Lone Star Living: Real Estate Trends

Wages & Housing: Why Texas Needs a Modern Minimum Wage Policy

In real estate, we talk a lot about affordability. Home prices, interest rates, and property taxes are driving up costs and making homeownership feel out of reach. But one major factor that often gets left out of the conversation is wages.

This morning, I had a huge eye-opener as I was posting the Federal Minimum Wage Poster on our Intege Help Center site, as required by federal law. I was horrified, and honestly saddened, to be reminded that the minimum wage in Texas is still $7.25.

That hasn’t changed since 2009. I don’t think you can even drive through a fast-food restaurant and get a meal for $7.25 anymore.

For the average Texan dreaming of homeownership, stagnant income is one of the biggest roadblocks. And when we compare Texas to states like Colorado, the gap becomes clear and deeply concerning.

Colorado vs. Texas: A Tale of Two Wage Policies

In 2025, Colorado’s minimum wage is $14.81 per hour statewide. Cities like Denver have raised it even further to $18.81 per hour. These wages adjust each year with inflation, and local governments are allowed to set higher minimums to reflect the cost of living.

As I mentioned above, Texas is still at $7.25 per hour, the federal minimum wage that has not budged since 2009.

• That is more than 15 years without a raise.
• There is no inflation adjustment.
• There is no city-level control to respond to the rising cost of living in booming metros like Austin or Dallas.

What This Means for Homeownership

Let’s break it down.

A person working full-time at Colorado’s minimum wage earns about $30,804 per year before taxes. In Denver, that figure is closer to $39,125 per year.

In Texas, that same worker earns just $15,080 per year. That is half as much for the same 40-hour week.

Now ask yourself:

• Can someone making $15,000 per year afford a starter home in Austin, Dallas, or Houston?
• Can they qualify for a mortgage, save for a down payment, or keep up with rising rent while trying?

It is nearly impossible. This is not just a wage issue. It is a housing crisis.

Life at $10 an Hour: A Budget Breakdown

Let’s say someone is making a little more than minimum wage: $10 an hour and working full-time.

• Weekly pay before taxes: $400
• Monthly gross pay: $1,733
• Estimated take-home after taxes: about $1,515 per month

Here’s what that monthly budget could look like, but it still does not cover everything.

That leaves virtually nothing left over. No room for car repairs, dental bills, school supplies, debt payments, or even something as simple as a birthday gift.

When Even Healthcare Isn’t an Option

One of the most frustrating realities for low-income Texans is this: earning more doesn’t always mean you can access more, especially when it comes to healthcare.

In most states, low-wage workers can qualify for Medicaid if they earn below about $20,000 per year. But Texas has not expanded Medicaid, which means the eligibility rules are far stricter.

• A single parent with one child earning $10/hour (about $20,000 per year) earns too much to qualify for Medicaid in Texas.
• If you’re a working adult with no children, you typically can’t get Medicaid at all, no matter how low your income is.
• Even someone working full-time at minimum wage may have no access to affordable health coverage, unless their employer provides it or they qualify for ACA subsidies.

That $100 in the monthly budget we set aside for health insurance? For many Texans, it either isn't enough or simply doesn't exist. So they skip coverage, gamble on staying healthy, and hope no emergency knocks them off course.

This is yet another example of how wages, housing, and healthcare are all connected.

But What About Small Businesses?

This is where the conversation often stops. Understandably, small business owners get nervous when they hear the phrase "raise the minimum wage." Margins are thin. Payroll is one of the biggest expenses. The fear of being pushed over the edge is real.

But raising wages does not have to mean doing it alone. There are existing programs designed to help small businesses manage this burden:

• The Work Opportunity Tax Credit (WOTC) offers $2,400 to $9,600 in tax credits for hiring qualifying employees
• Texas Workforce Solutions boards offer wage reimbursement programs for on-the-job training
• The Skills for Small Business grant helps cover training costs for small employers
• The Small Business Health Care Tax Credit offsets benefit costs for companies with fewer than 25 employees

In the long run, better wages help small businesses by reducing turnover, increasing productivity, and growing the pool of people who can afford their products and services.

It Is Time for Texas to Take a Hard Look

Texas is proud of its growth, opportunity, and independence. But if we want to build a future where more Texans can afford to buy a home, raise a family, and invest in their communities, we need to modernize our wage policies.

This does not mean a one-size-fits-all approach. Other states have shown ways to adapt minimum wage standards by region, by industry, or through inflation-based adjustments. There is room for thoughtful, business-friendly solutions.

But doing nothing is not sustainable.

Wages and Real Estate Go Hand in Hand

Higher wages do more than support workers. They:

• Strengthen the pool of qualified homebuyers
• Stabilize neighborhoods
• Encourage long-term investment in communities
• Reduce dependency on temporary housing or high-cost rentals

When wages grow alongside the cost of living, homeownership becomes a reality, not just a dream.

Let’s Keep the Conversation Going

Housing affordability is not just about prices and interest rates. It is about whether everyday people can earn enough to build a life in the communities they love.

We owe it to our neighbors, our economy, and our future to have this conversation. And we owe it to ourselves as business owners to consider how smart wage policy can create a healthier and more sustainable Texas.