Dallas is the third-largest city in Texas, known for its barbecue, authentic Mexican, and Tex-Mex cuisine. Dallas features many arts centers and museums, including the Dallas Museum of Art, the Morton H. Meyerson Symphony Center, the Perot Museum of Nature and Science, and the Nasher Sculpture Center. Dallas is home to a number of Fortune 500 companies, including AT&T, Energy Transfer Equity, Tenet Healthcare, and Southwest Airlines. Dallas is also a hub for tech companies such as Texas Instruments, Nortel Networks, and Cisco Systems. Five major league sports teams are located in Dallas: the Dallas Cowboys (National Football League), the Dallas Mavericks (National Basketball Association), the Texas Rangers (Major League Baseball), the Dallas Stars (National Hockey League), and FC Dallas (Major League Soccer).
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Dallas Cost of Living
The cost of living in Dallas is based on several factors, including the size of your household, the neighborhood you live in, and your overall lifestyle. This guide will help you determine if Dallas is an affordable place for you to live.
Cost of Living Index
The Dallas cost of living index is based on the national average, which is set at 100. Cities that have a cost of living of 95 are 5% less expensive to live in than the average. Cities with a cost of living index of 105 are 5% more expensive to live in. The cost of living index is made up of housing, healthcare, groceries, utilities, transportation, and other costs. By comparing the cost of living index in Dallas to where you’re currently living, you can see how affordable Dallas will be for you.
The average cost of living in Dallas TX is 97, which is 3% below the U.S. average. Housing costs are 18% lower; however, the cost of goods and services is 7% higher. The highest costs in Dallas are healthcare (12% higher than the national average) and utilities (10% higher).
Consumer Price Index
The Consumer Price Index (CPI) is used by the Bureau of Labor Statistics (BLS) to measure the average change over time in the prices paid by urban consumers for goods and services. The Consumer Price Index for the Dallas-Fort Worth-Arlington Metro Area rose 0.8% in April and May of 2023 and 4.7% over the past year. The index for all items except food and energy rose 7.0% over the last 12 months. Food prices rose 8.2%, and energy prices fell 17.5%, mainly due to declining gas prices.
Consumer Expenditures Survey
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The Consumer Expenditure Surveys (CE) is maintained by the BLS and provide data on expenditures, income, and demographics of consumers in the United States, making it a great resource to find out the Dallas cost of living. The Interview Survey, for major and/or recurring items, and the Diary Survey, for more minor or frequently purchased items, make up the CE.
According to the Consumer Expenditures for the Dallas Metropolitan Area — 2020-2021, households spent an average of $62,672 per year, slightly lower than the national average of $64,187. Housing was the largest expenditure for Dallas-area households, averaging $22,896 or 36.5% of the household budget. The U.S. average was 34.3%. Dallas-area households spent 17.5% of their budget on transportation, only a little higher than the national average of 16.2%. Households in Dallas spent 12.8% of their budget on personal insurance and pensions compared to the national average of 11.8%. Food expenditures made up 9.6% of the average household’s budget in the Dallas area, lower than the national average of 12.2%.
Family Budget Calculator (Economic Policy Institute)
The Family Budget Calculator on the Economic Policy Institute (EPI) website can be used to estimate the income a family needs to keep up with Dallas’s living expenses. It is based on one of 10 family types (one or two adults with zero to four children). The cost of living in Dallas for a single person will be much less than for a family.
However, the family budget calculator is still a great way to check the cost of living in Dallas Texas. The average expenses for a family of 2 adults and 2 children living in the Dallas Metro Area are $6,851 per month or $82,216 a year. Here is the breakdown of monthly and annual costs:
|Monthly Cost||Annual Cost|
Cost of Household Items, Food, & Groceries in Dallas
The chart below shows the estimated amount you will need to spend on common household items, food, gas, utilities, and other expenses that make up the cost of living index for Dallas.
|Steak Ribeye, 1lb.||$11.96|
|Milk Whole 1/2 Gal.||$2.29|
|Eggs 1 Dozen, Grade A||$1.34|
|Potatoes 5 lb bag||$3.91|
|Bread Wheat, 1 loaf||$3.51|
|Beer Heineken’s 6 pack||$10.21|
|Movie Ticket 1st Run||$13.02|
|McDonald’s Burger 1/4 Pounder||$4.86|
|Average Cell Phone Bill||$188.86|
|Average Cost of Gasoline Per Gal.||$2.498|
|Average Cost of Utilities Per Month||$200.26|
Dallas Area Rapid Transit (DART) serves the Dallas–Fort Worth metroplex with DART Light Rail, Trinity Railway Express commuter rail, bus routes, GoLink on-demand services, and paratransit services. Fares are $2.50 per ride and a 50% discount for seniors, youth, persons with disabilities, and individuals who qualify based on income.
