2026 guide
Top 10 Most Affordable Central Texas Cities For Adults Over 55
Not just the cheapest home prices — the cities that balance affordability, healthcare, low-maintenance living, safety, and access to amenities.
The ranking
Ten Cities, Ranked By Real Value
Median home price, cost of living, and property tax rate together decide how far your equity actually stretches. Two towns at the same list price can differ by hundreds of dollars a month in carrying cost.
| Rank | City | Median home price* | Cost of living | Property tax rate** | Why it's great |
|---|---|---|---|---|---|
| 01 | Belton | ~$300K | 8% below U.S. avg | ~1.8–2.1% | Charming downtown, lakes, excellent healthcare |
| 02 | Temple | ~$270K | 10% below avg | ~2.0% | Baylor Scott & White Medical Center, affordable housing |
| 03 | Killeen | ~$245K | 12% below avg | ~2.0% | Lowest home prices in the region, growing amenities |
| 04 | Copperas Cove | ~$240K | 11% below avg | ~2.0% | Quiet, scenic, close to healthcare and Fort Cavazos |
| 05 | Georgetown | ~$430K | Near national avg | ~1.7–1.9% | Sun City, vibrant downtown, nationally recognized retirement destination |
| 06 | Salado | ~$500K | Above avg | ~1.7–1.9% | Boutique village lifestyle, arts, restaurants, low-maintenance luxury |
| 07 | Burnet | ~$340K | 5% below avg | ~1.6–1.9% | Hill Country living, lakes, slower pace |
| 08 | Lampasas | ~$285K | 9% below avg | ~1.6–1.8% | Historic town, affordable homes, small-town charm |
| 09 | Waco | ~$265K | 10% below avg | ~1.8–2.0% | Entertainment, Magnolia, healthcare, affordable housing |
| 10 | Harker Heights | ~$315K | 6% below avg | ~1.9–2.1% | Upscale neighborhoods, shopping, healthcare access |
*Home prices are approximate regional medians and vary by neighborhood and home type.
**Texas has no state income tax, but property taxes are higher than the national average and vary by taxing district. Seniors may qualify for homestead and over-65 exemptions that reduce their tax burden. Educational information only — confirm current rules with your county appraisal district and a Texas CPA.
Why here
Why Central Texas Is So Popular After 55
- No state income tax, allowing retirees to keep more of their retirement income.
- Mild winters with year-round outdoor recreation.
- Strong healthcare systems, including Baylor Scott & White in Temple and Ascension Seton and St. David's in the Austin area.
- Many single-story, lock-and-leave homes and active adult communities.
- Easy access to Austin, Waco, and the Texas Hill Country without paying Austin housing prices.
Best value picks
Four Ways To Win Here
Best overall value
Temple
Affordable housing, outstanding healthcare, shopping, restaurants, and easy access to both Austin and Waco make Temple one of the strongest choices for retirees.
Best luxury retirement
Georgetown
Home to the renowned Sun City Texas community, Georgetown offers an active lifestyle with golf, clubs, walking trails, and a vibrant historic square.
Best small-town lifestyle
Salado
Perfect for buyers looking for boutique shopping, art galleries, local dining, and beautiful custom homes in a walkable village atmosphere.
Best budget-friendly choice
Killeen
If maximizing housing affordability is your priority, Killeen offers some of the lowest home prices in Central Texas while still providing access to healthcare, shopping, and major highways.
Where affordability meets lifestyle
Price Is Only Half The Decision
A $245K home an hour from specialty care can cost you more in the long run than a $430K home three miles from it. The right answer is the city where your monthly carrying cost, your healthcare access, and the life you actually want all line up.
Questions
Central Texas Retirement FAQ
What is the most affordable city in Central Texas for retirees?
Killeen has the lowest median home prices in the region at roughly $245K, with Copperas Cove and Temple close behind. Temple is often the better overall value because it pairs low prices with a major medical center.
Where is the best place to retire near Austin without Austin prices?
Georgetown, Belton, Salado, and Burnet all sit within an hour or so of Austin and offer single-story and lock-and-leave homes at a fraction of Austin's cost per square foot.
How do Texas property taxes affect downsizing after 55?
Texas has no state income tax, but property tax rates run higher than the national average and vary by taxing district. Homeowners 65 and older may qualify for a homestead exemption, an additional over-65 exemption, and a school-tax ceiling that can often be partially transferred to a new Texas homestead.
Which Central Texas city has the best healthcare for seniors?
Temple is home to Baylor Scott & White, one of the largest medical centers in Texas, and Belton, Killeen, Harker Heights, and Copperas Cove are all a short drive away. Georgetown and Round Rock have strong access to Ascension Seton and St. David's.
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