Although $100 might appear to have a uniform purchasing power everywhere, its true value can differ significantly depending on your location. Due to a comparatively lower cost of living and more favorable prices on daily necessities, residents in various parts of the country experience greater purchasing power than those in other states.
For instance, in Texas, that same $100 stretches further than it would in states like Massachusetts and Florida. According to Go BankingRates, the real value of $100 in Texas is $102.83, meaning your money, like most things in the state, grows larger here than in many other places. While an additional $2.83 might not seem significant, amidst ongoing inflation and rising living costs, small differences can accumulate. Even a modest increase in purchasing power can provide families with some relief as they strive to keep up in an increasingly expensive world.
Why $100 Feels Bigger in Texas
Texans enjoy more value for their money due to lower costs for housing and essential goods compared to many other states. Housing, a major expense in any budget, is considerably cheaper than the national average. According to the Federal Reserve Bank of St. Louis, the median home listing price in Texas is $375,000, in contrast to the national median of $416,900. The average rent in Texas is also notably lower at $1,460 compared to the national average.
It’s not only housing; everyday essentials such as groceries, transportation, and healthcare also tend to be more affordable in Texas. According to RentCafe, the state’s cost of living is 5% below the national average. Go BankingRates reports that Texans pay an average of $44,989 in living expenses. This might seem substantial, but in a state like California, the cost is nearly double at $86,408. When both large and small expenses sum up to less, Texans find their $100 extends further, alleviating the strain of inflation and helping families retain more money each month.
Texas’ Economy Compared to Other States
Although Texas may not boast the largest economy in the country, it consistently ranks as one of the top places to live for retirees and budget-conscious individuals. Unlike many states, Texas does not impose a state income tax, allowing residents to retain more of their earnings, which significantly impacts the cost of living. In contrast, California has a variable income tax rate ranging from 1% to 12.3%, where $100 provides only $87.42 worth of purchasing power.
Beyond tax advantages, Texas continues to invest in housing initiatives as its population expands, attracting more people to the state. Through several city-led programs, there has been an increase in affordable housing supply and other benefits like down payment assistance. These initiatives have further stabilized housing costs in Texas, making it an appealing destination for those seeking to stretch their budgets.
