McAllen is lately gaining popularity as a city to settle, raise a family, and retire. That’s because of the low cost of living and the cheaper real estate market. But how cheaper is McAllen exactly compared to other Texas cities? And is it wise to pour your life savings into constructing a home in McAllen?
In this article, we will compare the housing prices in McAllen with other Texas cities to help you make that decision.
Is McAllen, Texas Expensive Than Other Texas Cities?
Texas is the second-biggest state in the US in terms of size and population. There are over 1,200 cities that are incorporated in the Lone Star State, McAllen being one of them.
McAllen is the 23rd biggest city by population. And since it’s not that big as compared to cities like Houston or Dallas, the southernmost Texas city is not overly expensive. The real estate market is far cheaper than other locations, and so is the cost of living.
But this isn’t to say McAllen is the cheapest. The city is growing both in terms of population and economy. This is increasing the price. As per reports, McAllen home prices were up by 14.3% in August of 2023 compared to a year ago. And this trend is set to continue in the future.
But housing is just one of the expense components. The other one is the cost of living. The cost of living is among the cheapest in the country. It is 13% lower than the state average and 20% lower than the US average. So, while housing is a one-time cost, you will benefit from the lower cost of living, which is concurring month after month.
McAllen Housing Prices vs. Texas State Average
Let’s first compare McAllen’s housing prices against the state average.
In general, Texas is considered a cheap state in terms of housing. In 2022, it was the fifth cheapest state to buy or construct a home. So, it’s worth asking, “why Texas houses are so cheap?” Well, large size does play a role. It is the second-largest state with a total area of 268,596 sq. miles. The second reason is housing supply and demand. There are certain cities where there’s a mismatch between the two. But overall, the supply is either on par or more than the demand in Texas, which helps keep prices in check.
Lower property taxes are also why property is cheaper in The Lone Star state. Because such taxes are lower, homeowners have to pay less to the government each year.
The median sale price of a home in Texas is $354,200. Compare this with the national average of around $416,000, and you’ll realize the significant difference.
Despite being one of the prominent and growing cities in Texas, McAllen has a lower-than-state-average housing price. In August 2023, the figure was $280,000, around $70,000 less than the state average. Also, the housing prices in the area were up 14.3% more compared to last year. So, the prices were even lower just a year ago.
The housing prices being lower than the state average is a sign that it’s a cheaper location to construct your dream home.
McAllen Housing Prices vs. Top Texas Cities
Texas is a big state with many cities to choose from. So, how does McAllen stack up against the prominent cities of Texas? Let’s look at the top 9 cities.
1. McAllen vs. Houston
Houston is the most populous city in Texas and the fourth-most populous in the country. Thus, the housing market is likely going to be expensive. And it is. The median sale price of a home in Houston is around $335,000. This makes Houston slightly cheaper than McAllen’s housing prices of $354,200.
2. McAllen vs. San Antonio
Like Houston, the housing prices in the second-most populous Texan city are somewhat competitive. The median sale price of homes in the city was $280,000, far cheaper than that of McAllen.
3. McAllen vs. Dallas
Dallas is another prominent Texan city and the third-most populous. The median home price in 2023 in Dallas was $400,000. Thus, Dallas is more expensive than McAllen in housing prices.
4. McAllen vs. Austin
Austin is the fourth-largest city in Texas and has been in the news lately because of the infamous housing crisis. There’s way too much demand for housing, but the supply is cut short. This reached a new height during the pandemic.
Expectedly, the median home sale price in Austin in 2023 is $559,000. The prices constantly hover in the $500,000 region.
Thus, Austin is overly expensive than McAllen, TX.
5. McAllen vs. Fort Worth
Fort Worth’s housing market is also somewhat competitive. The median house price in the city in August 2023 was $340,000. Like Austin, Fort Worth also deals with housing crises, although to a lesser degree.
Thus, Forth Worth has more or less similar housing prices than McAllen.
6. McAllen vs. El Paso
El Paso has one of the highest property tax rates in America. And the rate was increased for a second straight year in 2022. This has pushed the median home price to $340,000 as of August 2023. It’s worth noting that the price has declined around 4.1% year-over-year.
So, you can conclude El Paso’s housing price is similar to McAllen’s.
7. McAllen vs Arlington
Arlington is the seventh most populous city in Texas, most notably known for being the home of the Dallas Cowboys and AT&T Stadium. The housing prices in the city have remained stable. In August 2023, the median home price in Arlington, Texas, was $330,000.
This makes Arlington cheaper than McAllen when it comes to buying a home.
8. McAllen vs. Corpus Christi
Corpus Christi is another city in Texas that has a tight housing market. There is limited home construction in the city, and the demand exceeds supply. Despite this, the median housing prices are far lower than McAllen’s. As of August 2023, the figure was $284,000.
So Corpus Christi’s housing is cheaper than that of McAllen.
9. McAllen vs Plano
Plano is the 10th most populous city in Texas, known for being a commercial hub. Because it is commercial, the housing market is competitive. The median home price value in Plano in August 2023 stands at $500,000, far more than that of McAllen.
Thus, Plano, TX, is more expensive than McAllen, TX.
Build Your Dream Home in McAllen, TX
Before deciding on the location and price, you should know that the above figures are median. This means you can purchase a house lower than $335,000 in McAllen. Certain neighborhoods are far cheaper to buy a home. You might also like to explore Shary Estates and Nemont Estates, which are exemplary examples of affordability and luxury.
That being said, McAllen can be more expensive than certain Texan cities while being cheaper than others. But, with careful planning and timing, you should get the home of your dreams within your price range. Contact us today to learn more.