Chicago vs Houston: cost of living compared
Houston is 17% cheaper than Chicago overall. Houston (TX) has no state income tax; IL tops out around 4.95%.
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
Overall, the cost of living in Houston is noticeably more affordable than in Chicago. This difference is largely driven by housing, which is significantly cheaper in Houston, along with lower costs for food and healthcare. While some expenses like utilities are a bit higher in Houston, the cumulative effect of other categories makes it a more budget-friendly option for many households.
Housing
Both buying and renting are considerably less expensive in Houston. Median home prices are lower, and a one-bedroom rental commands a much higher price in Chicago. Chicago's housing stock often includes multi-story buildings and older, established neighborhoods, while Houston offers a wider array of newer construction and more sprawling developments. Property taxes and insurance costs can also vary significantly between the two regions.
Taxes and everyday costs
A major difference in daily expenses is the absence of a state income tax in Texas, which means more take-home pay for Houston residents compared to Chicago. Beyond that, transportation, food, and healthcare costs are all higher in Chicago. Utilities, however, are somewhat more expensive in Houston, likely due to climate differences and greater reliance on air conditioning. Miscellaneous goods and services also cost less in Houston.
Lifestyle trade-offs
Chicago experiences distinct four seasons with cold, snowy winters, while Houston has a humid subtropical climate with hot summers and mild winters. Getting around Chicago often involves a robust public transit system, whereas Houston is more car-dependent, though both metros experience significant traffic. Chicago is known for its dense urban core and historic architecture, while Houston offers a more expansive, modern feel. Houston is also susceptible to hurricane season.
Bottom line
Moving from Chicago to Houston generally means a more favorable financial outlook for household budgets, primarily due to much lower housing costs and the absence of state income tax. While some utility expenses might be higher in Houston, the overall savings on housing, food, and healthcare can be substantial. Conversely, moving from Houston to Chicago would typically entail a noticeable increase in most major living expenses.
| Measure | Chicago, IL | Houston, TX |
|---|---|---|
| Overall cost of living (US avg = 100) | 118 | 98 |
| Housing index | 97 | 84 |
| Transportation index | 121 | 109 |
| Food index | 105 | 95 |
| Healthcare index | 108 | 98 |
| Utilities index | 102 | 108 |
| Misc index | 108 | 92 |
| Median home price | $318,000 | $298,000 |
| Median 1-bedroom rent | $1,650/mo | $1,250/mo |
| Average commute | 34 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.