The 11 Cheapest Places in Texas to Buy a House

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Malcolm-Wiley Floyd

Aug 23, 2023

CEO and Co-Founder of Stairs Financial, a YC-backed startup that connects first-time home buyers with down payment assistance programs across the US. Malcolm-Wiley studied economics at Harvard and is a licensed mortgage broker.

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    If you’re moving to Texas, there’s a good chance affordable housing is high on your list of reasons to relocate. But when it comes to home prices, not all cities in the Lone Star State were created equal.

    Texas as a whole has some of the most reasonable median home prices in the country. But as you’d expect, the housing market is hotter in some parts of the state than in others. 

    We’ve sorted through the data to find the cheapest places in Texas to buy a house, so you can move one step closer to becoming a homeowner.

    Down payment assistance makes buying in Texas even more affordable

    Even if you get a great price on your house, a down payment is still a big expense. Down payment assistance helps you cover these upfront costs when you buy a home in Texas.

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      Disclaimer: This article is for informational purposes only and should not be considered as legal or financial advice. Please consult an attorney, mortgage lender, or CPA for guidance on your specific situation.

      What is the cheapest place in Texas to buy a house? The frontrunner

      Amarillo is the absolute cheapest place in Texas to buy a house. The median home price is $196,429, the cost of living is well below the national average, and the parks and amenities in town are quite robust. There are plenty of employment opportunities, and the schools rank above average.

      Cheapest houses in Texas: A city-by-city list

      Amarillo might be the most affordable housing market in the state, but you have plenty of other options to choose from as well. We’ve included information on the 11 cheapest places to buy a house in Texas, as well as how each place stacks up to the state and national average.

      CityMedian Home Price*Population
      Amarillo$196,429200,371
      Dellview$201,04127,222
      Pasadena$214,720151,964
      Killeen$225,610156,261
      Tyler$255,414104,945
      San Antonio$263,7471.452M
      Garland$301,832245,075
      Oak Ridge North$337,8533,043
      Red Oak$343,02413,956
      Brookside Village$368,5411,439
      Woodway$381,8809,310

      *Median home prices as of July 31, 2023

      1. Amarillo

      Amarillo is a medium-sized northern Texas town with a population of around 200,000. Its central location, on the route between Albuquerque and Oklahoma City, gives Amarillo a robust employment market. The local schools are above average, and there are several parks in town, along with a handful of lakes within day-trip distance.

      Median home price: $196,429

      How Amarillo stacks up

      Housing prices in Amarillo are well below both the median price in Texas and the nation as a whole.

      Can you afford to buy in Amarillo?

      Your estimated mortgage payment for a median-priced home in Amarillo is $1,441*. Based on this number, you would need to make at least  $4,117 per month to comfortably buy a home in Amarillo**.

      *Throughout this article, when we list monthly mortgage payments, we base our figures on a 30-year mortgage with a 20% down payment and an interest rate of 7.25%. We also include monthly property tax and homeowner’s insurance payments, based on average costs for the area. 

      **Based on a front-end ratio of 35%. 

      Most loan programs have a target front-end ratio of 35%. This means that you have the best chance of qualifying for a mortgage if your housing expenses make up no more than 35% of your gross monthly income. 

      There is often some flexibility around this number, and some lenders may accept a higher front-end ratio based on the loan program or other compensating factors, but for the purposes of this article, we set the bar at 35%.

      2. Dellview

      Dellview is a suburb on the northeast side of San Antonio The area is bordered by three large parks, woodland trails, and the San Antonio Zoo. The commute into San Antonio is quick, the area has above average public schools, and you could easily take advantage of all the San Antonio amenities without driving far.

      Median Home Price: $201,041

      How Dellview stacks up

      Dellview is a very affordable city. Housing prices are well below both the Texas and national median home prices.

      Can you afford to buy in Dellview?

      Your estimated mortgage payment for a median-priced home in Dellview is $1,475. Based on this number, you would need to make at least $4,214 per month to comfortably buy a home in Dellview.

