Is Dallas an Affordable Place to Live in 2025? Let’s Break It Down!

If you're considering moving to Dallas, Texas, one of the biggest questions on your mind is probably, "Is it affordable?"The short answer? It depends. If you’re coming from a place like Los Angeles, New York, or even Austin, Dallas might feel like an absolute steal. But if you're relocating from a smaller town or a more rural area, the cost of living might surprise you.

As a local Texas realtor, I’ve worked with people from all over the country who are trying to figure out what life in Dallas will look like for them. So in this post, I’ll break down everything you need to know. Housing, food, transportation, daycare, entertainment, and more, so you can decide if Dallas is the right move for you.

First Things First: No State Income Tax (But There’s a Catch)

One of the biggest perks of living in Texas is that we don’t have a state income tax. That’s right, zero. If you’re used to having a chunk of your paycheck disappear to state taxes, you’ll immediately feel the difference once you start earning here.

However, there’s a catch. Because Texas doesn’t collect state income tax, it makes up for it in other ways, mainly through property taxes. More on that in a bit!

Housing: You Get More for Your Money, But It’s Getting Pricier

If you’re moving from California, New York, or Chicago, you’ll be shocked at how much home you can get for your money in Dallas. The cost per square foot here is much lower than in major coastal cities, meaning you can afford a bigger house with more land.

But don’t get me wrong. Dallas isn't dirt cheap either. The market has been booming, and home prices have gone way up in the past few years. Here’s a general breakdown of what you can expect:

Affordable Suburbs (Under $400K): Forney, Kaufman, Mesquite, Lancaster
Mid-Range ($400K - $700K): McKinney, Frisco, Prosper, Rockwall
Luxury Homes ($700K+): Highland Park, University Park, Southlake

I’ve toured some stunning homes in Frisco and Prosper that are modern, spacious, and packed with amenities, but they’re not exactly budget-friendly. On the other hand, smaller suburbs like Forney and Mesquite offer brand-new construction homes at much lower prices.

So if homeownership is a priority, Dallas is still a great place to buy, but it depends on where you look.

Property Taxes: The Big Downside

Remember when I said Texas doesn’t have a state income tax? Well, our property taxes make up for it.

Property taxes in Texas are higher than the national average, usually hovering around 2-2.5% of your home’s value. For example, if you own a $500,000 home, you could be paying $10,000 - $12,500 per year just in property taxes.

When I built my home here, I was excited about no state income tax, but when that first property tax bill rolled in, I definitely felt it.

If you're planning to buy in Dallas, always factor in property taxes when budgeting your home purchase. The good news? Some areas offer homestead exemptions that can lower your tax bill, so make sure you ask about that!

Daycare & Childcare: Not Cheap, But Not the Worst

If you have kids, you’ll definitely want to budget for daycare or after-school programs. The cost of childcare in Dallas is not as outrageous as New York or California, but it’s still a big expense for families.

Here’s what you can expect:

Daycare (Full-Time, Per Child): $850 - $1,300 per month
Preschool Programs: $700 - $1,200 per month
After-School Care: $300 - $600 per month

One of my clients was shocked when they saw their first daycare bill—they joked that they were basically paying rent for their toddler! And honestly, they weren’t wrong. Daycare can be as expensive as renting a small apartment, so be prepared for that if you have little ones.

Food & Grocery Costs: Surprisingly Reasonable

Compared to other major cities, grocery prices in Dallas are pretty reasonable. If you love cooking at home, you’ll be happy to know that Texas is home to H-E-B, the best grocery store hands down. If you haven’t been to an H-E-B yet, just know that Texans take their grocery shopping VERY seriously—people will literally camp out overnight when a new store opens!

Here’s a rough idea of grocery prices:

Milk: $3.50 per gallon
Eggs: $4 per dozen
Chicken Breast: $3.50 per pound
Bread: $3 per loaf

Eating out? Dallas has tons of amazing restaurants, from cheap taco joints to high-end steakhouses, so food costs can really vary depending on your lifestyle. A typical meal at a mid-range restaurant will cost about $15-$20 per person, while a fancy dinner can easily be $50+ per person.

Gas & Transportation: You Need a Car, But It’s Not Too Expensive

If you’re moving to Dallas, you NEED a car. Public transportation here is pretty much nonexistent, and most people rely on their vehicles to get around.

Gas prices fluctuate, but on average, they sit around $3.00 - $3.50 per gallon. If you’re coming from California, this probably sounds like a dream, but if you’re from a smaller town, you might find it a bit expensive.

Also, be ready to pay for toll roads. The Dallas North Tollway and George Bush Turnpike can add up fast, especially if you’re commuting daily.

Entertainment & Things to Do

One thing I love about Dallas is that you’ll never run out of things to do. Whether you’re into sports, concerts, festivals, or outdoor adventures, there’s something for everyone.

Some popular activities:

Dallas Cowboys & Mavericks games
Live music in Deep Ellum
Rooftop bars in Uptown
Lake days at White Rock Lake or Lake Lewisville
Weekend road trips to Austin or Waco

Most entertainment costs here are reasonable, but high-end nightlife and exclusive venues can get pricey.

Final Verdict: Is Dallas Affordable?

Dallas is more affordable than most major cities, but it’s not as cheap as it used to be. Housing, groceries, and gas are relatively reasonable, but property taxes and daycare costs can hit your wallet hard.

If you’re moving from a high-cost-of-living area, you’ll probably love the affordability here. But if you’re coming from a small town, Dallas might feel expensive at first.

Overall, Dallas is a great place to live, work, and invest in real estate, and it’s still one of the best-value metro areas in the U.S.

Thinking about moving to Dallas? Shoot me a message! I’d love to help you find the perfect home!

Post written by Michael Stephens from Living Local Texas.