Planting roots

Houston hailed as the No. 1 Texas city for the middle class

Houston stands out for its affordable homes and strong job market.

Sky Noir Photography by Bill Dickinson/Getty Images

Middle-class families looking for the perfect place to call home may find just what they're looking for in Houston, according to a new study.

Personal finance website Simple Thrifty Living ranked the best cities for middle-class families in every state, declaring Houston No. 1 out of 100 Texas cities. The study analyzed each city based on socioeconomic factors that are important to families, such as local median income and home value (compared to the state as a whole), real estate taxes, unemployment rate, college educated residents, schools, and job availability.

Houston, with a median household income of $49,399 (compared to the statewide median of $57,051) stands out with its affordable homes (the local median of $169,600 is right in line with state's median of $169,500) and perfect job score, with 19,981 openings within a 10-mile radius. The strong employment market shouldn't come as a surprise for Houston, as the metro area was recently recognized for record job growth over the last decade.

Outside H-Town proper, two other Houston-area spots land in the top 10, including the somewhat curious entry of affluent West University Place, No. 7, and the more affordable outpost of Richmond, No. 9.

Despite a median household income ($243,226) and home value ($1,041,600) well outside the Texas norm, aspirational West U receives exceptional scores for its highly educated residents and real estate tax rate. The story is different in Richmond, where residents earn less than the state median, $51,345, but home values are an affordable $174,300. Richmond also boasts a low unemployment rate and higher performing students than most of the top 10.

No. 2 on the list is Dallas, with a median income of $47,285, median home value of $183,000, and impressive 18,377 job openings. Four other Dallas-area spots land in the top 10: University Park, No. 3; Highland Park, No. 4: Irving, No. 5; and Fort Worth, No. 10.

Austin, No. 6, with a median income of $63,717, and the West Texas enclave of Canyon, No. 8, round out the top Texas cities for middle-class families.

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Make that paper

A $100k salary goes farther in Houston than other top Texas cities, a study finds

FPhoto by Alexander Mils on Unsplash

Seven Texan cities appear in the study’s top 10 where a six-figure salary goes the furthest.

Many people daydream about making six figures in their career before they enter the workforce. But the rising cost of living certainly throws a wrench in the works. Luckily for Texans, a six-figure salary still goes pretty far in the state.

In a new report from SmartAsset, a $100,000 salary in Texas is worth an average of $77,885 after taxes and adjusted for the cost of living. The financial technology company analyzed income in 76 United States cities, and adjusted them for the cost of living in each location.

Seven Texan cities appear in the study’s top 10 where a six-figure salary goes the furthest. Houston ranked No. 6 as the fourth Texas city on the list, after El Paso (No. 2), Corpus Christi (No. 4), and Lubbock (No. 5). A Houstonian's six-figure salary is reduced to $74,515 after taxes, but is technically worth $81,350 when adjusted for the cost of living.

In a three-way tie with San Antonio for No. 7, a person who makes $100,000 a year in Fort Worth and Arlington takes home about $74,515 after taxes. When adjusted for the cost of living, which is seven percent lower than the national average, that money is worth $80,124.

Dallas appears at No. 34 on the list, with the average six-figure earner bringing home $72,345 after taxes. That salary shrinks in the northern Dallas suburb of Plano (No. 59), where the worker brings home $59,422.

The place where $100,000 goes the furthest is Memphis, Tennessee. Much like Texas, Tennessee doesn’t have a state income tax and has a lower cost of living in comparison to the national average.

After Memphis is El Paso, followed by Oklahoma City (No. 3), then Corpus Christi, Lubbock, and Houston. After the Texan three-way tie for No. 7, St. Louis, Missouri rounds out the top 10.

The 10 total Texas cities that appear in SmartAsset’s study include:

No. 2 – El Paso
No. 4 – Corpus Christi
No. 5 – Lubbock
No. 6 – Houston
No. 7 – Fort Worth, Arlington, San Antonio (tied)
No. 24 – Austin
No. 34 – Dallas
No. 59 – Plano

The report and its methodology can be found on SmartAsset’s website.

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