Dallas vs Houston: cost of living compared
Houston is 7% cheaper than Dallas 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
Overall, the cost of living in Houston is noticeably lower than in Dallas. This difference is primarily driven by housing costs, which are significantly more affordable in Houston. While some expenses are roughly similar or slightly higher in Houston, the substantial savings on housing make Houston the more budget-friendly option when considering the total cost of living.
Housing
Housing in Houston is considerably more affordable, whether you are looking to buy a home or rent an apartment. Median home prices show a clear gap, with Dallas being more expensive. Similarly, monthly rental costs for a one-bedroom unit are lower in Houston. Both metros feature a mix of housing types, from single-family homes to urban apartments, but the entry point for ownership and renting is more accessible in Houston.
Taxes and everyday costs
When it comes to daily expenses, both Dallas and Houston benefit from no state income tax. Food and healthcare costs are slightly lower in Houston, contributing to overall savings. However, transportation expenses are somewhat higher in Houston, while utilities are also a bit more costly there. Miscellaneous goods and services are more affordable in Houston, balancing out some of the other categories.
Lifestyle trade-offs
Beyond costs, a move between these cities means experiencing different environments. Dallas is generally perceived as having a slightly faster pace and a more compact urban core. Houston, known for its sprawling layout, has a slightly longer average commute. Both cities experience hot summers, but Houston's proximity to the coast often brings higher humidity and a greater risk of tropical weather events.
Bottom line
For those weighing a move between these Texas metros, Houston generally offers a more economical choice, largely due to its significantly lower housing costs. While some everyday expenses like transportation and utilities might be a bit higher in Houston, the substantial savings on housing and slightly lower food and healthcare costs mean a household budget will likely stretch further there compared to Dallas.
| Measure | Dallas, TX | Houston, TX |
|---|---|---|
| Overall cost of living (US avg = 100) | 105 | 98 |
| Housing index | 99 | 84 |
| Transportation index | 104 | 109 |
| Food index | 98 | 95 |
| Healthcare index | 102 | 98 |
| Utilities index | 105 | 108 |
| Misc index | 98 | 92 |
| Median home price | $358,000 | $298,000 |
| Median 1-bedroom rent | $1,450/mo | $1,250/mo |
| Average commute | 29 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.