Knox City's housing stock is typical of a small West Texas farm town: modest, single-family homes on wide streets, many built in the mid-20th century, alongside a smaller number of newer homes. Lots are generally larger than in urban settings, and the town's modest population means housing is oriented toward primary residents rather than investment or second-home buyers. The agricultural and petroleum economy shapes the market's steady, low-turnover character, and surrounding rural land offers additional acreage options for those seeking country living near town.

Life in Knox City centers on the rhythms of agriculture and the close ties of a small rural community. Local schools, churches, and high school sports are central to daily life, and the town functions as a gathering point for the surrounding farms and ranches. Residents value the wide-open landscape, dark skies, and neighborly familiarity of West Texas. For a broader range of shopping, dining, and services, Wichita Falls lies to the northeast and Abilene to the south, both reachable by highway.

Knox City is served by Knox City-O'Brien CISD, a consolidated school district formed from the Knox City and O'Brien communities. The district operates campuses in Knox City and fields the town's athletic programs, which are a major focus of community life. The consolidated district reflects the broader trend in rural West Texas of combining small districts to preserve local schooling, and it serves students from both the town and the surrounding countryside.

Knox City sits at the junction of State Highways 6 and 222. State Highway 6 runs north about 12 miles to Benjamin, the Knox County seat, and south toward Rule and the Haskell area, while State Highway 222 runs east toward Munday. U.S. Highway 82 passes through Benjamin to the north, providing the main route to Wichita Falls to the northeast and toward the South Plains to the west. Travel is car-based, and the town's rural location means the nearest commercial air service is in Wichita Falls or Abilene.