Texas Household Income Growth Slows in 2025

State residents face continued housing cost-burden as income gains fail to keep pace with national averages.

Updated on Oct. 29, 2026 in Residential

Gouache-painted editorial illustration of brass keys resting on wooden coasters, evoking the domestic financial strain of housing costs in Texas. — Texas household income growth slowed in 2025, leaving many residents struggling to manage rising housing costs relative to national income medians. AI Illustration. Upload story photo >

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Is the cost of housing in your area making it harder to maintain your standard of living?

The U.S. Census Bureau reported that Texas household income growth slowed in 2025, with a state median of $82,625 compared to the national median of $84,780. Many households continue to face housing cost burdens, with over half of the 4.3 million Texas renters spending a significant portion of their income on housing.

Why it matters

Rising housing costs relative to income growth impact the financial stability of Texas families and their ability to save for long-term homeownership or maintenance. These figures reflect the ongoing challenge of maintaining affordability in a state where housing expenses remain high for both renters and homeowners.

Approximately 32% of homeowners with a mortgage are currently cost-burdened, while the median property tax bill for mortgage-free homeowners decreased by 4.2% compared to 2024. Among demographic groups, median incomes ranged from $64,664 for Black households to $122,370 for Asian households.

The players

U.S. Census Bureau

The primary federal agency responsible for producing data about the American people and the economy.

The details

Housing cost-burden is defined as households spending $3 of every $10 of their income on housing expenses. While regional income trends varied, areas like Houston and San Antonio saw growth, whereas McAllen and Dallas-Fort Worth experienced declines. Additionally, the data highlights that Travis County residents own electric vehicles at twice the state average rate, marking a unique local consumer trend.

2021 marked the beginning of the growth period for household incomes.
2024 served as the baseline for property tax bill comparisons.
2025 is the period covered by the latest U.S. Census Bureau data.

The Home Front

These figures align with ongoing national trends where housing cost-to-income ratios remain a critical benchmark for household financial health. The data tracks closely with established Census Bureau benchmarks regarding the percentage of income allocated to essential residential expenses.

Review your household budget to determine if your housing costs exceed the 30% threshold used to measure cost-burdened status. If you are a homeowner, verify your most recent property tax statement against your 2024 records to see how your specific local tax burden aligns with state trends.

The takeaway

Understanding how your household income compares to state medians is vital for long-term planning and managing property tax liabilities. Keep a copy of your annual mortgage statements and tax assessments on file to track how your housing costs fluctuate relative to these broader economic shifts.