What is the cost of living in Waco, Texas?

The cost of living in Waco, Texas is meaningfully lower than both the Texas and U.S. averages, with an overall index of 77 compared to 93.9 for Texas and 100 for the nation, according to data compiled by the Heart of Texas Economic Development Corporation. Housing is the biggest driver of that gap, while groceries, healthcare, and utilities land much closer to state and national norms.

For buyers and renters relocating from Austin, Dallas, or out of state, the difference is real and measurable. If you're considering a move to the area, our Waco hometown guide gives you a broader look at what everyday life here is actually like.

How does Waco's cost of living break down by category?

When people ask us about the cost of living in Waco, the headline number only tells part of the story. A 23-point gap below the U.S. average becomes more meaningful when you look at where those savings actually occur.

Here is how the major categories stack up, using index values where 100 equals the U.S. average. The figures are sourced from the Heart of Texas EDC's cost-of-living data.

Housing: the biggest cost advantage in Waco

A housing index of 50.3 is the most striking number in Waco's cost-of-living data. For someone relocating from a higher-cost metropolitan area, housing is often where the difference becomes most noticeable.

The most recent available data, from August 2026, shows a $285,000 median sale price for Waco, with 851 active listings and homes averaging 67 days on market.

For longer-term context, the Federal Reserve Bank of St. Louis FRED data shows the Waco metro house-price index at 396.30 in Q2 2026. That index measures appreciation over time rather than the current price of an individual home.

We work with buyers across Waco, Woodway, China Spring, Lorena, Hewitt, Robinson, and surrounding Central Texas communities. A citywide median is useful, but what you actually pay can change considerably based on ZIP code, school district, lot size, home age, condition, and amenities.

For a closer look at current inventory and market time, compare our Waco 76710 housing market update with our 76705 housing market update.

If buying your first home is part of the equation, our First-Time Home Buyer in Waco, TX: 2026 Guide covers local and statewide resources that may affect your initial cost of becoming a homeowner.

Utilities and electricity in Waco

Utilities in Waco index at 97.9, nearly identical to the national average, so this is not where most of Waco's cost advantage comes from.

Actual electric bills depend on the size and efficiency of the home, thermostat settings, weather, provider, and current utility rates. Verify current rates directly with your provider when creating a household budget.

Property taxes: what you need to know in McLennan County

Texas does not impose a state individual income tax, so property taxes are an important part of calculating the total cost of homeownership.

McLennan County's public hearing notice lists a proposed 2026 county property-tax rate of $0.394805 per $100 of assessed value, compared with $0.334805 in 2025.

The total varies according to exactly where a property is located. When our clients are seriously considering a home, we look at the tax information for that specific property rather than relying on a citywide estimate.

How does Waco compare to Austin, Round Rock, and other Central Texas cities?

This is one of the questions we hear most from relocating buyers. The largest difference generally shows up in housing costs.

Austin-area housing costs have historically been substantially higher than Waco's. Round Rock, as part of the greater Austin metro, is influenced by many of the same housing pressures.

For property taxes, the City of Round Rock adopted a municipal tax rate of 37.2 cents per $100 of valuation for fiscal year 2026. As in Waco, that municipal rate represents only one part of a homeowner's total tax bill.

Temple and Killeen, like Waco, fall into a more affordable portion of the Central Texas housing landscape. The differences between those communities are often less dramatic than a Waco-to-Austin comparison.

If you are weighing a move based on more than finances, our Things to Do in Waco: Your New Hometown Guide covers parks, museums, outdoor recreation, dining, Baylor University, downtown, and other parts of everyday life in the area.

The Texas Real Estate Research Center also tracks Waco housing activity. For the most current property-level and neighborhood-level information, however, we use local MLS data when helping our clients compare options.

What should you compare before deciding where to live?

A cost-of-living index is useful, but it should not be the only number you consider. Two households in the same city can have very different monthly costs.

When comparing Waco with another Central Texas community, look at:

• Home purchase price or monthly rent
• Property taxes for the specific property
• Homeowners insurance
• Mortgage rate and financing terms
• Utility costs
• Commute distance and transportation expenses
• Home maintenance and age of the property
• HOA dues, if applicable
• How long you expect to live in the home

Your specific cost picture depends on your home, neighborhood, commute, financing, taxes, insurance, and lifestyle. That is where a property-specific comparison becomes much more useful than a national index alone.

About Cristi McGowan

Cristi McGowan is a Waco real estate broker and owner of NextHome Our Town, serving Waco, Woodway, China Spring, Lorena, Hewitt, Robinson, McGregor, Crawford, and surrounding Central Texas communities.

With more than 20 years of experience, she specializes in listing homes and advising buyers who want a strategic, well-informed approach to real estate, with an emphasis on clear communication, creative negotiation, and data-driven guidance without pressure or hype.

NextHome Our Town
Cristi McGowan, Broker/Owner
254.214.8900