If you are currently considering moving to Houston, Texas you’ll want to know the cost of living. The cost of living in Houston is lower than the national average overall, with lower grocery and health care costs, and significantly lower housing costs. This big Texas city is generally quite affordable, with expenses lower than other major cities, and even the national average. Utilize our guide to cost of living expenses to help you plan your upcoming move to Houston.
To help you calculate if moving to Houston is in your budget, we pulled a list of factors that affect Houston’s cost of living. See below for more details on each.
- Housing costs
- Transportation
- Utilities
- Food prices
- Taxes
- Miscellaneous expenses
- Average income
- Entertainment
Cost of housing in Houston, Texas
When moving to Houston, you’ll have many options for housing. Houston, Texas is a sprawling metropolis, so you’ll have a wide variety of apartments to check out. That means no matter your budget, you can find a great place to rent in this city. Understanding the rental market landscape and the cost of housing in Houston can help inform your decisions while you hunt for an apartment and prepare your move. Compared to its Texas neighbor, Houston is 11% more affordable than Dallas.
Analysis of the Houston cost of living in 2019 found that Houston’s rental market was less expensive than the median in the United States. Those relatively inexpensive rental costs hold true today as well. You can frequently find one-bedroom apartments in Houston for around $1,250 per month. You can expect to pay a little more each month for two-bedroom apartments, but you’ll likely still pay less than the national average if you’re renting in Houston, TX.
Neighborhoods in Houston
Identifying the ideal neighborhood is an important step in planning any move. The cost of living in Houston, TX will depend largely on which area you decide to call home. Houston neighborhoods you should consider include the following:
- Downtown Houston
- Midtown
- Memorial
- Katy
- The Woodlands
- Montrose
- Nassau Bay
- Houston Heights
Each of these areas in Houston offers a variety of shops, restaurants, and other amenities, so you can pick the most important to you when searching for your apartment or house in Houston.
Cost of transportation in Houston
Moving to a new city means learning the common modes of transportation and their costs. Houston is a driving city, and you may encounter a long commute. You can also make use of Houston’s public transportation system, called Metro. The local bus, METRORail, and METRORapid routes cost $1.25 per ride. A reloadable day pass card is available that caps your public transit expenses at $3 per day, regardless of how many times you ride. If you choose to drive a personal vehicle, gasoline expenses are slightly lower than the national average. Taxis and ride-sharing options are also available as affordable options for travel.
Cost of Utilities in Houston
If you’re wondering about what you’ll have to pay for your average water and gas bill in Houston, you’re not alone. Utilities are a key part of any cost of living budget calculation. According to Numbeo, your basic utilities (based on a 915-square-foot apartment) will cost around $145 per month. The average internet package will add about $60 to your utilities for the month.
Cost of food in Houston
Houston’s restaurant prices are slightly higher than national averages. However, you can save big if you’re shopping for groceries and plan to do a lot of cooking at home. The price of groceries in Houston is somewhat lower than the national average, so head to the supermarket to enjoy some savings and stick to your budget. Milk is around $3 a gallon, while a loaf of bread costs about $1.65.
You can pick up lunch, including a beverage, in the business district for $15 or less. A fast-food combo meal is $8, right in line with the national average. A basic dinner for two at your local neighborhood pub will cost you about $53, while dinner for two at an Italian restaurant that includes an appetizer, main course, wine, and dessert will run you about $73.
Taxes in Houston
Texas has a state sales tax of 6.25%, and Houston tacks on 2% for city and county taxes, bringing the sales tax to 8.25%. Texas does not have an income tax, offering cost savings and an incentive to live in the great state of Texas. You can expect your property taxes to be around 1.82%, which is based on your home’s appraised value.
Other expenses to consider
A housekeeper will cost you about $23 per hour to do light cleaning so you can have more free time to enjoy the sights and sounds of Houston. If you want to join a fitness center to work out, you can expect to pay $40 to $60 per month, depending on location and amenities. You can take a friend to the movies for $25, but the snacks will cost you extra. Childcare is $980 per month, and international primary school is $20,166, both lower than the national average, especially for metropolitan areas.
Average Houston income and job market
If you are planning on moving to Houston for work, the job market is an important consideration. According to the U.S. Census Bureau, the average annual household income is $52,338, with the average individual income at $29,259. Future job growth is predicted to be 30.9%, which is just slightly below the national average of 33.5%. The top industry in Houston is the energy industry, followed by biomedical research, aerospace, health care, and advanced manufacturing.
The cost of living in Houston is lower than in many other places in the country — the Houston cost of living is about 2% lower than the national average. If it’s life in the big city you’re after, Houston also does stack up nicely compared to other similar U.S. cities. Houston has a lower cost of living than Austin or Dallas, and it’s much less expensive than cities like New York or San Francisco.
Cost of entertainment in Houston
You won’t be short of new places to see, and fun activities to plan when moving to Houston. Entertainment will be a factor in your cost of living in Houston. This city is a large metropolis with a plethora of things to see and do. A few favorites include:
- Houston Museum of Natural Science – Prices for regular admission are $25 for adults and $16 for children (as of November 2021)
- Space Center Houston– General admission tickets for adults are $29.95, $24.95 for children ages 4-11, and free to children under 4
- Houston Zoo– While prices vary by date and time of visit, the average price is $24 per adult and $19 per child
- Museum of Fine Art-General admission is $19 per adult and free to children under 12, with extra cost for special exhibits
- Minute Maid Park (Houston Astros) – Tickets can be found as low as $14 with an average price of $77
- Water Wall– Free to the public
- NRG Stadium (Houston Texans) – Tickets as low as $17, or as high as $215 for 50 yard line
Whether you’re considering a move to Houston, or a short term stay, factoring in the cost of living is an important component of planning your budget. Houston offers a wide variety of entertainment options, while still maintaining a lower rental price range than the national average. Houston’s southern charm, pleasing temperatures and affordable cost of living may just make this Texas city the perfect place for you to call home.
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