If you dream of living somewhere modern yet with some character that’s also affordable, you’ll appreciate the cost of living in Houston, TX, a city that checks all those boxes! Houston is a great place to consider for low-cost living. Known for its culture, diversity, and proximity to major employers, Houston might be where your future home awaits.

This insider's guide to the average cost of living in Houston includes expenses like transportation, health care, utilities, taxes, and even recreational activities. We’ll explore the many details you need to know about Houston, Texas, living expenses.

Summary:

• Cost of Living in Houston, TX

• Comparing Average Home Prices and Rent Costs in Houston

• Other Living Expenses in Houston, TX

  • Grocery Shopping and Dining Out in Houston

  • Transportation Options and Fuel Costs in Houston

  • Healthcare and Insurance Costs in Houston

  • Utilities, Internet, and Phone Expenses in Houston

  • Tax Rates in the Houston Area

  • Recreation Costs in Houston, Texas

• Average Salary in Houston

• Potential Tax Benefits for Homeowners in Houston

• Houston Home Prices by Neighborhood and Suburb

• Conclusion

Cost of Living in Houston, TX

Is Houston expensive to live in? Compared to other big cities, the average monthly cost of living in Houston, Texas, is quite reasonable. According to RentCafe® which sources its data from the Council for Community and Economic Research (C2ER), the cost to live in Houston, Texas, is 6% lower than the national average and just 2% greater than the state average as of March 2024. 

As of April 2024, Numbeo® finds that, excluding rent, the average monthly Houston living cost for a single person is around $1,130, while a household of four is approximately $4,006 (neither figure includes rent).

Houston residents also enjoy lower housing prices. RentCafe notes that housing costs are an impressive 17% less than the U.S. average as of March 2024, though these expenses can vary depending on location. If you’re browsing Zillow® and are drawn to an upscale neighborhood like Piney Point, expect a median home price of $4.5M as of February 2024. However, the median home price is just under $387K in the more budget-friendly downtown Houston area. 

Comparing Average Home Prices and Rent Costs in Houston

In Houston, housing options are as diverse as the city’s population. There's a home for every taste and budget, from young professionals to growing households to retired couples. Houses in Houston range from single-family homes to townhouses and apartments spread across dozens of neighborhoods. 

Now, let's look at the average living cost in Houston for housing. As of March 2024, RentCafe reported a median home price of around $443K for single-family homes in Houston, which varies depending on where you set your sights. While upscale neighborhoods like River Oaks have attractive high-end properties, you'll likely find more affordable options in areas like Spring or Sugar Land. Houston also has several new home communities with houses under $300K. 

If you’re holding off on homeownership for the time being, renting is still a fantastic option. It offers flexibility without the commitment of a mortgage. According to RentCafe’s March 2024 data, the average monthly rent in Houston is around $1,342.

 

Other Living Expenses in Houston, TX

Having a sense of the standard of living in Houston, Texas, is key to your financial game plan. So, let's delve deeper into the cost of daily essentials in Houston.

Grocery Shopping and Dining Out in Houston

For groceries, Houston offers several options to stock your fridge, from high-end stores to budget-friendly supermarkets. Per RentCafe’s cost of living calculator, Houston, TX, grocery staples are on par with the national average as of March 2024. Some examples of average prices, according to RentCafe, include a gallon of milk at about $4.56, a dozen eggs at roughly $3.81, and a pound of potatoes at around $3.98.

With Houston's food scene, you've got lots of options for dining out, whether you're a fan of trendy restaurants, food trucks, or local favorites. Each restaurant ranges in price, but you can expect a date night for two at a mid-range restaurant to average around $80, according to Numbeo in April 2024.

Transportation Options and Fuel Costs in Houston

While Houston is primarily a car-centric city, gas is fairly reasonable here. AAA® reports that a gallon of regular unleaded gas averages $3.19 as of April 2024.

Public transportation in Houston is handled by the METRO system, which charges $3 for a day pass. Residents can also take advantage of the Park & Ride commuter buses, and those fees range from $2.00 to $8.00 depending on your location.  

Healthcare and Insurance Costs in Houston

The Houston price of living for health care is 6% lower than the national average, per RentCafe in March 2024. While the actual cost of medical services depends on the situation, RentCafe offers these average costs for routine check-ups:

• Doctor’s visit: $106.41

• Optometrist: $129.92

• Dental appointment: $105.82

Health insurance costs vary widely depending on the plan and how many people are covered. To give you a general idea of premiums in the area, MoneyGeek® finds that Houston’s best and least expensive health insurance plans run from $326 to $448 monthly for a 40-year-old individual in 2024. 

Utilities, Internet, and Phone Expenses in Houston

Naturally, the price of living in Houston, Texas, includes keeping the lights on, speedy access to the internet, and a phone plan connecting you and your loved ones. RentCafe's March 2024 data states that the average monthly energy bill hovers around $152.98, and monthly phone bills run around $207.96. For internet services, Forbes® finds the top providers in Houston charge from $30–$60 monthly in 2024. 

Tax Rates in the Houston Area

First, let’s take a moment to appreciate that Texas has no state income tax, a big benefit for residents. That said, there are local and state sales taxes to budget for depending on where you decide to plant roots.

