| Index | Houston | Texas | National |
| Cost of living | 103 | 94 | 100 |
| Groceries | 103 | 98 | 100 |
| Health care | 98 | 98 | 100 |
| Housing | 105 | 83 | 100 |
| Transportation | 101 | 98 | 100 |
| Utilities | 104 | 103 | 100 |
| Lifestyle & Entertainment | 99 | 98 | 100 |
| Household Items | 101 | 98 | 100 |
| Education & Childcare | 108 | 98 | 100 |
Understanding the cost of living in Houston can help future residents assess whether their current financial situation aligns with the expenses they will encounter. It enables them to plan for potential changes in their budget and lifestyle. The Houston cost of living index is 103, which is 3% higher than the national average. The cost of living index is calculated by taking into account multiple categories, which encompass both the cost of everyday expenditures and larger expenses as well.
In Houston, daily expenses such as food, housing, lifestyle expenses, transportation and health care are in line with comparable areas and about average when compared to all cities across the nation. This ensures that the cost of living in Houston will resemble that of an average city, contributing to a manageable cost of living.
The real experts on a city are its residents. That's why we reached out to 39 locals to get their views on the cost of living in Houston. We surveyed the residents and asked them if they felt like prices were affordable or out of reach. The results were as follows. 36% found it budget-friendly with decreasing prices, while 64% said it's simply not affordable as prices have continued to rise.
Is Houston an affordable place to live? It's a good question and one that you might want to ask when considering any new city, as affordability can play a huge role in the decision making process. The cost of living index (which we covered above), as well as housing costs and income levels play a vital role in determining the affordability of an area. The median home price in Houston is 1.4% higher than the national average, while the average monthly rent prices are 12.5% higher than average. The affordability of any location can also be influenced by median income levels. Houston has a median household income of $80,788, which is 0.7% lower than the national average.
Taxes: Cities that impose higher taxes, including sales and income taxes, can contribute to an escalated cost of living. The added expense of taxes on everyday goods like clothing and food naturally results in higher overall costs. Similarly, a higher income tax rate can further elevate the cost of living. In Houston, the general sales tax rate starts at 6.25%, and income tax rates begin at 0%.
Subsidies: Some cities and states may extend government subsidies or aid programs aimed at reducing the cost of living for their residents. These initiatives encompass diverse forms of support, including Medicare, Medicaid, housing subsidies, low-income home energy assistance programs, school lunch programs, supplemental nutrition assistance programs, student loans, electric vehicle tax credits, affordable care act subsidies and farm subsidies. Regions with limited subsidy provisions may witness an increase in their overall cost of living.
Transportation: When public transportation options are limited or non-existent, residents frequently resort to vehicle ownership, which can significantly contribute to the overall cost of living. Monthly financial obligations encompass fuel, insurance, regular maintenance and potentially lease or financing expenses. In Houston, the transportation index is 0.9% higher than the national average.
The Houston cost of living data displayed above uses a U.S. average baseline of 100 to provide a practical way to compare living expenses across cities. Housing estimates incorporate U.S. Census home price and rental data, while all other values are generated using AI-assisted models based on everyday expense expectations, regional pricing trends, climate, transportation patterns, and local economic conditions. These values are designed for directional city-to-city comparisons.
| Cost of living index | |
| Groceries index | |
| Health care index | |
| Housing index | |
| Transportation index | |
| Utilities index | |
| Lifestyle index | |
| Household index | |
| Educare index |
| Median Income | Per Year | Per Month | Max Budget (28% DTI) | Max Budget (36% DTI) |
| Owners | $122,960 | $10,247 | $2,869 | $3,689 |
| Renters | $60,672 | $5,056 | $1,416 | $1,820 |
| State | General Sales Tax | With Max Surtax |
| Texas | 6.25% | 8.25% |
| State | Income Tax (Low) | Income Tax (High) |
| Texas | 0% | 0% |
| City | Population | Cost of Living Index | National Avg. |
| Fifth Street, TX | 2,256 | 82 | 17.9% |
| Jacinto City, TX | 10,826 | 87 | 13.0% |
| Galena Park, TX | 11,097 | 88 | 11.8% |
| Aldine, TX | 16,737 | 91 | 9.4% |
| South Houston, TX | 17,971 | 90 | 9.5% |
| Houston, TX | 2,385,298 | 103 | 2.8% |
| City | Population | Cost of Living Index | National Avg. |
| Chicago, IL | 2,804,582 | 114 | 14.0% |
| Montréal, QC | 1,811,008 | n/a | |
| Toronto, ON | 3,013,752 | n/a | |
| Phoenix, AZ | 1,698,457 | 113 | 12.9% |
| Philadelphia, PA | 1,632,157 | 102 | 2.0% |
| Houston, TX | 2,385,298 | 103 | 2.8% |
Here are the best places to live in Texas
Safest Cities In The US
Check out the 10 safest cities in Texas
Safest States In The US