Cost of living is the amount of money needed to cover basic expenses in order to cover an individual’s basic expenses in a particular location and time period. This generally includes housing, utilities, transportation, healthcare, food and groceries, and other miscellaneous costs.
Based on recent data, Houston cost of living is 6% lower than the national average. The average cost of living for a single adult is $2,886 per month. For a family of four, the average cost of living is $6,120 per month.
Learning about the cost of living for a particular city or state is helpful if you are considering moving to that location. This information can help you assess if your plans of relocating would be beneficial for you and your family given your expected income.
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Housing Costs in Houston
Housing is a major consideration when assessing the cost of living in Houston. The good news is housing in the Space City is quite affordable, 24.6% lower than the national average.
Houston’s median home price is $345,000, while the national average of $416,000. The median price per square foot in Houston is $180, significantly lower than that of Chicago, the city most comparable in population to Houston, which is $270.
The table below shows the median home prices across some of Houston’s most popular neighborhoods:
| Neighborhood | Median Home Price |
|---|---|
| Downtown | Low $400s |
| Midtown | High $300s |
| The Heights | Mid-to-high $600s |
| Memorial | $700s |
Houston’s rental market comprises a mix of property types, including condos, apartments, and single-family homes. The average rent in is $1,350 per month, well below the national average of $1,700.
Rent varies depending on the neighborhood. Let’s take a quick look at some of the cheapest and most expensive places to rent in Houston:
| Neighborhood | Average Rent |
|---|---|
| Fourth Ward | $2,200 |
| Downtown Houston | $2,153 |
| Afton Oaks - River Oaks | $2,146 |
| Hidden Valley | $856 |
| Woodglen Village | $856 |
| South Park | $727 |
Affordable Neighborhoods in Houston
The neighborhoods in the city of Houston are diverse, catering to different lifestyles and budgets.
If you’re looking for the best affordable neighborhoods in Houston, you’ll be surprised at how far your dollar can go.
Below is a list of affordable neighborhoods that offer the best of living in Houston without breaking the bank:
- Downtown
- East Downtown
- Oak Forest
- Spring Branch
- Maplewood
- Willow Meadows
- Midtown
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Luxury Living in Houston
The neighborhoods in Northeast Houston, TX, are coveted for their beautiful landscapes, with several waterfront options.
If you are in the market for luxury homes, these locations are excellent options:
Utility Expenses in Houston
The overall cost of living index for utilities in Houston is 96.5, slightly below the national average.
In Houston, the average cost of electricity is $0.14 per kilowatt-hour (kWh), lower than the national average of $0.17 per kWh.
Water service costs in Houston range from $35 to $90. Houston Water Service provides water service to Houston homes and commercial accounts, while Houston Public Works manages sewage services for residents.
The average monthly cost of internet in Houston ranges between $40 and $130. Internet providers in the area include AT&T, Spectrum, and Comcast. If you choose to add cable service, the total increases by $50 to $150.
Phone rates vary depending on the carrier and the plan, but the cost for cell phone service in Houston ranges between $50 and $130 per month. Carriers in the area include AT&T, Verizon, and T-Mobile.
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Transportation Costs in Houston
As one might expect from the Energy Capital of the World, transportation costs are lower than the national average. A Houston resident saves around $700 a year on transportation costs compared to the national average.
Houston MetroRail trains and Houston Metro buses provide public transportation in the city. You can get a Houston Metro Q card to easily reload your balance for train and bus fares, which start at $1.25. Free unlimited transfers in any direction are available for up to three hours.
Mobile ticketing options are also available for Local Bus, METRORail, METRORapid, and park and ride. You may also get a day pass and avail of unlimited rides for $3 per day.
For those with vehicles, gas prices in Houston fluctuate throughout the year. In the summer, when more people drive going to their vacation destinations, prices average $3. Liability insurance averages $744 per year, while full coverage may average around $1,956.
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Food and Groceries in Houston
Overall, healthcare costs in Houston are around 5% lower than the national average. Healthcare services and infrastructure include the Texas Medical Center.
A visit to the dentist costs approximately $100 for an initial exam. Dentist fees can range from $19 to $100 for teeth cleaning, while orthodontists usually charge an average of $1,700 for braces.
Optometrists typically charge $100 for an eye exam. Podiatrists in the area typically charge about $50 for an initial exam. Those with pets can expect to pay between $50 and $250 for a routine visit to the vet.
Childcare Costs in Houston
The monthly cost of daycare in Houston is $680 on average. Most centers charge between $150 and $200 per week. The cost depends on the level of care needed, the facility, and extra services like learning a language.
There are `over 2,000 daycares in Houston offering full-time, part-time, and drop-in services. Many schools also offer after-school programs, ranging from $300 to $600 per semester.
The City of Houston, YMCA, Mad Science, Zenith Learning, Kidventure, MECA, and the Wesley Community Center offer more affordable or free options for before and after-school care.
Nanny services in Houston average approximately $15 per hour. The rate varies depending on the nanny’s skills.
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Taxes in Houston
Tax rates fall into three general categories: sales taxes, income taxes, and property taxes.
In Houston, the sales tax rate is 8.25%. On top of that, there is an additional 7% tax on hotels and motels, and 5% from restaurants. There is no income tax in Texas. The average property tax in Houston is 2.31%.
Cost of Living Comparison: Houston vs Other Cities
If you are also considering other cities in Texas, such as Dallas and Austin, we can compare Houston with these locations by examining their respective cost-of-living indices.
The table below shows Dallas vs Houston cost of living and Austin vs Houston cost of living, as well as the cost-of-living indices for the state of Texas and that of the United States.
This index is based on a national average of 100. For example, if the COL index of housing in a given area is 75, then it is 25% lower than the national average.
| Cost of Living | Houston | Dallas | Austin | Texas | US |
|---|---|---|---|---|---|
| Overall | 96.9 | 100.2 | 129.1 | 94.2 | 100 |
| Grocery | 98.1 | 99.1 | 96.7 | 93.7 | 100 |
| Health | 95.1 | 98.1 | 101.6 | 100 | 100 |
| Housing | 75.4 | 89.1 | 189 | 83.5 | 100 |
| Utilities | 96.5 | 100 | 99.1 | 99.2 | 100 |
| Transportation | 119 | 117.1 | 109.9 | 103.3 | 100 |
| Miscellaneous | 105.9 | 107.8 | 105.9 | 83.2 | 100 |
From the numbers provided above, you will see that living in Houston is more affordable than single adult living in Dallas and Austin, based on their overall cost of living index.
Note: This image may include elements generated by artificial intelligence (AI).
Conclusion
The cost of living in Houston, TX, is affordable, making moving to this city an attractive choice for many.
If you’d like to know more about Houston, please give me a call today at (281) 546-5675 or send me an email at mbjr73@yahoo.com to schedule an appointment.
Frequently Asked Questions
Is Houston an expensive city to live in?
Houston is not expensive to live in when compared to the national average. For a single adult, the average cost of living is $2,886 per month. For a family of four, the cost of living is $6,120 per month.
How much does it cost to rent an apartment in Houston?
The average monthly rent in Houston is $1,350, significantly lower than the national average, which is $1,700.
How much should I budget for groceries in Houston?
A single adult can expect to spend around $250 for a month’s worth of groceries in Houston. For a family of four, the average budget is at least $700 per month.
