Understanding the Cost of Living in Highland Village, TX
If you're weighing the cost of living in Highland Village, TX, the short version is this: it's not cheap. Property values are shaped by high demand in a geographically constrained market, and everything else - taxes, utilities, commuting - layers on top of that.
Overall Cost of Living Index vs. Texas Averages
Depending on the model you use, Highland Village's cost of living index lands somewhere between 107.6 and 130, against a U.S. national baseline of 100. Either end of that range puts it well above the Texas state average, which hovers around 94.
Housing is doing most of the heavy lifting on that number. Groceries and transportation track closer to national baselines - housing is what pulls the overall index up.
Is Highland Village Expensive?
Compared to both the state and national averages, yes. The combination of high median home values and local tax rates makes this one of the pricier suburbs in Denton County. You should expect housing to consume a larger share of monthly income here than it would in most other parts of Texas.
Home Prices and Rent in Highland Village
The median sale price in Highland Village is currently around $588,000. Homes spend roughly 25 days on market before going under contract - long enough to do your homework, not long enough to drag your feet.
Inventory is tight. About 48 homes are actively listed, with just 2.3 months of supply available recently. Sellers have the upper hand: homes are selling at about 99% of list price, and nearly 24% of recent sales closed above asking.
Average Rent and Leasing Costs
Apartment rents across all unit sizes average between $1,501 and $1,616 per month. A standard one-bedroom typically runs $1,500 to $1,534, while three-bedroom apartments range from $2,817 to $3,471.
Single-family rentals cost noticeably more - between $3,147 and $3,983 per month depending on bedroom count and location.
How Housing Compares to the Broader Texas Market
At nearly $588,000, the median here clears what you'd find in most other Texas suburbs without much effort. Some datasets show higher-end single-family listings pushing median estimates closer to $900,000. Buyers looking to spend less often look at neighboring towns, though they'll typically give up the immediate lake access.
Everyday Expenses: Utilities, Groceries, and Transportation
Monthly utility bills average between $219 and $247 - roughly 12% to 20% above the national average. Texas summers are long and air conditioning is not optional, so that gap makes sense.
Groceries offer a bit of relief, coming in slightly below the national average. A gallon of milk runs around $4.25 to $4.65, and a loaf of bread costs about $3.57 to $4.08.
Commuting and Transportation Costs
Transportation costs sit close to the national average and slightly above the Texas state index. Gas has recently run $3.02 to $3.09 per gallon locally. Most residents commute via I-35 East or West; the DCTA Highland Village/Lewisville Lake Station also gives commuter rail access to Denton and downtown Dallas.
Healthcare and Education Expenses
Healthcare runs 4% to 11% above the national average. A standard doctor visit averages $138 to $151, and a routine dentist appointment falls between $123 and $133. Childcare and education indices land very close to the national average.
Sales and Property Taxes
The combined sales tax rate in Highland Village is 8.25%. That breaks down as the 6.25% Texas state sales tax, a 1.00% city sales tax, a 0.50% Highland Village 4B economic development sales tax, and a 0.50% levy for the Denton County Transportation Authority.
Denton County Property Tax Rates
Denton County adopted a property tax rate of roughly $0.1859 per $100 of valuation for the 2025-2026 fiscal year - a 39-year low for the county on its own. But homeowners pay a combined rate that stacks city and school district taxes on top of the county figure.
In Highland Village, that combined effective rate totals approximately $1.82 per $100 of valuation: the city rate (roughly 0.50), the county rate (0.1859), and the Lewisville ISD rate (about 1.13).
Income Expectations and Salaries
This is an affluent community. Median household income estimates range from $162,879 to $167,950 depending on the source, with some models placing the average household income between $178,000 and $184,000. For context, the broader Texas median household income sits around $79,721.
What You Need to Live Comfortably
With median home prices near $588,000 and property tax rates around 1.82%, housing alone accounts for a substantial piece of take-home pay. There's no universal salary threshold - your down payment size and other obligations matter just as much. Run your own monthly numbers before you commit to anything.
Why Homes Cost More in Highland Village
The land situation is straightforward: 6.5 square miles bordered by Lewisville Lake leaves almost no room for new housing tracts. When supply can't grow, prices don't ease.
Demand pressure comes from multiple directions. The proximity to DFW airport makes the city a practical base for frequent travelers and regional commuters, and that convenience carries a price.
Local Amenities and School Zoning
On the lifestyle side, you've got lake recreation anchored by Pilot Knoll Park, Unity Park, and Doubletree Ranch Park, with retail and dining centered around The Shops at Highland Village.
School zoning adds a meaningful layer to property demand. Homes here fall within the Lewisville Independent School District, and many properties feed into the Marcus High School attendance zone - a detail that factors into buyer decisions in a real way.
Estimating Your Monthly Budget
National averages will leave you underprepared for what this market costs month to month. You need to build your budget around the specific local tax rates and utility figures.
A worked example is the most direct way to see what you're dealing with.
A Worked Monthly Example
Start with a buyer purchasing a median-priced home at $588,000 with a 20% down payment. At the 1.82% combined property tax rate, they're setting aside roughly $890 per month for taxes alone - before touching the mortgage.
Add average utility costs of $247, standard home insurance, and commuting expenses that vary depending on whether you're driving to Dallas or working remotely, and the full monthly picture comes together quickly. The mortgage payment is the starting point, not the ceiling.
Pros and Cons of Relocating to Highland Village
The core trade-off is straightforward: you pay more to live in a compact, established community with direct lake access. Because the city's boundaries are set and development space is effectively gone, you're not dealing with the construction activity and growing-pains of an expanding suburb.
The barrier to entry is real. Limited inventory and fast-moving transactions mean buyers face serious competition for whatever comes to market.
Weighing the Trade-Offs
On the plus side: proximity to DFW airport, commuter rail access, and localized shopping. The downsides are almost entirely financial - the upfront cost of getting into the market and the ongoing property tax obligation once you're there. If you're serious about this area, start your search early and have your financing squared away before you need it.
Frequently Asked Questions
What salary do you need to live comfortably in Highland Village, TX?
It depends on your housing situation and down payment. With median household incomes in the area ranging from $162,000 to over $167,000, most residents earn well above the state average to comfortably afford median home prices near $588,000.
Why is Highland Village so expensive compared to other Texas cities?
Limited land and sustained demand. The city covers just 6.5 square miles bordered by Lewisville Lake, and buyers pay a premium for proximity to DFW airport, localized retail, and Lewisville ISD schools.
What income is considered middle class in Highland Village, TX?
It depends on how you define the middle tier of this specific market. With median household income sitting around $167,950, a household would need to earn near or above that figure to maintain a standard middle-class lifestyle within the city limits.
How much are property taxes for homeowners in Highland Village?
The combined effective property tax rate is approximately 1.82% per $100 of valuation. That total includes the 0.50 city rate, the 0.1859 Denton County rate, and the Lewisville ISD rate.
How does the cost of living in Highland Village compare to nearby Dallas-Fort Worth suburbs?
It's generally more expensive than the broader Dallas-Fort Worth average. The overall cost of living index sits between 107.6 and 130, driven primarily by single-family home prices that routinely exceed those in neighboring towns.
Is Highland Village, TX a good place to live for families buying a home?
Many buyers pursue the area specifically for its established neighborhoods and Lewisville Lake access. Strong demand for homes zoned to the Marcus High School feeder pattern keeps the local real estate market consistently active.
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