Cost of Living in Horseshoe Bay, TX

With a cost of living index of 121, Horseshoe Bay, TX is a notably expensive place to live. Living here is 21% more expensive than the national average and 34% above the Texas state average of 88. Horseshoe Bay is a small community of 4,534 residents.

Housing costs are the biggest factor in Horseshoe Bay's cost of living. The median monthly rent is $1,575 (19% above the US median of $1,319), and the median home value sits at $489,100 (60% above the national median of $304,900). At current prices, the median home costs roughly 4.7x the median household income — a stretch for many buyers, though not uncommon in today's market.

The median household income in Horseshoe Bay is $105,024, which is 40% higher than the national median of $75,149. Residents spend roughly 18% of household income on rent. This is a comfortable ratio, well below the 30% threshold that financial experts recommend as a maximum. While incomes are above average, they more than offset the higher cost of living.

Climate is another factor for anyone considering a move to Horseshoe Bay. The area sees an average annual temperature of 67.5°F, with summers averaging 83°F and winters around 51°F. Annual rainfall totals 28.4 inches spread over roughly 76 days. The mild climate is a draw for many residents and keeps utility costs moderate year-round.

Data sources: US Census Bureau (ACS 2023), Zillow Home Values, HUD Fair Market Rents, BEA Regional Price Parities, BLS Average Prices, and NOAA Climate Normals. Updated monthly.