Cheapest Homes in Texas
The current state of the economy has had plenty of down sides, but for
those who wish to purchase a home, there has never been a better time; homes
are being sold at considerable discount, and the cheapest homes are often
the best deals. Texas has several advantages over other states when it comes
to cheap housing; size, location and the cost of living.
Why Are Texas Homes Cheap Right Now?
Homes all over the country are being sold at remarkably low prices. The
sub-prime mortgage crisis resulted in a large number of property owners
defaulting on their loans in the past couple of years. With more homes on
the market, the prices naturally drop. It doesn’t take a genius to figure
out that if you can afford to buy right now, you should.
There are several sources for cheap homes.
- Foreclosures – these are homes that have been taken back by the bank
due to unpaid mortgages.
- Short sales – these homes are being offered at less than what the
owner owes on their mortgage just to get rid of the debt. The bank has
to agree to the sale.
- An excess of properties currently on the market
- Rural areas with a low cost of living
Factors in Finding a Home
There are always specific concerns each homebuyer has regarding location
and services. It makes no sense to find a cheap home that is 100 miles from
your job or to purchase a home that is cheap because it is in bad condition
or a dangerous neighborhood. With those criteria in mind, let’s look at
areas in Texas where you can find cheap homes, without sacrificing quality.
Texas Urban Centers
has plenty of large cities; Houston, Dallas-Fort Worth, San Antonio and
Austin, not to mention several moderately sized cities as well. Generally
speaking, homes in and immediately around large cities are more expensive.
The concentration of jobs and resources raises the cost of living and the
prices of homes because they are viewed as more desirable. There is an
exception to this “rule” though – foreclosures.
- Houston – In Houston proper you can purchase a 4 bedroom, 2.5
bath home for just over $100,000 if you are willing to go to the
auction. Comparable homes, not being sold at auction are priced between
30-80% more. If you win a home in auction you must be able to prove you
have your mortgage all arranged, but the savings make it more than worth
while. The reasons this home is so cheap is because the bank is simply
trying to make back its costs – you are essentially getting the previous
owners’ equity free of charge.
- Fort Worth - Fort Worth is considered to be the least
expensive city in Central Texas, so if you must live in a central city,
and you want cheap housing, this is the place to go. Twinned to Dallas,
this city offers many of the benefits of the larger city, but with much
lower costs. The median home price is $115, 000. This city has a
population of over 750,000 people and plenty of big town life.
- Dallas – Next door to Fort Worth, Dallas has a much higher
cost of living. Homes average $166,000, considerably more, but you can
still find cheap homes if you are willing to look at short sales and
foreclosures. Your best bet though, is to move out of the city limits.
- Austin – Showing a small drop from the previous year, the
average home price in Austin is $187,500. Generally acknowledged to be
the most expensive of Texas’ cities, you want to avoid Austin if you are
looking for cheap homes.
Cheap Texas Homes Outside the Big Cities
Clearly, once you head out of the big cities, prices start to drop. As
long as you don’t mind commuting, or can work from home, some of the best
bargains are to be found here.
Cheapest Homes in Central Texas – Stay close to some cities and still
enjoy a small town welcome.
- Paris – Not far from Dallas, this little town has a much
slower pace of living. Houses are also a lot more affordable, with an
average price around $80,000. With a strong economic center nearby,
Paris is an ideal place for someone who wants small town living with
convenient access to action.
- Seguin – Not unlike Paris, Sequin is close to a metropolitan
center – San Antonio, which is only 40 minutes away – a completely
reasonable commute. With the distinction of possessing the “worlds best
barbeque” homes here average $115,000.
- San Angelo – The Green Movement is coming to Texas, and San
Angelo is right in the center of it all. Wind generated power will make
or break this location. If the wind boom that central Texas is expecting
takes off, this is where it will happen. About 90 miles from Abilene and
a great deal further from any big city, this little town offers houses
at an average of $139,000.
Cheapest Homes in Western Texas – Big Bend, the Chihuahuan Desert and a
few bustling cities in the middle of wild and rugged country.
- Pecos – With approximately 8,000 residents, this small town
offers real housing bargains. The median house price is just under
$25,000, and growth is projected for about 35% by 2020. With living
expenses only 65% of the national average, a little goes a long way
- Monahans – This little oil town sports exceptional schools
and a growing economy – a real boon in our current recession. Home
prices average just under $40,000, making a nice home quite cheap,
especially when compared to prices in the cities.
- Terrell County – Located on the border with Mexico, this
entire county offers isolation and cheap living. If wide open spaces,
ranching and independence appeal to you consider this area where homes
average only about $30,000. The school system spends considerably more
per student than the national average, ensuring a good education for any
children you might have.
- Van Horne – With a relatively low cost of living and a median
home price of $38,500 the town, the seat of Culberson County, offers
plenty of land if you want to design and build your own home. 2 hours
east of El Paso, this town have plenty to offer in the way of cheap
- El Paso – The biggest city in this part of the state, El Paso
offers jobs, nightlife and more to those who just can’t get enough of
urban life. Even so, homes in El Paso are consistently cheaper than
those in other large cities in Texas. Expect to save 6-16% over homes in
Dallas, Austin or Houston.
Cheapest Homes in Northern Texas - Slightly cooler than the lower part
of the state, Amarillo offers city living and there is a lot of ranch
country once you leave the city. Getting truly cheap, isolated land is
difficult, but there are plenty of small towns nearby. Homes average
- Lubbock – Home to Buddy Holly, Lubbock is a friendly, warm
town that is home to several universities. The average price of a 3
bedroom, 2 bath house is only $77,000. You can just about pay cash for
your home if you head here from one of the big Eastern cities.
- Claude – About 30 minutes from Amarillo, this town has a
median house price of $112,000. This is the seat of Armstrong County and
has a rich and diverse history.
- Hereford – A bit further away, Hereford offers great housing
at much cheaper prices. With the average home price at $70,000 you can
find a variety of single family homes, townhomes or mobile homes to suit
your needs at a price you can easily afford.
A Few Final Thoughts about the Cheapest Homes in Texas
No matter where you choose to settle, finding the cheapest homes involves
a bit of work and self reflection. Consider the following aspects of home
- Are you willing to live in a completely rural environment? Homes
will be cheaper, but they can also be very isolated. For young children
this can be challenging, and work can be difficult to find.
- What kind of medical services do you need? If you have significant
medical issues living several hours from a major medical center can be a
bad idea. Fortunately, there are plenty of cheap homes in and around
- How do you feel about buying a foreclosure? These are some of your
best bargains when it comes to living near or in a city. If you are
comfortable profiting from someone else’s poor choices these homes are a
real bargain. Keep in mind that sometimes, angry homeowners trash their
former residence, so make sure to thoroughly inspect any property you
- Are you only willing to consider single family homes or perhaps a
mobile home, a condo or a townhome will meet your needs just as well?
Single family homes are traditionally the most expensive of these, and
one way to save more money is to purchase one of the new, well built
modular homes currently available.
Texas is known for its low cost of living and for not having state income
tax, although property taxes can be high depending upon where you settle.
This state is a great resource for those who are looking for cheap homes to