Cost of Living Spring Texas: housing, property taxes, gas, utilities

How does the cost of living in Spring Texas compare to the national average?  Can you afford to live in Spring Texas?

The pandemic has changed a lot of things including the number of jobs that can be successfully performed remotely. Remote work has provided people with more flexibility has to where they can live. People are moving out of high cost states including California, Washington, Utah, and New York and heading to Texas.  We have seen an influx in people moving to Spring Texas within the last couple of years. Has the migration influx of people into Spring Texas ruined its affordability? I’m happy to say “No”. Spring Texas is still an affordable place to live. Spring Texas’s housing costs are 20% below the national average. The national average list price in December 2021 was $375,000. The average list price for a Spring Texas home in December 2021 was $300,000.

The bad news about the low housing cost is its partially offset by the high Spring Texas property taxes. Texas is one of nine states that do not have a state income tax. Since we do not have a state income tax, we have to pay for our public services and schools through real estate taxes.  The property tax rate for Spring Texas runs between 1.6% to 3.8%. Our property taxes have three cost components: county, school, and mud. There’s not a significant difference between the Harris and Montgomery county tax rates. The tax rates between the three school districts of Klein, Conroe, and Spring are not significant. The difference in the tax rates in Spring Texas is due to the difference in the MUD (Municipal Utility District) tax rates.  The MUD tax rates vary from subdivision to subdivision. The newer the subdivision the higher the tax rate. The sewer and septic is installed by the MUDs. The MUDs issue bonds to pay for the infrastructure which are paid down over years by the homeowners.

Money saving tip 1: purchase a home in an older subdivision that has a lower property tax rate.

Money saving tip 2: apply for exemptions to reduce your property taxes. If the property is your primary residence, you should be able to easily qualify for the homestead exemption. The homestead exemption reduces the tax assessed value of the property. The exemptions vary based upon school district, county, and MUD.

Gas prices in Spring Texas are 20% below the national average. In January 2022, the price for a gallon of regular unleaded gas nationally was $3.30 in Spring Texas the price was $2.65.

Healthcare costs in Spring Texas are 8% below the national average.

Food and Grocery Costs are 4% below the national average. Spring residents also have easy access to Texas based HEB grocer.  HEB was named the 2nd best grocer in the US for 2022 based upon its strong balance of great price and great quality.

Utility costs in Spring Texas are 3% below the national average. Part of the reason behind our lower utility costs is electricity is deregulated in Spring Texas. Texas has the largest deregulated electric sector in the US. Powertochoose.org has a list of electricity providers and their plans for you to choose from.

Money saving tip 3:  Sign up for a term plan for your electricity.  A term plan locks in your electricity rate for a defined time period. Without a term plan your electricity rate will increase during the months of greater demand on the electrical grid.  To avoid a summer electricity bill that gives you sticker shock, sign up for a term plan.

The low cost of living is at the top of my list of things I love about living in Spring Texas.