This article takes a look at the 15 worst places in Texas for a couple to live on only social security. If you wish to skip our detailed analysis on retiring to Texas, you may go to 5 Worst Places in Texas for a Couple to Live on Only Social Security.
On Retiring to Texas
The verdict is out, and amidst the rankings, one Southern state has effortlessly retained its esteemed position at the summit. That’s right: U-Haul Holding Company (NYSE:UHAL) has once again crowned Texas as the top growth state for the third year in a row. Ranking behind this glorious state is the Sunshine State of Florida, followed by states such as the Carolinas and Tennessee.
This is what John “J.T.” Taylor, U-Haul Holding Company (NYSE:UHAL) International president has to say about these moves:
“While one-way transactions in 2023 remained below the record-breaking levels we witnessed immediately following the pandemic, we continued to see many of the same geographical trends from U-Haul customers moving between states… Migration to states in the Southeast and Southwest is still very pronounced. Demand for one-way equipment out of certain markets in the Northeast, Midwest, and West Coast mirrors what we have seen during recent moving cycles”.
Texas has secured its title as the top growth state for an impressive sixth time within the span of eight years, dominating the rankings from 2016 to 2018 and reclaiming its throne from 2021 to 2023. Throughout this period, it has consistently maintained a remarkable position, never falling below second place on the U-Haul Growth Index, notes U-Haul Holding Company (NYSE:UHAL).
However, this popularity of Texas as a retirement state shouldn’t come as a surprise. After all, it is one of the states that don’t tax retirement income. Not only do retirees get to enjoy their retirement income tax-free, but in case they wish to work post-retirement, they don’t need to pay any taxes on that either. This is because Texas also falls among the states that don’t have an income tax. Combine these perks with the amazing climate that the state offers, and it sure looks like a win-win for all those considering a move. To top it all, the cost of living in this state is also lower than the national average.
For those looking to move, some of the best places to live in Texas on Social Security include San Antonio, Huntsville, Victoria, and Odessa. Not only do these places offer a good mix of amenities, but are also cheap enough to live on Social Security alone. However, the entire Lone Star State isn’t as cheap as one might think it to be. There are many upscale developments, resort communities, and even posh areas where living alone on a mere Social Security check is not possible.
According to a report by Redfin Corporation (NASDAQ:RDFN), Austin has been losing out on home buyers since quite some time, with the number of Austin-based homebuyers looking to move out of the metro more than doubling since 2022. The technology-powered real estate firm Redfin Corporation (NASDAQ:RDFN) notes that home buyers are looking to relocate because of the rising prices in the Texas capital. There has also been a rise in monthly mortgage payments, making monthly housing payments even more expensive than they already were with increasing prices. As such, living in this city is becoming financially hard for many.
Similar to cities like Austin, many places are worst in Texas for a couple to live on Social Security alone. Let’s discover what these places are.
A close-up of a person’s hands counting a stack of coins, illustrating the importance of retirement solutions.
Methodology
To compile the list of worst places in Texas for a couple to live on only Social Security, we have conducted a cost of living analysis of various places within Texas to ascertain which cities or towns are expensive in terms of cost of living, rent, and housing affordability that make them unfit for retirement on merely a social security check. Scores were awarded to each factor and an Insider Monkey Score was generated. Places have been ranked based on this IM score in ascending order from the lowest to the highest scores.
By the way, Insider Monkey is an investing website that tracks the movements of corporate insiders and hedge funds. By using a similar consensus approach, we identify the best stock picks of more than 900 hedge funds investing in US stocks. The top 10 consensus stock picks of hedge funds outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here). Whether you are a beginner investor or a professional one looking for the best stocks to buy, you can benefit from the wisdom of hedge funds and corporate insiders.
Here are the worst places in Texas for a couple to live on only Social Security:
15. Fresno
Insider Monkey Score: 23
Cost of Living Index: 108.1
Average Rent (2-bedroom): $2,028
Median Home Price: $330,000
This unincorporated community and census-designated place (CDP) is situated in Fort Bend County. Houses in Fresno may look affordable, but rents won’t leave you much room to spend on groceries, utilities, and most importantly: healthcare. The average social security check is only a mere $1,909, while that for a couple would be around $3,800 considering both partners have worked and receive the average social security check. Having spent $2,028 on rent, $1,800 will be left to spare on groceries, utilities, and healthcare for two.
