Both Texas and California can be a great place to live. They are both the largest states in the U.S. However, the cost of living can vary significantly in Texas and California. The cost of living mainly measures the amount of money that a regular resident would spend in order to meet the standard lifestyle. The spending may include food, housing, transportation, health, etc.
According to a study by the Massachusetts Institute of Technology, the average cost of living is higher in California comparing to the average amount in Texas. The research also indicated that people who live in California need to make an extra 27.2% income in order to reach the same living standard in Texas.
-Cost of living comparison
There are five criteria we could look at when comparing the living cost in the two states: food, housing, transportation, health, and childcare. According to the report, the spending on major criteria is higher in California.
The average annual cost of food for an individual is $2,994 in Texas and $3,573 in California.
Housing is considered the largest portion of spending in both states. People who live in Texas would have much less spending on housing compared to that in California.
The annual cost for raising one child in Texas is around $25,000, while raising one child in California would cost more than $32,000 annually.
It is worth noting that the transportation costs are relatively lower in California since individuals in Texas need to spend about 10% more on transportation compared to individuals who live in California.