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

Cheapest Homes in Texas Texas 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 here.
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 housing.
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 $136,000.

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 choice.

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 major cities.
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 considering.
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 buy.