Discover the Cost of Living in Houston, TX: A Guide to Houston Living Expenses

Downtown Houston skyline overlooks a park, reflecting the cost of living in Houston, TX
Downtown Houston skyline overlooks a park, reflecting the cost of living in Houston, TX

If you’re considering a move here, you may be curious about the cost of living in Houston, TX. For an affordable, modern, and vibrant hometown, Houston has lots to offer everyone, from diverse communities to a thriving downtown city center. To assist you in making an informed decision, we offer this guide on living expenses in Houston. From housing to groceries, transportation to recreation, we explore Houston living costs to help give you a better idea of what to expect in your new hometown. 


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

  • Tax Benefits for Homeowners in Houston

  • Houston New Construction Home Prices by Neighborhood

  • Conclusion


Cost of Living in Houston, TX

Compared to other big cities, living in Houston, Texas, is a budget-friendly paradise. Houston living expenses can vary across neighborhoods, but generally, the average cost of living in Houston is only 2% higher than the state average and a remarkable 6% lower than the national average, per RentCafe® as of September 2024.

As of December 2024, Numbeo® reveals that the average monthly living cost in Houston for a household of four is around $3,941, while a single person can expect to spend $1,107 (excluding rent).

For housing, you can embrace your preferred lifestyle while enjoying a significantly lower cost of living in Houston. RentCafe’s September 2024 data finds that housing costs in Houston are an impressive 17% less than the U.S. average.


Comparing Average Home Prices and Rent Costs in Houston

From cozy townhouses to spacious single-family homes, Houston's real estate market offers a diverse range of options. The city welcomes everyone from retirees to those just beginning to climb the corporate ladder, so there's a perfect place for you in this vibrant city.

Prices vary across neighborhoods, depending on location and features. In areas like Piney Point, the median home is valued at about $2.7M, according to Zillow® in December 2024. On the other hand, Downtown Houston offers more affordable options, with the median home value averaging $368K. According to Realtor.com®, the average listing price for a single-family home in Houston is around $330K as of December 2024. 

Renting is another great option in Houston. Per the September 2024 RentCafe data, the average monthly rent is $1,355. So, whether you buy your dream home or rent, you'll find plenty of choices to fit your budget and lifestyle. 
A couple with a calculator and documents, an example of estimating Houston living expenses
A couple with a calculator and documents, an example of estimating Houston living expenses

Other Living Expenses in Houston, TX

Understanding the broader price of living in Houston, Texas, is also essential. Let's dive into those day-to-day expenses around the Houston price of living. 


Grocery Shopping and Dining Out in Houston

For groceries, Houston has high-end stores and budget-friendly supermarkets, so you can find what you need when it’s time to stock the pantry. RentCafe finds grocery prices are on par with the national average and offers these average food costs based on September 2024 data: 

  • $4.70 for a gallon of milk 

  • $3.97 for a dozen eggs

  • $4.85 for a pound of potatoes

Looking to eat out in Houston? Whether you fancy upscale dining, food trucks, or local gems, this city has it all. A casual, inexpensive restaurant meal is typically around $19. For a romantic dinner for two at a mid-range restaurant, you can expect to spend around $80 on average per Numbeo (December 2024).


Transportation Options and Fuel Costs in Houston

In Houston, cars rule the roads but usually won't drain your wallet at the pump. According to RentCafe, as of September 2024, transportation costs tend to be 9% lower than the national average, with gas prices around $2.92 per gallon. Houston also offers public transportation through the city’s METRO buses. Fares range from $1.25–$8, depending on the route, with day passes running $3. 


Healthcare and Insurance Costs in Houston

In Houston, Texas, living expenses for healthcare are 5% lower than the national average, per RentCafe as of September 2024. Plus, the city offers access to quality medical care, which is one of the benefits of settling down here. According to RentCafe’s data, here are some examples of average medical costs so you can get an idea of what to expect:


  • A doctor’s visit can cost about $95.64. 

  • An optometrist exam is around $126.69.

  • A dental appointment averages $122.22. 


For health insurance, MoneyGeek® reports that monthly premiums in Houston can range from $326–$415, depending on the plan and provider, as of September 2024. Since healthcare costs can add up, it's essential to budget wisely, given the actual cost of medical services can vary based on your needs and insurance coverage.


Utilities, Internet, and Phone Expenses in Houston

According to RentCafe, the average monthly cost of living in Houston for an energy bill is typically about $185.93 as of September 2024. Numbeo finds internet bills average $67 monthly, and phone services come in at about $57 in December 2024.


Tax Rates in the Houston Area

Texas has no state income tax, but your local property and sales taxes might vary depending on where you live. In 2024, the average property tax rate for Harris County is 2.13%, per SmartAsset®. Avalara® reports that the 2024 average sales tax in Houston is 8.25%, comprised of the state rate (6.25%) and different city and local rates.