      3. Pasadena

      Pasadena is located on the southeast side of Houston, bordered on the north by the Buffalo Bayou and the Trinity Bay on the south. The commute into Houston is a short, straightforward trip along route 225. 

      Pasadena has above-average schools and plenty of family friendly activities, thanks to the nearby waterfront and Houston metro area.

      Median Home Price: $214,720

      How Pasadena stacks up

      Pasadena housing is significantly less expensive than the average for Texas and the nation. The affordability of home prices in the area is even a little surprising, given the location.

      Can you afford to buy in Pasadena?

      Your estimated mortgage payment for a median-priced home in Pasadena is $1,570. Based on this number, you would need to make at least $4,485 per month to comfortably buy a home in Pasadena.

      4. Killeen

      Killeen, Texas is located a little over an hour north of Austin. There are several parks in town and two lakes nearby. Even though Killeen isn’t one of the major cities in Texas, there are many employment opportunities in the city’s healthcare, education, and construction sectors.

      The local public schools are above average, and Temple College is a thirty-minute commute from town. 

      Median Home Price: $225,610

      How Killeen stacks up

      Killeen housing is notably more affordable than both the Texas and national median home prices. When you take into account the total cost of living, Killeen is also one of the most affordable cities in Texas, overall.

      Can you afford to buy in Killeen?

      Your estimated mortgage payment for a median-priced home in Killeen is $1,647. Based on this number, you would need to make at least $4,705 per month to comfortably buy a home in Killeen. 

      5. Tyler

      Tyler is located about an hour and half southeast of Dallas. The city’s main employment industries are agriculture and energy production. The town has a handful of public parks and is surrounded by woodland and lakes. Tyler has above average public schools and a local university.

      Median Home Price: $255,414

      How Tyler stacks up

      Housing in Tyler is quite affordable compared to both the Texas and national median home prices.

      Can you afford to buy in Tyler?

      Your estimated mortgage payment for a median-priced home in Tyler is $1,855. Based on this number, you would need to make at least $5,300 per month to comfortably buy a home in Tyler.

      Buying a home in Texas? Learn more

      Looking for more information about buying a home in Texas? Stairs Financial can connect you with down payment assistance programs and trusted mortgage lenders in your area. 

      6. San Antonio

      San Antonio is one of Texas’ major cities, but it’s impressively affordable for a metro area. Life in San Antonio is a bit more urban than some of the other affordable cities on our list, but that comes with plenty of employment opportunities.  

      San Antonio schools are above average and there are a good number of family friendly attractions, like SeaWorld and Six Flags. 

      Median Home Price: $263,747

      How San Antonio stacks up

      San Antonio is easily the most affordable major metropolitan area in Texas. Median housing prices are lower than both the state and national average.

      Can you afford to buy in San Antonio?

      Your estimated mortgage payment for a median-priced home in San Antonio is $1,914. Based on this number, you would need to make at least $5469 per month to comfortably buy a home in San Antonio. 

      7. Garland

      Garland is a township that borders Lake Ray Hubbard and Richardson, TX. Richardson made it onto our list of the best places to live in Texas for families, and Garland is quite similar in terms of its amenities. 

      The city is within a short commute of Dallas, the schools are highly rated, and there are plenty of parks and family activities nearby.

      Median Home Price: $301,832

      How Garland stacks up

      Garland home prices are on par with the state median, which is roughly $50,000 lower than the national median.

      Can you afford to buy in Garland?

      Your estimated mortgage payment for a median-priced home in Garland is $2,181. Based on this number, you would need to make at least $6,231 per month to comfortably buy a home in Garland. 

      8. Oak Ridge North

      Oak Ridge North is a small town, but it’s close enough to Houston that many consider it to be a Houston suburb. Oak Ridge North is bordered by Lake Woodlands and there are nature preserves and outdoor recreation areas surrounding the city. 

      Schools in the area are very highly rated, and there are several colleges and universities to choose from in nearby Houston.