According to NerdWallet®, in 2024, the state sales tax adds 6.25% to the price of living in Houston, TX, and local sales taxes can’t be higher than 2%. So, 8.25% is the highest combined sales tax that can be collected. 

Recreation Costs in Houston, Texas

Houston is a playground for all things fun without a huge price tag. From beautiful parks to local hot spots, here’s a sample of what you can do and see without draining your bank account: 

• State Park Pass: One pass is $70 per person, and an additional pass for a second household member costs $25.

• Houston City Pass: A $76 pass gives you free entry to Space Center Houston, plus a choice of four more attractions, such as the Museum of Fine Arts and the Houston Zoo. 

• Space Center Houston: At $34.95 for adults and $29.95 for kids ages four and older, you can enjoy an immersive space exploration experience to discover the wonders of space and NASA's groundbreaking missions.

• Houston Zoo: The Houston Zoo is where you can encounter an array of animals for roughly $30 per person, depending on which day you go. 

• Minute Maid Park: Individual tickets to catch the Houston Astros™ in action on the baseball diamond vary by game and range from $12–$37 per person.

Average Salary in Houston

What salary do you need to live in Houston? To comfortably afford the cost of living, Houston, Texas, requires a minimum average income of $36,795 annually for a single adult and $91,356 annually for a household of two adults and two children, according to the Living Wage Calculator from MIT as of February 2024. Per RentCafe's Houston cost of living calculator, the median salary in the city as of March 2024 is $56K. 

Potential Tax Benefits for Homeowners in Houston

If you’re considering buying a home in Houston, you’ll find some fantastic tax perks available to homeowners: 

• Homestead exemption: This exemption reduces the taxable value of your primary residence and can lead to big savings on your property tax bill, according to MortgageMark (August 2023).

• Mortgage interest deduction: Many homeowners can benefit from deducting their mortgage interest payments from their taxable income, according to Forbes in June 2023. The specific amount you can deduct depends on the size of your loan.

• Property tax deduction: According to NerdWallet, in January 2020, whether you pay property taxes through an escrow account or directly to your municipality, these expenses can be deductible, offering even more potential tax savings. 

• Private mortgage insurance (PMI) deduction: If your loan is less than 20% of your home's value and you have PMI, you may be eligible to deduct PMI payments based on your adjusted gross income (AGI), per Forbes as of June 2023.

• Home equity debt interest deduction: Homeowners using a home equity loan for "buying, building, or substantially improving the taxpayer's home that secures the loan" may be able to deduct the interest payments, according to NerdWallet in January 2020.
  
  

• Home office expense deductions: In June 2023, Forbes reported if you use part of your home exclusively for work, you may qualify for deductions related to home-office expenses.

 

Houston Home Prices by Neighborhood and Suburb

To give you a sense of home prices in various Houston neighborhoods and suburbs, here’s a glimpse at several popular areas and what to expect in terms of new home prices in Houston, TX:

• Conroe: North of Houston, Conroe is known for its arts scene and unique annual events like the Conroe Cajun Catfish Festival. Outdoor enthusiasts can enjoy fishing, boating, and more on the scenic Lake Conroe. New homes in Conroe, TX, start in the mid $200Ks.

• Magnolia: Northwest of Houston, Magnolia charms residents with its small-town atmosphere, picturesque landscapes, and equestrian-friendly communities. New homes in Magnolia, TX, start in the mid $200Ks. 

• Montgomery: With a historic downtown and proximity to Lake Conroe, Montgomery offers residents life with lakefront amenities and water activities. New homes in Montgomery, TX, start in the upper $200Ks.

• Alvin: Steeped in history and agricultural heritage and situated south of Houston, Alvin is known for having a welcoming community atmosphere. New home communities in Alvin, TX, have houses starting in the mid $200Ks. 

• Cove: If you love a more laid-back ambiance, Cove offers residents a relaxed living experience and convenient access to coastal activities. You can find new homes in Cove, TX, starting in the upper $200Ks. 

• Crosby: Known for its tight-knit community and abundant outdoor activities, Crosby offers a friendly and active residential environment. Located northeast of Houston, check out new homes in Crosby, TX, starting in the mid $200Ks. 

• Hockley: Located northwest of Houston, Hockley is characterized by its rural charm and open landscapes, offering residents a peaceful, country-style living experience. The area is known for its equestrian-friendly communities and a slower pace of life. Nearby new home communities in Hockley, TX, offer houses starting in the low $200Ks.

• Porter: Northeast of Houston, Porter features a mix of residential and commercial developments. Explore new homes near Porter, TX, starting in the mid $200Ks. 

• Willis: Located north of Houston, Willis offers a small-town atmosphere and proximity to Lake Conroe, attracting those seeking a serene and close-to-nature lifestyle. Check out new homes in Willis, TX, starting in the low $200Ks. 

Conclusion

So, is Houston an expensive place to live? Given this overview of the city’s living cost, Houston, Texas, is an affordable choice, especially if you’re looking for big-city conveniences and abundant housing options that suit your budget. The overall cost of living in Houston, TX, is much less than the national average, as are home prices, and you have access to all the attractions and activities this dynamic city offers.

Explore new homes in Houston, TX, today, or browse more Centex® blogs. 

Written By: Jordan Thomson, Freelance Writer

Last Updated: 1/24/25