On an index of 100, Texas is marked at 93.9 which makes Texas cheaper than many other states in the U.S. Housing has a significant effect on the cost of living. The median price of a home in the state is $195,000 which is very low compared to other states. Transportation in this state is costly and each city may differ in cost of living. Therefore living in a certain part of Texas may be more affordable or more expensive depending on the area.