Cost of Living in Houston, TX

Population 2,300,419 · Texas · Data vintage 2023

90
Cost Index
(100 = US avg)
Page updated: · Data vintage: 2023 ACS 5-Year
Sources: Census ACS·BLS·NOAA·EPA·Zillow · Methodology

Houston is among the largest cities in Texas by population, with the kind of employment diversity and housing variation that comes with a major regional hub. At 6.7%, the local unemployment rate runs well above the US figure, pointing to structural rather than cyclical labor-market issues.

Cost Overview

Housing 83
Rent 100

Scale: 100 = US national average. Green < 90, Red > 110.

About the Cost of Living in Houston

The median home value in Houston is $253,400 — 17% below the national median of $305,000. Median rent runs $1,313/month, equal to than the national median of $1,314/month. The median household income of $62,894/year is 16% lower than the US median of $74,580. The local unemployment rate is 6.7%, above the national average of 4.8%. Texas charges no state income tax, a meaningful advantage for take-home pay. The climate averages highs of 79.8°F and lows of 62.5°F. Overall, Houston has a cost of living index of 90 versus the US average of 100, meaning it is 10% less expensive.

🏠 Housing

Median Home Value
$253,400
17% below avg
Zillow Home Value
$261,975
Zillow ZHVI
Median Rent
$1,313/mo
0% below avg
Zillow Rent
$1,541/mo
Zillow ZORI
Price-to-Rent Ratio
16.1x
Favors buying
Property Tax Rate
1.7%
Effective rate

HUD Fair Market Rents by Bedroom

Studio
$766
1 BR
$811
2 BR
$981
3 BR
$1,307
4 BR
$1,509
Owner-occupied 42.0%
Renter-occupied 58.0%

💰 Estimated Monthly Budget

Rent median rent
$1,313
Groceries national estimate
$400
Utilities local estimate
$88
Transportation local gas prices
$126
Estimated Total $1,927/mo

Estimates based on median data and national averages. Actual costs vary.

🛒 Food & Groceries

National BLS average prices (2023). Local prices may vary.

🥚
Eggs (dozen)
$0.548
🍞
White Bread (lb)
$1.912
🥩
Ground Beef (lb)
$5.61

🚗 Transportation

Avg Commute
29.7 min
10% above avg
Gas Price
$3.145/gal
0% below avg
Work From Home
11.7%

Commute Mode

Drove alone
69.7%
Carpooled
10.1%
Public transit
3.3%
Walked
1.9%
Bicycle
0.4%
Work from home
11.7%

Utilities

Electricity
$0.176/kWh
0% below avg

📋 Taxes

State Income Tax (flat) None
Total Sales Tax 8.2%
State rate 6.3%
Avg local rate 1.9%
Property Tax 1.7%

💼 Income & Employment

Median Household Income
$62,894
16% below avg
Per Capita Income
$41,142
Unemployment Rate
6.7%
39% above avg
Poverty Rate
19.7%
Labor Force Participation
67.1%

🎓 Education

Bachelor's degree+ 21.3%
Graduate degree 14.6%

👥 Demographics

Median Age 34.3
Male median age 34.1
Female median age 34.5

🌤 Climate

NOAA 1991–2020 Climate Normals

Avg High
79.8°F
Avg Low
62.5°F
Annual Precip
55.6"
40° 55° 70° 85° 100° JFMAMJJASOND High Low Precip
Month JanFebMarAprMayJunJulAugSepOctNovDec
High °F 646873798691939489827366
Low °F 465056626975777773645448
Precip" 4.092.853.284.085.426.094.595.445.765.783.904.34

💨 Air Quality

EPA AQS 2023 — county-level monitoring data

Median AQI 64 — Moderate
12.1%
Good air days/yr
205
Max AQI recorded
239
PM2.5 days
102
Ozone days

Frequently Asked Questions

What is the cost of living in Houston, TX?

Houston has a cost index of 90 (100 = national average). It is 10% below the national average.

What is average rent in Houston, TX?

The median gross rent in Houston is $1,313 per month based on 2023 Census data.

What is the average home price in Houston?

The median home value in Houston is $253,400 according to Zillow and Census data.

What is the median income in Houston?

The median household income in Houston is $62,894 per year (2023 ACS 5-year estimates).

What is the sales tax in Houston, TX?

The combined state and local sales tax rate in Houston is 8.2%. Texas has no state income tax.

Is Houston, TX affordable?

Houston is near the national average in terms of cost of living, with an index of 90 (100 = US average).

What is the weather like in Houston?

Houston has average high temperatures of 79.8°F and average lows of 62.5°F. Annual precipitation is 55.6". Data from NOAA 1991–2020 Climate Normals.