What Is the Cost of Living in Lubbock, Texas?

The cost of living refers to the money required to sustain a certain standard of living in a given location. This encompasses essential expenses such as housing, food, transportation, taxes, and healthcare. Understanding these financial outlays is important for individuals and families considering a move or managing their budgets. This article provides a detailed overview of the cost of living in Lubbock, Texas, examining the expenditure categories that impact affordability. It also explores local economic factors and positions Lubbock’s affordability within broader state and national contexts.

Key Expenditure Categories

Housing typically represents the most significant portion of an individual’s budget. In Lubbock, both rental and homeownership costs contribute to overall affordability. The median rent for all property types was approximately $1,300 per month as of August 2025, with average rents ranging from $858 to $1,395 depending on property type. A one-bedroom apartment typically costs around $745 per month, while a two-bedroom averages $899 to $1,113. For homeownership, the median home price was about $249,000 in July 2025.

Property taxes significantly affect homeownership costs in Texas. Lubbock County has a median effective property tax rate of 1.86%, higher than the national median of 1.02%. For a home valued at the median of $190,386 in Lubbock County, the annual property tax bill is approximately $3,513. These taxes are collected by local taxing units, including the county, city, and school districts, based on the assessed value.

Utility expenses are another important component of the cost of living. Residents in Lubbock generally experience utility bills about 9-12% lower than the national average. Average total monthly utility costs, encompassing electricity, water, gas, internet, and trash services, typically range from $300 to $350.

Average electricity bills can range from $117 to $233 per month, with an average rate of 16 cents per kilowatt-hour. Internet and cable services average around $75 per month, and water bills are approximately $40 per month.

Food costs in Lubbock are also generally favorable, with grocery prices estimated to be about 4% lower than the national average. Specific average prices for common items include a loaf of bread at $3.81, a gallon of milk at $4.53, and a carton of eggs at $3.43. These lower grocery costs contribute to overall savings.

Transportation costs are a factor for most residents, as personal vehicles are the primary mode of travel in Lubbock. The average car insurance rate in Lubbock is approximately $1,787 per year, or about $149 per month, which is slightly less than the Texas statewide average. Gas prices in the area average around $2.84 per gallon. Public transportation options exist, but are not as commonly used as personal vehicles for daily commuting.

Healthcare expenses in Lubbock are generally more affordable than the national average, falling between 7% and 11% lower. A doctor’s visit averages around $134.96, a dentist visit is about $110.16, and an optometrist visit costs approximately $122.33. Average health insurance premiums for a 40-year-old might be around $509 per month. Prescription drugs also tend to be less expensive, averaging about $19.28.

Beyond the major categories, miscellaneous expenses cover a range of daily out-of-pocket costs such as personal care, entertainment, and clothing. These non-essential expenses are estimated to be about 6% cheaper in Lubbock compared to the national average. This general affordability contributes to a more manageable cost of living for residents.

Local Economic Influences on Costs

The local economy and job market in Lubbock play a considerable role in shaping the cost of living. Dominant industries include healthcare, education, and agriculture, with significant contributions from manufacturing, retail trade, and food processing. Major employers like Texas Tech University and Covenant Health System provide a substantial number of jobs, influencing wage levels and the overall economic landscape. A large student population also impacts the local economy and demographics.

Population growth in Lubbock contributes to demand for housing and services. The city’s population has increased by 5.73% since the 2020 census, with an annual growth rate of 1.1%. This steady growth can influence housing availability and prices, although Lubbock remains an affordable market compared to many other Texas cities.

Local taxation and regulations also have a direct impact on living costs. Texas does not impose a state income tax, which can result in significant savings for residents compared to states with income taxes. This is often balanced by higher property and sales taxes. Lubbock County has a general sales and use tax of 0.5% for county operations, in addition to the state sales tax. Property tax rates, while higher than the national average, fund local services and contribute to the overall tax burden on homeowners.

Geographic factors also influence specific cost categories. Lubbock’s location in the high plains region of West Texas means it experiences extreme temperatures, with hot summers and cold winters. This climate can lead to higher electricity consumption for air conditioning and heating, impacting utility bills. Despite this, the residential kilowatt rate for electricity in Lubbock is about half the national average, helping to mitigate these seasonal increases.

Lubbock’s Cost of Living in Context

Lubbock consistently ranks as a city with a lower cost of living compared to both state and national averages. Lubbock’s overall cost of living is approximately 8% to 20% lower than the national average. This affordability is often measured using a cost of living index, where 100 represents the national average. Lubbock’s index scores typically range from 79.9 to 92, signifying that expenses in the city are notably below the national benchmark.

When compared to the broader state of Texas, Lubbock’s cost of living is also generally lower, being about 5% to 12% less expensive than the Texas average. This makes Lubbock one of the more affordable cities within the state, particularly when considering housing costs. Housing expenses in Lubbock are often cited as significantly more affordable than in major Texas metropolitan areas like Austin, Dallas, and Houston.

Housing offers the most substantial savings compared to other, more expensive cities across the country, being approximately 15-16% cheaper than the U.S. average. Transportation expenses further contribute to the lower overall cost, typically being 11-12% less than the national average. These comparisons suggest that individuals and families can achieve a higher standard of living in Lubbock with a more modest budget than in many other parts of the United States.