Is Texas (DFW) REALLY cheaper to live? (Dallas, Austin: HOA fees, homeowners insurance)

[skids929]

I am starting this thread in hopes of stirring up a more current conversation about how Texas, DFW specifically, really stacks up to other more expensive regions of the country. Northeast in particular..

I live in MA, have Family in DFW, and family getting ready to move there. Let's just say I have done alot of long-term research on the market, and like it alot and would consider a move. But the one very important detail I am discovering in my comparitive analysis to where I live now, is it's not really cheaper for me to live there!

My overall tax burden here (property/stateincome) totals about $12k. When I compare Texas to that, by the time I factor in property taxes, increased cost in homeowners insurance, and auto insurance, higher tolls, electric bills, HOA fees, the cost of Texas doesn't really seem to be as attractive.


I would like to know:

1) what am I missing-I ask this because EVERYONE seems to start out being oversimplistic and thinking it's cheaper to live in Tx

2) solid examples from folks who moved from high cost areas how they saved by moving to Texas- acutal numbers are helpful.

[jdallas]

I honestly don't know anyone who has moved here to save money. There are lots of other reasons like a healthy job market, plentiful housing, or convenient transportation hubs. You might want to look into the top states for retirement if lowering your expenses is your motivation for relocating. Texas doesn't even make the top 10 in the latest CNNMoney report.

[skids929]

Originally Posted by jdallas

I honestly don't know anyone who has moved here to save money. There are lots of other reasons like a healthy job market, plentiful housing, or convenient transportation hubs. You might want to look into the top states for retirement if lowering your expenses is your motivation for relocating. Texas doesn't even make the top 10 in the latest CNNMoney report.

This report?

25 Best Places to Retire - Austin, TX (5) - Money Magazine


Austin makes number 5.

[Rakin]

So much of this depends on the Lifestyle you're accustomed to living and where you want to live.

I can live in Sherman very simply or I can live in Highland Park and run with the big dogs.

But most people I work with from MAJOR Northeast cities, DFW is cheaper. If you're in North Attleboro Mass., it may not be any cheaper.

[BigDGeek]

I think the overall tax burden is lower, and housing costs on average are much lower. I can't buy anything decent in Boston (or a 10 mile partial circle around it) for the same amount as what I paid for mine here.

[jcl_cls02]

FWIW, my auto insurance is way lower here once I moved here from the NE. Groceries is more here when comparing. Groceries are cheaper if you go to the cheaper super markets like Fiesta.

[aggieplaya]

You need to give more data in order to analyze the situation.

What is your home value? Property tax for the home alone?

Texas > MA in the state income tax category as we have none

HOA fees do not apply everywhere, so that depends on where you buy. Many places are $600/yr or less though, so I wouldn't think that is much of a factor in the grand scheme and that shouldn't be very relevant in the grand scheme

[EDS_]

State and Local Tax Burdens: All States, One Year, 1977 - 2010 | Tax Foundation

My guess is your tax analysis is off. Overall taxes in Mass are much higher. Although it is possible your particular situation does not hold across the masses.

Much of ones overall tax burden, especially in high tax states like Mass is somewhat hidden in various ways like high business taxes that are 100% passed on to the consumer in the form of higher prices, high gas taxes, high fees and taxes on utilities etc. Also high tax states tend to clump together so one ends up paying lots of difficult to detect taxes into neighboring states. Depending upon slop factors Mass is 6/8th worst in terms of high taxes - Texas is 40/43rd.

I have link at home that parses out various relative costs foods/rent/gas/healthcare etch from city to city. I'll DM that to you tonight.



ETA -
Ex of taxes COL between Boston and Dallas, the best comparison I could find on the fly, Dallas is 30% less expensive. Including taxes the gap would be wider.

Dallas is less across all of the "big five" costs:
Groceries -15%
Housing -53%
Utilities -27%
Transportation -2%
Healthcare -14%

[ChristieP]

Not all of us in DFW pay tolls or HOA fees. You choose whether or not to pay those expenses by where you decide to live.

[HockDad]

Don't forget schools. Are you going public v. private route? DFW has numerous good public school districts. If you are going private, you will also likely find that our comparable private schools are cheaper (or just not quite as expensive...).