Houston Cost of Living: How It Compares in 2026
Houston remains one of America's most affordable major cities. Here's how housing, groceries, and utilities stack up against other Texas metros and the national average.
Houston's cost of living is 6% below the national average, making it one of the most affordable large metros in the U.S. Here's the 2026 breakdown.
Housing — The Biggest Savings
The median home price in Houston is $295,000, compared to $415,000 in Austin and $375,000 in Dallas. Renters save too — the average 1-bedroom apartment in Houston runs $1,150/mo vs. $1,500 in Austin.
| City | Median Home Price | Avg. 1BR Rent | |------|------------------|---------------| | Houston | $295,000 | $1,150 | | Austin | $415,000 | $1,500 | | Dallas | $375,000 | $1,350 | | San Antonio | $280,000 | $1,050 | | National Avg. | $390,000 | $1,400 |
No State Income Tax
Texas has no state income tax, which means a $100,000 salary in Houston goes further than the same salary in California (13.3% top rate) or New York (10.9% top rate). This alone can save families $5,000–$12,000/year.
Groceries & Daily Expenses
Houston's grocery costs are 3% below national average. The city's diversity drives competition — from H-E-B and Kroger to international markets in Chinatown and Hillcroft. A typical monthly grocery bill for a family of four is about $850.
Utilities
Houston utilities average $160/mo for a standard apartment (electricity, water, trash, internet). Electricity costs spike in summer (June–September) when AC runs 24/7 — budget $200–$300/mo for a house during peak months.
Transportation
Gas prices in Houston average $2.85/gallon, below the national average of $3.20. Most Houstonians drive — public transit is limited outside the inner loop. Average car insurance runs $1,800/year.
The Bottom Line
A household earning $75,000/year in Houston has roughly the same purchasing power as one earning $95,000 in Austin or $105,000 in Los Angeles. Use our Cost of Living Calculator for a personalized comparison.