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Texas consistently ranks as one of the nation’s most favorable business climates based on its low tax burden and competitive regulatory environment. In Texas, aggregate costs for real estate, energy, wages and taxes are below most states in the country.

Compared to other major business centers, Austin is well known for offering affordable living. The National Association of Realtors reports that the median home price in Austin was $163,800 in 2005 while the national median was $219,000.

Texas features no personal or corporate income tax, and overall the state has one of the lowest state and local tax burdens in the nation, ranking 45th among the 50 states in taxes paid per $1000 of personal income.

Cost of Living Index
Cost of Living Index, 2nd Quarter 2006 (U.S.=100)
  Composite Grocery (13%) Housing (28%) Utilties (10%) Trans-
portation (10%)		 Health care (4%) Misc. (35%)
Atlanta 97.7 98.6 93.2 85.8 111.2 107.9 99.3
Austin 95.3 90.5 87.3 87.5 100.7 99.1 103.7
Boston 136.4 119.2 161.8 131.5 108.6 125.5 133.0
Chicago 114.2 109.2 131.1 109.1 107.7 111.4 106.2
Dallas 94.4 101.9 76.2 111.9 108.6 102.1 96.2
Denver 104.7 105.6 110.4 111.8 96.6 102.8 100.3
NY (Manhattan) 204.7 146.8 372.0 150.2 116.3 130.9 141.7
Phoenix 100.4 98.8 101.2 92.1 103.1 100.8 102.0
Raleigh 96.1 98.6 87.6 97.2 101.1 103.7 99.4
San Francisco 169.4 140.3 275.2 88.2 116.3 124.5 139.0
Seattle 115.3 111.9 133.7 95.3 109.6 122.7 108.4
Cost of Living Index, 2nd Quarter 2006
Source: ACCRA.
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Median Sales Price, Existing Single-Family Homes
  2003 2004 2005 Annual percent change
2003-2004 2004-2005
Austin MSA $156,700 $154,700 $163,800 -1.3% 5.9%
United States 180,200 195,200 219,000 8.3% 12.2%
Source: National Association of Realtors.
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Average Home Price, Middle Management Housing, 2006
Note: The subject home type is a single-family dwelling model with approximately 2,200 sq.ft., 4 bedrooms, 2 1/2 baths, family room (or equivalent) and 2-car garage. Surveyed homes and neighborhoods are typical for corporate middle-management transferees. Where Coldwell Banker reports multiple submarkets for a metro, the price indicated is an unweighted average of the reported submarkets.

Source: Coldwell Banker.
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Tax Burden
Tax Burden, 2004
  Texas United States
State and local taxes per capita, total $2,881 $3,447
   Property 1,254 1,086
   Sales 1,320 1,230
   Individual income 0 734
   Corporate income 0 115
   Other taxes 307 281
State and local taxes per $1000 of personal income 99 110
State & Local Taxes Percapita, 2004
Source: U.S. Bureau of the Census, Census of Governments.
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