What Is the Cost of Living in El Paso, Texas?

The cost of living includes expenses like housing, food, transportation, and healthcare within a specific geographic area. Understanding these expenditures is important for individuals considering relocation or evaluating their current financial situation. This article details the cost of living in El Paso, Texas.

Key Expense Categories

Housing is a primary expense, and El Paso offers relatively affordable options. As of August 2025, the average rent for a one-bedroom apartment is around $850 to $956 per month, while a two-bedroom apartment typically ranges from $1,120 to $1,458 monthly. For those looking to purchase a home, the median listing price in July 2025 was approximately $291,000, with a median sold price of $264,400. The average home value in El Paso was around $230,694 as of July 2025.

Utility costs contribute significantly to monthly budgets, though El Paso generally sees lower rates than the national average. The average monthly electricity bill for residential customers is approximately $198. Water, sewer, and flood control bills average around $82 per month, with recent increases applied. Additional charges on water bills can include environmental fees of $5, franchise fees of $6, and a $21 charge for trash service. Natural gas expenses typically range from $20 to $30 monthly, and internet services might cost around $55 to $70 per month.

Food expenses in El Paso are generally lower than national averages. Groceries are approximately 2.8% to 3% cheaper than the U.S. average. A single adult might budget around $672 per month for groceries. Dining out can also be relatively affordable, with a meal at an inexpensive restaurant costing about $25.10 and a mid-range, three-course meal for two around $70.

Transportation costs in El Paso are slightly higher than the national average, specifically about 1.2% higher. The average annual car insurance premium for full coverage ranges from about $1,442 to $2,480. Public transportation options are available, with a one-way local transport ticket costing around $1.50 and a monthly pass priced at approximately $48.

Healthcare expenses in El Paso are 8% to 11% less expensive than the national average. This includes costs for doctor visits, dental care, and prescription medications. Miscellaneous expenses, such as goods and services, are also typically lower, around 5.4% to 6% less than the national average. For example, a movie ticket might cost around $11.81, a haircut $28.78, and dry cleaning about $17.02.

Factors Affecting Costs

Costs within El Paso vary based on several factors. Neighborhood differences play a significant role, where housing prices and associated expenses can fluctuate considerably between different districts or areas. More affluent or desirable neighborhoods will generally have higher housing costs, which can impact overall living expenses.

Individual lifestyle choices affect cost of living. Frequent dining out, entertainment preferences, and shopping habits contribute to personal spending. A frugal lifestyle focused on home-cooked meals and free or low-cost activities will result in lower monthly expenses compared to a lifestyle that includes regular restaurant visits and paid entertainment.

Income levels and the local economy influence affordability for residents. The average annual household income in El Paso is approximately $78,842, with a median household income of $58,734 per year. This economic landscape impacts what residents can comfortably afford.

Texas does not impose a state income tax. However, state and local sales taxes apply to most goods and services, with the combined sales tax rate in El Paso being 8.25%, comprising state, county, city, and special district rates. Property taxes are also a significant consideration for homeowners, and while specific rates vary by jurisdiction, they form a substantial portion of housing costs in Texas.

Comparison to Other Areas

El Paso’s cost of living is approximately 11% to 12% lower than the national average. This makes it one of the more affordable cities in Texas. Housing expenses, in particular, are significantly lower, estimated to be 29% to 30.4% cheaper than the U.S. average.

When compared to the rest of Texas, El Paso’s cost of living is about 2% to 7% lower than the state average. While housing is substantially more affordable in El Paso than the state average, transportation costs are slightly higher. This affordability contributes to its appeal.

Comparisons with other major cities in the region. For instance, the overall cost of living in Phoenix, Arizona, is 20.9% to 38% higher than in El Paso, with housing costs in Phoenix being 76.8% to 113.3% more expensive. Similarly, Albuquerque, New Mexico, is generally 11% to 13.4% more expensive than El Paso, particularly concerning housing, which can be 58.6% higher. El Paso also proves more affordable than larger Texas cities like Dallas, where the cost of living is 14.6% to 27.1% higher, and Fort Worth, which is 18.2% more expensive. While these comparisons highlight El Paso’s general affordability, individual financial experiences will ultimately depend on personal spending habits and specific circumstances.