Cost Of Living In Lubbock, Texas (Taxes, Housing & More)

Lubbock, Texas frequently finds itself on the top 10 lists for the best places to live in the country. For those who have not had the pleasure of visiting, the high rankings may seem a bit bizarre, but they are actually well-deserved. A young population, low cost of living, and short commutes make this town tops.

Lubbock comes in well below the national average for the cost of living. On an index using 100 as the national average, Lubbock is at only 79.9, making it 20 percent less expensive to live there than the nationwide average!

Thanks to these low cost of living figures, the dollar will stretch further in Lubbock than in other locations across the country. Read on to learn more about what you can look forward to when leaving on the cheap in the Hub City.

Homeownership is much more attainable in Lubbock than in other cities in the United States, even taking into account the rising median home cost. The median list price for single-family homes in Lubbock is just $222,000. That is a significant increase, even from last year, but housing is still at a 57.6 on the cost of living index. Given how rapidly home prices are rising in some metro areas, Lubbock can really give your wallet some breathing room.

According to the United States Census Bureau, the average monthly mortgage payment in 2018 was $1424 per month. Given that interest rates have plummeted since 2018, the average monthly mortgage payment data may well reflect a decrease in cost when the 2020 results are in.

The median rent is only $940 per month, but you will find that larger homes really drive that figure upwards.

The Lubbock rental market is a bit unique due to it being a college town. In many metro areas without a big residential student presence, the greatest demand for smaller apartments for smaller families and young people. In Lubbock, 3+ bedroom units command a premium price as they are desirable to college students rooming together.

The median rent figure is driven up by this situation, and people looking for smaller set-ups should be able to find a rental below the median rate.

Here is the average price for several common sizes:

Prospective home buyers should remember that the cost of property taxes is tacked onto your monthly mortgage payments by the lender, and Lubbock’s property taxes are more expensive than the national average. Real estate property taxes are calculated on the assessed value of the home, which is usually not the list or sell price and is actually a percentage of the home’s value. Regardless, the more expensive the home, the higher the property taxes.

The national average effective property tax rate is 1.07 percent. In Lubbock, however, the average effective rate is 1.78 percent. So, for a home that’s assessed at just $130,800, you’re looking at spending around $2,323 in annual property tax payments.

No article about Lubbock is complete without bringing up Texas Tech. For many people, when they think of Lubbock, Texas Tech and their sports teams immediately come to mind. Annual in-state tuition costs $9,300, and out-of-state tuition is $19,260.

Texas Tech offers 150 undergraduate degree programs and several post-secondary educational options, including a law school and graduate school.

For students more interested in a smaller, private school experience, there is Lubbock Christian University. Annual tuition there is $23,330, and students can choose from 63 undergraduate degrees and 11 graduate degree options.

Another religious school option is Wayland Baptist University, which has a Lubbock campus. The tuition there is $7,584 per year, and they also offer an entirely online option as well as in-person classes. WBU offers both graduate and undergraduate degrees in several fields.

Finally, students can pursue technical degrees in healthcare, construction, and much more at South Plains College Lubbock Center. The annual tuition there can be as low as $2,654 for in-district students.

The per-person income for people living in Lubbock is $27,922. The household median income is $52,429. About 17.9 percent of Lubbock residents live at or below federal poverty guidelines. Only 30.1 percent of the workforce has a bachelor’s degree or higher.

The education industry is a big employer in Lubbock. In addition to the public and private schools for elementary and high school children, the city has two 4-year colleges and one community college. Between professors, support staff, and administration, all of these institutions contribute many jobs to Lubbock.

The medical field also employs many people in Texas. Texas Tech Health Sciences Center and the UMC Health System both provide patient care in the city and are considered two of the biggest employers.

The low cost of living in Lubbock can be appealing, but it can also be deceptive. The city falls below the national average for necessities like housing, utilities, and groceries, meaning your dollar will stretch further here. However, many people in Lubbock have fewer dollars to stretch because the poverty rate is high and the median income is low. The low median income in the city should give potential residents pause before committing to the area.

If you are confident in your job prospects, Lubbock can be a great city to move to, especially for those from the surrounding small towns who want to move somewhere nearby with more dining, shopping, and entertainment options. Being a college town, Lubbock offers arts entertainment through the universities, and the students have created a demand for dining and nightlife.