How Much Money You Need To Make In A Year To Buy A House In Texas

As the saying goes, "Everything is bigger in Texas." And when talking about how much you need to earn in order to avoid being house poor, that is certainly true. According to a study by Realtor.com, you need a household income of $105,868 per year to comfortably afford owning a home in Texas. That figure factors in a 6.93% mortgage rate for a 30-year loan, insurance, property taxes, and a 10% down payment. By comparison, as per the National Association of Realtors, the median price of a home in the U.S. as of September 2025 is $415,200. This aligns with data, courtesy of Redfin, that found home prices have increased in the last year by 1.4% as of October 2025. Given Realtor.com's study is using data from December 2024, that could mean the current cost of owning a home in Texas could be a slight percentage higher than the Realtor.com estimate, though still likely somewhere in the low-six-figure ballpark.

According to the United States Census Bureau, the median household income in the U.S. was $83,730 in 2024 — around $20,000 less than the necessary income for a Texas homeowner. Meanwhile, there are states where residents need to earn considerably less per year to afford a home. West Virginia is the cheapest at $73,327 — though it's also considered one of the worst states to live in despite its affordable housing. So, what forces are putting Texas on the pricier side these days?

According to a December 2024 report by Realtor.com, the median home price at the time of that necessary earnings study was $402,502. Meanwhile, the most expensive state to own a home is Hawaii, requiring an annual household income of $235,588. While Texas doesn't quite hit that ceiling, it still isn't what could be considered cheap for people with household incomes below $105,858.

One of the major reasons retirees regret moving to Texas, as per SmartAsset, is high property taxes. Texas happens to have the seventh highest property tax rate of any state in the U.S. Although there is no state tax on property, the average county tax rate works out to an estimated 1.63%, representing an average property tax bill of around $6,549 per year for a median-priced Texas house. This is another factor to consider before making the move to Texas, and points to the need to do a little research on counties with the lowest property tax rates before making the move. For instance, retirement-age Americans could find a number of charming places in Texas where retirees could live on Social Security alone. For working Americans, there are still underrated cities in Texas with affordable costs of living and homes priced considerably below the national median. Knowing where to find them could make all the difference to your bank account.