      Median Home Price: $337,853

      How Oak Ridge North stacks up

      The median home price in Oak Ridge North is slightly lower than the national average. However, housing prices in the area are a bit more expensive than the Texas median.

      Can you afford to buy in Oak Ridge North?

      Your estimated mortgage payment for a median-priced home in Oak Ridge North is $2,433. Based on this number, you would need to make at least $6,951 per month to comfortably buy a home in Oak Ridge North. 

      9. Red Oak

      Red Oak is a suburb southeast of Dallas. The commute into Dallas is simple and relatively short. The Oak Leaf area itself is a bit sparse on parks and family activities, but it is surrounded by public lands and a large network of trails. 

      The local schools are above average, and there are several colleges within driving distance.

      Median Home Price: $343,024

      How Red Oak stacks up

      Home prices in Red Oak are higher than the state median, but still slightly below the national median, so the area still offers a lot of value, especially if you’re moving from out of state.

      Can you afford to buy in Red Oak?

      Your estimated mortgage payment for a median-priced home in Red Oak is $2,470. Based on this number, you would need to make at least $7,057 per month to comfortably buy a home in Red Oak. 

      10. Brookside Village

      Brookside Village is just south of Houston, close enough to take advantage of the city’s employment market. The town is surrounded by large public parks and it’s a short drive to the Trinity Bay. 

      There are several top rated schools in the area, and the University of Houston is within daily driving distance.

      Median Home Price: $368,541

      How Brookside Village stacks up

      Home prices in Brookside Village are more expensive than the Texas state median by about $70,000, but they are only slightly more expensive than the national median. For this reason, Brookside Village is still a deal for many home buyers. 

      Can you afford to buy in Brookside Village?

      Your estimated mortgage payment for a median-priced home in Brookside Village is $2,774. Based on this number, you would need to make at least $7,925 per month to comfortably buy a home in Brookside Village. 

      11. Woodway

      Woodway is a suburb of Waco, located on the south end of Lake Waco. The town offers plenty of employment opportunities in manufacturing, as well as in the food and beverage production industries. Baylor University is in nearby Waco. 

      Median Home Price: $381,880

      How Woodway stacks up

      Although median home prices in Woodway are above those in both the state and the nation, average incomes in the area are quite high. A household making the area median income of $8,790 per month could potentially carry a mortgage and still keep their housing costs relatively low compared to their income.

      Can you afford to buy in Woodway?

      Your estimated mortgage payment for a median-priced home in Woodway is $2,742. Based on this number, you would need to make at least $7,834 per month to comfortably buy a home in Woodway.

      Is Texas the cheapest state to buy a house?

      Based on median home prices, Texas is not the cheapest state to buy a house. It comes in at about the middle of the pack as the 20th least expensive state. However, Texas is large and there are many areas where the median home price is equal to, or even more affordable than, the states with the cheapest home prices. 

      Why is Texas housing so affordable?

      The affordable price of housing in Texas is largely attributed to low taxes on developers and builders, easy-to-navigate building codes, and inexpensive construction costs. Texas also has a lot of space, so there are plenty of opportunities for new construction to help meet housing demands and keep prices down.

      Get down payment assistance when you buy a home in Texas

      Even in the affordable Texas housing market, saving up a down payment can be tough, especially if you’re moving a long distance across the country or across the state.

      Down payment assistance (DPA) can help you make a larger down payment and cover closing costs to the tune of thousands or even tens of thousands of dollars. 

      Texas has a good number of DPA programs, but finding information about those programs has always been hard. Up until recently, there hasn’t been a good way to find the programs you qualify for, compare them, and work through the home purchase process with down payment assistance.

      Stairs Financial makes it easy to find and access down payment assistance. Stairs helps you connect with a qualified lender who knows how to buy houses using DPA, then matches you with programs you qualify for and lets you easily compare programs one-to-one. 

      Learn more about all your down payment assistance options.

      Find up to $15,000 towards a home 🏠

      Compare local down payment assistance and find a mortgage, fast.

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