14. Haslet
Insider Monkey Score: 25
Cost of Living Index: 101.5
Average Rent (2-bedroom): $2,090
Median Home Price: $630,000
Next up on our list of worst places in Texas for a couple to live on only Social Security is Haslet. The median home price in Haslet is a staggering $213,000 higher than the national median, and the average retiree relying solely on social security shouldn’t consider moving here. Rents aren’t going to leave much behind either, so it’s better not to consider this Texas city when considering a retirement to this state.
13. Red Oak
Insider Monkey Score: 27
Cost of Living Index: 104.4
Average Rent (2-bedroom): $1,979
Median Home Price: $373,000
Situated in Ellis County, Red Oak is another city retirees relying on a small Social Security check must steer clear of. The average rent for a two-bedroom here is close to $2,000, and the overall cost of living is 4.4% higher than the national average. Of course, seniors can find cheaper accommodations here and there but almost always at the cost of important factors such as safety and peace.
12. Wimberley
Insider Monkey Score: 27
Cost of Living Index: 113
Average Rent (2-bedroom): $1,622
Median Home Price: $540,000
Ranking 12th on our list of worst places in Texas for a couple to live on only social security is Wimberley. A high cost of living, comparatively high average rents, and expensive home prices mean that a retired citizen cannot afford to comfortably live here. We do agree that Wimberley may have its charms, but its affordability isn’t favorable for retirees relying solely on social security benefits.
11. Cross Roads
Insider Monkey Score: 29
Cost of Living Index: 107.6
Average Rent (2-bedroom): $1,782
Median Home Price: $827,000
With a cost of living that is 7.6% higher than the national average, living in Cross Roads doesn’t quite make sense for a couple trying to survive on social security. The average rent is almost $1,800, which means a couple is left with almost $1,000 to manage utilities, groceries, and healthcare each.
10. Little Elm
Insider Monkey Score: 30
Cost of Living Index: 107.6
Average Rent (2-bedroom): $2,018
Median Home Price: $427,573
Little Elm, Texas, presents significant challenges for retirees dependent solely on social security benefits. With a Cost of Living Index of 107.6 and a median home price of $427,573, the area’s elevated living expenses pose a considerable financial burden. Even rental options, averaging $2,018 per month for a two-bedroom apartment, strain retirees’ limited incomes. This lack of affordability makes it difficult for retirees to cover necessities and maintain a comfortable standard of living.
9. Melissa
Insider Monkey Score: 31
Cost of Living Index: 111.7
Average Rent (2-bedroom): $1,936
Median Home Price: $530,000
Next up on our list of worst places in Texas for a couple to live on only Social Security is Melissa. Choosing Melissa isn’t a wise move for those on a Social Security check considering the cost of living is 11.7% higher than the national average. The high cost of living coupled with expensive housing options can create a significant disparity between retirement income and the amount needed to cover necessities. This financial strain can diminish retirees’ quality of life.
8. Colleyville
Insider Monkey Score: 31
Cost of Living Index: 101.5
Average Rent (2-bedroom): $2,235
Median Home Price: $970,000
For couples who wish to retire to Colleyville, they must have another source of income besides Social Security if they are to comfortably retire here. This is because real estate is quite expensive for the retiree surviving on a mere Social Security check, and even rents aren’t small enough to make it easier to manage other expenses such as groceries and utilities.
7. Plano
Insider Monkey Score: 32
Cost of Living Index: 111.7
Average Rent (2-bedroom): $2,099
Median Home Price: $515,000
This city in North Texas may have all the amenities for a comfortable retirement, but it isn’t affordable enough for those getting by on their Social Security checks. With a Cost of Living Index matching Melissa at 111.7, retirees may find their Social Security benefits stretched thin to cover everyday expenses like groceries, healthcare, and transportation. The average rent for a two-bedroom apartment in Plano is notably steep at $2,099, which can consume a significant portion of a retiree’s fixed income. Additionally, the median home price of $515,000 presents a barrier to home ownership for retirees with limited resources.
6. Horseshoe Bay
Insider Monkey Score: 33
Cost of Living Index: 117
Average Rent (2-bedroom): $1,624
Median Home Price: $795,000
Horseshoe Bay, Texas, is not only known for its high cost of living but also for being a resort area. With its picturesque scenery, access to Lake LBJ, and numerous recreational activities, Horseshoe Bay attracts tourists and vacationers seeking a luxurious getaway. However, this designation as a resort area often translates into higher living expenses for residents, including retirees. Consequently, what is known as a luxurious resort also translates into one of the worst places in Texas for a couple to live on Social Security alone.
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Disclosure: none. 15 Worst Places in Texas for a Couple to Live on Only a Social Security is originally published on Insider Monkey.