Houston Cost of Living (2026)
Houston’s cost of living is about 6% below the U.S. average — driven mainly by housing roughly 20% cheaper than the national norm — making it one of the most affordable large metros in the country.
COL index (US avg = 100)
94
Median home value
$265,000
Median 1-BR rent
$1,350/mo
Effective property tax
~1.77% effective
Houston cost of living vs. the U.S. average
| Category | Houston index | U.S. average | Difference | What it means |
|---|---|---|---|---|
| Overall | 94 | 100 | -6% | 6% below U.S. average |
| Housing | 80 | 100 | -20% | 20% below average — Houston’s biggest advantage |
| Groceries | 96 | 100 | -4% | slightly below average |
| Utilities | 92 | 100 | -8% | below average despite summer A/C load |
| Transportation | 96 | 100 | -4% | car-dependent; near average |
| Healthcare | 97 | 100 | -3% | near average; Texas Medical Center access |
Index base: 100 = U.S. national average. A value of 94 means ~6% below the national average.
Sources & methodology
- COL composite index: C2ER / BLS / BEA regional price parities (2024–2025), base 100 = U.S. average
- Property tax: Texas Comptroller of Public Accounts + Harris County Appraisal District (2025)
- Median home value: U.S. Census ACS 2024 + Houston Association of Realtors market data
- Median rent: RentCafe observed rent, Q1 2026
- Comfortable salary (~$62,000): derived from MIT Living Wage + COL index, 2025
Figures accessed May 2026. Cost-of-living estimates vary by source and household; use the calculator below for your own income and city pair.
Compare Houston to your current city
Cost of Living Comparison
Compare how far your dollar goes between cities. Index of 100 = national average.
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Frequently Asked Questions
Is Houston cheap to live in?
Relatively, yes. Houston’s overall cost of living is about 6% below the U.S. average (composite index 94, base 100), largely because housing runs roughly 20% below the national norm. The median home value is around $265,000 and a median 1-bedroom rents for about $1,350/mo (RentCafe, Q1 2026). It is one of the most affordable major U.S. metros.
What salary do you need to live comfortably in Houston?
A single person needs roughly $62,000 per year to live comfortably in Houston as of 2025, derived from the MIT Living Wage estimate adjusted for Houston’s cost-of-living index. Families and higher-cost neighborhoods (River Oaks, West University) require more. Texas has no state income tax, so take-home pay stretches further than the gross figure suggests.
Why is housing so cheap in Houston?
Houston has no formal zoning code and abundant developable land, which keeps housing supply high and prices down — its housing index is about 20% below the U.S. average. The trade-off is higher property taxes (about 1.77% effective in Harris County) that offset some of the lower purchase price.
Is Houston or Dallas cheaper?
Houston is cheaper overall. Houston’s composite cost-of-living index is about 94 versus Dallas at about 102 — roughly an 8% gap, driven mainly by cheaper Houston housing and lower utilities. See our Houston vs. Dallas cost-of-living comparison for the category-by-category breakdown.