Austin vs Houston: cost of living compared
Houston is 17% cheaper than Austin overall. Neither TX nor TX has a state income tax.
Indexes use a US average of 100: below 100 is cheaper than the national average. Housing and transportation are derived from median home prices, rents and commute times; figures come from BLS, Census ACS, Numbeo and the MIT Living Wage Calculator.
The big picture
Comparing Austin and Houston reveals a notable difference in overall cost of living. Austin is generally more expensive than the national average, while Houston typically falls below it. This disparity is predominantly driven by housing costs, which are significantly higher in Austin. Other categories like utilities, food, and miscellaneous expenses also contribute to Austin's elevated cost profile, making Houston a more budget-friendly option across the board.
Housing
Housing in Austin is considerably more expensive than in Houston, whether you are looking to buy or rent. Median home prices and typical one-bedroom rents show a substantial gap, with Houston offering much more accessible options. While property taxes are a factor in both Texas metros, the initial investment for housing is a major differentiator, making homeownership and renting notably more affordable in Houston.
Taxes and everyday costs
Both Austin and Houston benefit from the absence of a state income tax, which can be a significant saving. However, daily expenses for food, healthcare, and utilities are generally higher in Austin. Transportation costs are roughly similar in both cities, with average commute times also comparable. Overall, everyday spending on essential goods and services tends to be more economical in Houston.
Lifestyle trade-offs
Beyond costs, a move between these cities involves distinct lifestyle shifts. Austin is known for its hill country topography and a generally drier climate, often perceived as having a more compact urban core. Houston, in contrast, is a sprawling, flatter metropolis with a humid, subtropical climate. Both cities are car-dependent, though Houston's extensive freeway system reflects its vast size and dispersed activity centers, while Austin's traffic can be challenging within its more concentrated areas.
Bottom line
For those weighing a move, the financial impact is clear: Houston offers a substantially lower cost of living compared to Austin, primarily due to much more affordable housing. While daily expenses like food and utilities are also more economical in Houston, transportation costs are quite similar. A household budget will stretch considerably further in Houston, making it an attractive option for those prioritizing financial savings over Austin's distinct atmosphere and higher price tags.
| Measure | Austin, TX | Houston, TX |
|---|---|---|
| Overall cost of living (US avg = 100) | 118 | 98 |
| Housing index | 132 | 84 |
| Transportation index | 109 | 109 |
| Food index | 102 | 95 |
| Healthcare index | 102 | 98 |
| Utilities index | 112 | 108 |
| Misc index | 102 | 92 |
| Median home price | $498,000 | $298,000 |
| Median 1-bedroom rent | $1,750/mo | $1,250/mo |
| Average commute | 30 min | 31 min |
Compare any two metros with the free cost of living tool, or see the true monthly cost of a specific Houston home with the True Cost Calculator.