Crowd watches an Astros baseball game at Minute Maid Park, reflecting Houston living costs
Crowd watches an Astros baseball game at Minute Maid Park, reflecting Houston living costs

Recreation Costs in Houston, Texas

From parks to cultural sites, sports, and entertainment, there is no shortage of fun things to do in Houston. The best part? Many recreational activities are budget-friendly. Check out some typical costs below:

  • State Park Pass: Immerse yourself in nature with a pass that runs $70 per person. A second pass costs $25 for another household member.


  • Houston CityPASS®: 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. 


  • NASA Johnson Space Center: One of the most popular attractions in Houston, enjoy an immersive and educational space exploration experience. The cost is $29.95 for adults, $27.95 for seniors, and $24.95 for children ages 4–11.


  • Houston Zoo: A captivating and conservation-focused destination, the Houston Zoo is where you can encounter a diverse array of animals from around the world for just under $30 per person.


  • Minute Maid Park: Catch a ball game for around $63 per person at the home of the Houston Astros. However, prices can vary depending on the day and seating location.


Average Salary in Houston

What salary do you need to live in Houston? ZipRecruiter® finds the average salary in Houston to be $71,662 annually as of November 2024, but high-demand jobs could offer even more. The city offers proximity to major employers in the energy, healthcare, and technology sectors. Plus, with no state income tax, you get to keep more of your money and build financial stability. 


Tax Benefits for Homeowners in Houston

In Houston, homeowners can enjoy property tax exemptions, including:


  • Homestead exemption: For qualifying homeowners, this exemption reduces the taxable value of your primary residence and can lead to savings on your property tax bill. You can learn more at the Harris County Tax Office.

  • Property tax exemptions: There are several property tax exemptions available to qualifying homeowners, including those for solar and wind-powered devices, disabled veterans, and charitable organizations. Visit the Texas Comptroller’s website for more details.

 

  • Mortgage interest deduction: Homeowners may be able to benefit from deducting their mortgage interest payments on their taxes, according to CNBC®.com (November 2024).


  • Property tax deduction: CNBC.com also finds property taxes can be deductible expenses.


  • Home equity debt interest deduction: For homeowners using a home equity loan to make improvements to their house, the interest payments on that loan may be deductible, per CNBC.com in November 2024.

  • Home office expense deductions: Per CNBC.com, homeowners may qualify for deductions related to home-office expenses if part of the home is used exclusively for work (November 2024).

Exterior of a new construction home, part of the cost to live in Houston, Texas
Exterior of a new construction home, part of the cost to live in Houston, Texas

Houston New Construction Home Prices by Neighborhood

With a diverse real estate market, you’re sure to find your dream neighborhood in Houston. Let’s take a peek at the cost of new construction homes in some of Houston’s top neighborhoods:

  • Sugar Land: The perfect suburban oasis roughly 22 miles southwest of Houston, Sugar Land offers roomy homes, endless recreational options, and exciting community events. This neighborhood is a dream come true for many homeowners. New construction homes in Sugar Land range from the mid $400Ks to the upper $500Ks, according to NewHomeSource® as of December 2024. Be sure to check out our new homes in Del Webb® Sugar Land at Ryehill.

  • The Woodlands: A 28,000-acre forested paradise just north of downtown, The Woodlands offers modern living and abundant shopping and dining alongside 151 parks, perfect for hiking, biking, and other outdoor fun. NewHomeSource finds new construction homes in The Woodlands ranging from the mid $600Ks to low $900Ks as of December 2024.


  • Fulshear: This community-oriented suburb is ideal for adults who love the outdoors. Just under 40 miles from Houston, Fulshear offers numerous parks for activities in nature, access to products from local farmers, and a historic downtown area with lots of spots to shop and dine. As of December 2024, NewHomeSource shows new construction homes in Fulshear range from the upper $200Ks to $1.2M. New homes in our Del Webb Fulshear community start in the upper $200Ks.

  • Katy: Located 30 miles west of Houston, Katy offers cozy small-town appeal alongside big-city conveniences, featuring beautiful neighborhoods and new construction communities. According to NewHomeSource, new construction homes in Katy can range from the mid $200Ks up to $1M as of December 2024.

  • Willis: With proximity to Lake Conroe and Sam Houston National Forest, Willis is another great spot for outdoor adventurers and nature enthusiasts. Approximately 48 miles north of Houston, this neighborhood has a rich history and a close-knit community vibe. New construction homes in Willis range from the mid $100Ks to the high $800Ks, per NewHomeSource as of December 2024. Our new homes at Del Webb in Chambers Creek start in the low $300Ks.  


Conclusion

The cost to live in Houston means you can enjoy a budget-friendly Texas lifestyle. With living expenses 6% below the national average and housing costs 17% lower, Houston is an appealing destination. Explore distinct and diverse neighborhoods like Sugar Land, Katy, Willis, and Fulshear—and don't forget the bonus of no state income tax. Find your perfect home in this dynamic city today.


Explore active adult communities in Houston, TX, today or browse more Del Webb blogs



Written By: Jordan Thomson, Freelance Writer

Last Updated: 5/22/25