Scale

As Texas’ second-largest city with 1.5 million residents, San Antonio demonstrates that size doesn’t necessitate high costs. The annual cost of living ($41,633) ranks among the lowest, while median household income ($62,917) provides 151.1% expense coverage.

Homebuyers benefit from average property values of $257,722 and typical mortgage payments of $1,508—the most accessible entry points into homeownership among major metros. The city’s slower pace combined with economic efficiency makes it appealing to those prioritizing affordability.

Houston: Scale and Affordability Combined

Houston’s 2.3 million population makes it Texas’ largest metropolitan area, yet it maintains remarkable affordability. With annual living costs of $44,732 and median household income of $62,894, residents retain $18,162 yearly while covering 140.6% of expenses.

The average home value of $276,928 with $1,620 monthly mortgage payments positions Houston as competitive for homebuyers. The city’s diverse economy, strong job market, and reasonable housing costs explain its continued appeal to domestic migrants.

Dallas: Balanced Growth in a Premium Market

Dallas’ population of 1.3 million and position as a major corporate hub result in slightly elevated costs ($48,913 annually) compared to Houston and San Antonio. However, median income of $67,760 maintains equilibrium, with residents covering 138.5% of monthly expenses.

Average home values reach $332,141 with $1,943 monthly mortgages. The city’s family-friendly neighborhoods, arts infrastructure, and diverse dining scene justify moderate premium pricing relative to other major Texas metros.

El Paso and Arlington: Secondary Cities With Distinct Advantages

El Paso, with 678,147 residents, offers Texas’ lowest living costs at $39,273 annually. The median household income of $58,734 stretches further here than anywhere else, providing 149.6% expense coverage and $19,461 in annual surplus. Average home values of $231,959 with $1,357 mortgages make homeownership highly accessible.

Arlington, positioned between Dallas and Fort Worth, serves as a suburban alternative with 394,769 residents. Its annual cost of living ($47,976) and median income ($73,519) yield 153.2% expense coverage—demonstrating that proximity to major metros doesn’t require proportional cost increases.

Key Takeaways: Navigating Average Income in Texas

Texas cities present vastly different economic scenarios. Fort Worth leads in purchasing power relative to earnings, while El Paso offers the absolute lowest costs. Austin commands premium pricing justified by high median incomes and opportunity density. San Antonio and Houston balance scale with affordability, while Dallas and Arlington offer middle-ground positioning.

The average income in Texas varies significantly by location—from $58,734 in El Paso to $91,461 in Austin. Rather than a single metric, the income-to-expense ratio proves more revealing: Fort Worth’s 163.4% coverage far exceeds El Paso’s 149.6% or Dallas’ 138.5%, reflecting how far paychecks actually stretch across different urban landscapes.

For those relocating to Texas, matching personal financial circumstances to specific city economics ensures optimal quality of life and long-term financial stability.