Cost of Comfortable Living in Texas Soars: Report Finds Big Gap Between Income and Expenses

DALLAS, TEXAS – Living comfortably in Texas is becoming increasingly out of reach for many residents, according to a new report by financial analytics firm SmartAsset. The study reveals that soaring costs across essential categories are outpacing incomes in much of the state — and Dallas is no exception.

To live what the report defines as a “comfortable” lifestyle, an individual in Texas now needs to earn about $90,000 a year. For a family of four, that number jumps to an eye-watering $204,000. That’s well above the current median household income in Dallas, which sits at $74,350, highlighting the growing strain on working families trying to keep up.

The study is based on the 50/30/20 rule — a popular budgeting guideline that allocates 50% of income to needs like housing, food, and transportation; 30% to wants such as dining and hobbies; and 20% to savings or debt reduction. Using data from the Massachusetts Institute of Technology’s Living Wage Calculator, the report factors in local costs of housing, childcare, transportation, and food to build a picture of what “comfortable” truly means in today’s economy.

For many Texans, that picture is looking increasingly bleak.

Since just last year, the report found that an individual needs $5,800 more per year to keep up with rising prices. A family of four must bring in an additional $9,360 compared to 2024. The rapid pace of inflation across essentials is leaving many struggling to maintain financial stability, let alone set money aside for emergencies or retirement.

Food costs alone have surged by about 23% from 2020 to 2024, according to the U.S. Department of Agriculture — a leap that’s left families recalibrating grocery budgets, cutting back on extras, and seeking more affordable options where possible. For those with children, childcare expenses add yet another layer of financial pressure.

Housing has also become a central concern. While home prices in Dallas-Fort Worth have leveled off compared to other metro areas — rising only around 3% last year — rental prices remain a major burden. Nearly 25% of renters in Dallas spend over half their income on rent, while roughly half exceed the 30% threshold that federal guidelines consider “cost-burdened.”

And yet, there is a small glimmer of relief on the rental front: the median rent for a one-bedroom apartment in Dallas has dropped by roughly 10% over the past year, now averaging about $1,350. But that drop may not be enough to offset other rising expenses, particularly for households already stretched thin.

Texas still falls somewhere in the middle when compared to other U.S. states for overall affordability. Hawaii, Massachusetts, and California rank as the most expensive, while states like West Virginia, Arkansas, and South Dakota come in as the most affordable. But for a state that once sold itself on low living costs and economic opportunity, the rising financial demands mark a dramatic shift.

Previous localized studies echo SmartAsset’s findings. Earlier this year, the same firm reported that Dallas residents specifically need just under $96,000 per year — or $213,000 for a family of four — to live comfortably. That puts Dallas slightly above the statewide average and highlights how city living continues to carry a premium.

The implications are significant. As inflation, housing shortages, and stagnant wages collide, more Texas residents are feeling squeezed. For younger people, the dream of homeownership or financial independence feels increasingly out of reach. For working families, budgeting often becomes an exercise in compromise — one that can erode quality of life and long-term stability.

Policy experts and community advocates stress the need for action: expanding affordable housing, addressing wage gaps, and increasing access to childcare and healthcare services. Without intervention, the divide between income and comfort may continue to grow, leaving many Texans with difficult choices.

For now, as prices continue to climb, the message is clear: the cost of living comfortably in Texas has never been higher. And unless economic conditions improve, or bold steps are taken, more residents may find that a “comfortable” life is something they can no longer afford.