Are Houses Cheaper in Texas or Georgia?

Understanding housing costs is a primary concern when considering a move. Home affordability often dictates where one can settle. While a general state-level comparison provides a starting point, many factors contribute to overall housing costs, requiring a deeper look into market dynamics. This analysis explores housing affordability in Texas and Georgia.

Overall Housing Market Comparison

The housing markets in Texas and Georgia experienced shifts in 2024 and 2025, influenced by mortgage rates and inventory. Georgia’s market saw the median sales price reach $360,000 in 2024, with the average sales price at $439,492. Its housing inventory increased by 11% year-over-year in January 2025. As of the second quarter of 2025, the typical home value in Georgia was approximately $339,764.

In Texas, home prices increased statewide at the end of 2024, though at a slower pace. The average home price was approximately $422,000, a 2.1% increase year-over-year. As of the second quarter of 2025, the typical home value in Texas was about $309,450. This indicates that, on average, homes in Texas were more affordable than in Georgia.

Key Factors Influencing Housing Costs

Property tax structures significantly impact the overall cost of homeownership in both states. Texas does not have a state income tax, which can lead to higher property taxes to fund local services. Property taxes in Texas are generally higher than the national average, with effective tax rates varying by county. Georgia, conversely, has a state income tax, and its property tax rates are typically lower than those in Texas.

Homeowner’s insurance premiums also contribute to housing costs. Both states are susceptible to weather-related events that influence insurance costs. Texas, with its long coastline and exposure to hurricanes and severe inland storms, often experiences higher rates. Georgia, particularly its coastal regions, is also vulnerable to hurricanes, which can elevate premiums. However, a property’s specific risk profile, including proximity to water or flood zones, heavily influences individual insurance costs.

Population growth and economic conditions play a significant role in shaping housing markets. Both Texas and Georgia have experienced population influxes, driven by job growth and a lower cost of living compared to other parts of the United States. Texas’s job market, particularly in technology and energy, attracts new residents, sustaining housing demand. Georgia has also been recognized for its business environment and growing job market. This demand, coupled with varying housing supply, influences price appreciation.

Regional Differences Within Each State

Housing costs within both Texas and Georgia are not uniform, displaying significant variations between metropolitan and rural regions. In Texas, major metropolitan areas like Austin, Dallas-Fort Worth, Houston, and San Antonio generally command higher home prices and more competitive markets. Austin, for example, has historically had some of the highest-priced homes, though prices in some major Texas cities saw slight declines or stabilization in 2024. Conversely, smaller cities and rural parts of Texas offer more affordable housing options.

Georgia’s housing market also exhibits diverse pricing across its regions. Metropolitan Atlanta, a major economic hub, has significantly higher housing costs compared to other areas. Cities like Savannah also see higher median prices due to their unique appeal. However, many suburban and smaller cities in Georgia present more moderate housing costs, offering alternatives for affordability. A state-level average may not accurately reflect the cost of housing in a specific community.