Dallas Real Estate Market
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The Dallas housing market is very competitive. Good news, the average home price in Dallas was down 5.3% in April 2023 compared to last year. The median home price in Dallas is $412,000. The Dallas real estate market is still hot, and homes sell after 25 days on average, compared to 15 days last year. By comparison, the average price for a home in Houston is $339,000. The median price for a home in Texas is $400,000.
The average apartment rent in Dallas is $1,577 for an 848-square-foot apartment. Average rent in Dallas can vary significantly depending on unit type, location, and number of bedrooms. If you’re not sure whether to buy or rent in Dallas, you can use the price-to-rent ratio to help with your decision. The calculated is:
Median Home Price ÷ Median Annual Rent = Price-to-Rent Ratio.
A higher ratio is better for renters, and a lower ratio is better for buyers. A ratio of 1 to 15 means it’s much better to buy than rent. A ratio of 16 to 20 means it’s typically better to rent than buy. A ratio of 21 or more means it’s much better to rent than buy.
The price-to-rent ratio in Dallas is: $412,000 ÷ $18,924 = 21.8
Based on the price-to-rent ratio, it’s better to rent than to buy in Dallas.
Dallas has some beautiful neighborhoods, excellent higher education opportunities, and a growing economy. Here are two of the best, safest, and most desirable neighborhoods to consider when moving to Dallas:
Timberbrook features large, beautiful homes for larger families. The neighborhood is very safe, with lots of walking paths and great schools nearby. Timber Brook Park is close enough to walk to. Other places to enjoy the outdoors in the area are the Collin Square green belt and Oak Point Park, and Nature Preserve. Homes sell for about $495,250 in Timberbrook.
Situated in the Old East Dallas area with a thriving restaurant and bar scene, Lower Greenville is a great neighborhood for college students and young professionals. Criswell College, Dallas Theological Seminary, and Texas A&M University College of Dentistry are just a few of the nearby schools. The short drive to downtown makes for a quick commute to work. The average price of a home is $735,000.
Dallas Rental Market – Average Rent in Dallas
The average size for an apartment in Dallas is 848 square feet, but this number varies depending on location, number of bedrooms, and unit type. The average rent in Dallas is $1,577 per month. You can find a variety of apartments in the city.
The most affordable neighborhoods in Dallas are:
- Arbor Ridge – $962/month
- Arbor Springs $962/month
- Casa Loma Estates $962/month
The most expensive neighborhoods in Dallas are:
- Brighton Lofts North – $3,112/month
- Brighton Lofts South – $3,112/month
- Grammercy Place – $3,112/month
The most popular neighborhoods in Dallas are:
- Uptown Dallas – $2,267/month
- Lake Highlands – $1,216/month
- Knox Henderson – $1,983/month
Out of Reach estimates the hourly wage in each state that a full-time worker must earn to afford a modest rental home without spending more than 30% of their income on housing. In Texas, if you earned the minimum wage of $7.25/hr, you would have to work 104 hours a week to afford a modest 1-bedroom rental home. If you spent approximately 30% of your income on rent, you could afford to pay $648 per month in rent, less than half of the average rental cost in Dallas.
Average Salary & Household Income in Dallas
The median household income in Dallas is $57,995. According to Payscale, the average salary in Dallas is $76,000 a year. Dallas wages increased by 1.3% in Q1 2023 from the previous quarter. The yearly wages for some of the most popular occupations in Dallas are:
- Software Engineer $86,731
- Project Manager $79,612
- Operations Manager $71,790
- Financial Analyst $65,120
Income, Sales & Property Taxes in Dallas
Here is some helpful Dallas tax information that you can use to compare to how much you’re currently paying in taxes where you live:
The state of Texas has no state income tax.
According to Sale-Tax.com, the state sales tax rate in Dallas is:
|Dallas County||0. 00%|
The Dallas property tax rate is, on average, 2.18% of the property’s assessed fair market value. Dallas County property taxes in Dallas are managed by the Dallas County Tax Assessor’s Office.
Dallas vs Houston Cost of Living
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The cost of living is 63% higher in Dallas than in Houston. Here are some comparisons of the average costs of groceries in Dallas vs Houston, housing, healthcare, and the average cost of utilities in Dallas and Houston.
Dallas is a fairly affordable city to live in, with an overall cost of living 3% lower than the national average. With great, family-friendly neighborhoods, plenty of higher education options, good schools, and a thriving job market, Dallas is an excellent place to call home. When you’re ready to call this city home, call the best Dallas movers at Brothers Moving at 469-772-4708 for your free moving estimate!