In North Texas, the cost of living is rising so fast that even Dallas, one of the region’s major economic centers, demands an income well above what most households earn to live comfortably.
According to a recent study by financial firm SmartAsset, it now takes over $200,000 a year for a family of four to cover necessities, enjoy life and save for the future in Dallas. Meanwhile, the city’s median household income remains far lower, making affordable comfort a distant goal for many.
What Is Living Comfortably?
The definition of “comfortable living” varies widely depending on individual preferences and family situations. The study used the 50/30/20 budgeting rule to create rankings of affordability across cities. This rule divides income by 50% toward necessities such as housing, food, transportation and medical expenses; 30% toward discretionary spending like travel and hobbies; and 20% toward savings or debt repayment.
How Much You Must Make In Dallas
The study found that a single person in Dallas needs nearly $96,000 a year to live comfortably, while a family of four requires more than $213,000. This starkly contrasts with the city’s median household income of $70,121, less than half what a family would need.
High housing costs, childcare and other essentials push those comfortable living numbers even higher, making Dallas one of the most expensive cities in the region.
The financial strain in Dallas is prompting residents to seek alternatives farther from the city center. Yet, longer commutes can add stress and cost, leaving people searching for communities that balance affordability, quality of life and reasonable access to jobs.
Opportunity Just North of Dallas
Located about 30 miles north of Dallas, McKinney is attracting attention for offering a more affordable lifestyle without sacrificing quality. As Local Profile previously reported, McKinney was recently named the most affordable city in the United States, with its cost of living slightly below the national average.
The city’s median household income is $116,654, which, combined with a median home value of around $440,000, creates a more manageable economic environment. Although homes are priced modestly above the national median, residents benefit from lower everyday expenses and a broad employment base.
“This ranking reflects what we already know,” a city spokesperson said in a social media post. “McKinney is a place where opportunity, community and value come together.”
McKinney’s largest industries include professional services, retail and healthcare, sectors that provide stable jobs and economic growth. This diversity helps the city maintain affordability while supporting the region’s growing population.
A Balancing Act for North Texas Residents
As Dallas raises the bar on living costs, many North Texas residents are forced to make difficult decisions about where to live, how much to spend and what kind of lifestyle they can maintain, often choosing the suburbs over the city.
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