The Unexpected Value Of $100 If You Live In Texas

While $100 may seem like it buys the same no matter where you are, the truth is its actual value can vary widely depending on where you live. Thanks to a relatively lower cost of living and favorable prices on everyday goods, residents in many parts of the country enjoy more purchasing power than people in other states.

In Texas, for example, that same $100 will stretch further than in states like Massachusetts and Florida. In fact, according to Go BankingRates, the real value of $100 in Texas is $102.83, meaning your money, like most things in the state, is bigger here than in most other places. The extra $2.83 might not seem like much, but amid continued inflation and rising living costs, small differences can add up. Even a slight boost in purchasing power can give families some breathing as they try to stay ahead in an increasingly expensive world.

Texas residents get more bang for their buck thanks to lower housing and essential goods costs compared to many other states. Housing, which is one of the biggest expenses in anyone's budget, is a lot less expensive than the national average. According to the Federal Reserve Bank of St. Louis, the median home listing price in Texas is $375,000, compared with the national median of $416,900. The average rent is also significantly low in Texas at $1,460 compared to the national average.

But it's not just housing, everyday essentials like groceries, transportation, and health care also tend to cost less in Texas. According to RentCafe, the state's cost of living is 5% lower than the national average. And according to Go BankingRates, Texas residents pay an average of $44,989 in living expenses. That may sound like a lot but in a state like California, that cost is nearly double at $86,408. When both big and small expenses add up to Less, Texans find that their $100 stretches a bit further, easing the pressure of inflation and helping families keep more money in their pockets each month.

While Texas may not have the largest economy in the country, it consistently ranks near the top as one of the best places to live for retirees and budget-conscious individuals. Unlike many other states, Texas has no state income tax, which allows residents to take home more in their paychecks, which can be a major factor when it comes to cost of living. In comparison, California has a variable income tax rate ranging from 1% to 12.3%. There, $100 gets residents only $87.42 worth of purchasing power.

In addition to tax benefits, Texas continues to invest in housing initiatives as its population grows, and more people look to move to the state. Through several city-led initiatives, there has been an increase in affordable housing supply and other benefits like down payment assistance. These initiatives have further helped stabilize housing costs in Texas and have made it an attractive destination for people looking to stretch their budgets.