Cost of Living & Housing in Central Texas (Waco / Killeen-Temple)
This region's four member places sit within a genuinely tight $228,000-$309,731 price band -- the narrowest spread of any region in this Texas dataset -- and all four run meaningfully below the national median. The differentiator across them is less about price tier and more about what each city's local economy is built on: college town, military installation, regional healthcare hub, or military-adjacent bedroom suburb.
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Learn moreKilleen: The Most Affordable, Most Fort Cavazos-Tied Market
Killeen ($228,000, softening 9.53% year-over-year in one recent reading) is the most affordable of the four, and its housing market is directly and structurally shaped by Fort Cavazos's PCS-driven rental turnover rather than conventional civilian appreciation dynamics -- a genuinely different kind of housing market than the other three cities in this region. Its combined property tax rate (roughly 1.98% across city, county, school district, and community college) and homeowners insurance (averaging $5,063/year, about 5% above the Texas state average) both run above the national median.
Harker Heights: A Real, Sourced Premium Over Killeen
Harker Heights ($304,818-$322,000 depending on window, roughly 20%-33% above Killeen's own median) is genuinely distinct from its larger neighbor, not just Killeen under a different name -- multiple real estate sources describe it as where officers, senior NCOs, and military families who want newer construction and larger lots choose to live. Median household income runs $81,190 here versus Killeen's $60,977, and Harker Heights' own CrimeGrade-sourced crime rate reads meaningfully lower than Killeen's. Harker Heights carries its own above-national-median property tax burden (1.51% effective rate, spread across five separate taxing entities), so the price premium doesn't come with a tax-rate discount.
Temple: Healthcare-Anchored, the Highest Income of the Four
Temple ($266,230, down a modest 3.2% year-over-year) carries the highest median household income of any market in this region ($68,204) and the region's most notably favorable homeowners insurance costs (averaging $1,861/year, well below both Killeen's figure and the Texas statewide average) -- a real, disclosed contrast tied to Temple's own risk profile rather than a data inconsistency. Temple's growth (roughly 24% since the 2020 Census, the fastest of the four) reflects its role as the region's dominant regional healthcare hub.
Waco: The Region's Priciest Market, Driven by Baylor and Tourism
Waco ($275,000, up a modest 3.1% year-over-year) sits at the region's upper price tier, reflecting both Baylor University's presence (20,626 students inside a city of roughly 146,000-149,000) and Magnolia Market at the Silos' real, sustained tourism boom, which has pulled well over two million visitors a year into Waco's downtown since 2015-2016. Waco's effective property tax rate (2.09% citywide) is the highest of the four member places, and its homeowners insurance costs (a disclosed $2,131-$5,148/year range across sources) carry real uncertainty pending an address-specific quote.
Key takeaways
- All four member places price within a tight $228,000-$309,731 band, well below the national median -- the narrowest price spread of any region in this Texas dataset.
- Killeen ($228,000) is the most affordable, with a housing market genuinely shaped by Fort Cavazos's PCS-driven rental turnover rather than conventional civilian dynamics.
- Harker Heights commands a real, sourced 20%-33% premium over Killeen, tied to newer construction and a higher median household income ($81,190 vs. Killeen's $60,977).
- Temple carries the highest median household income ($68,204) and the most favorable homeowners insurance costs in the region; Waco carries the highest price and the highest property tax rate.
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