Denver vs Houston: cost of living compared
Houston is 23% cheaper than Denver overall. Houston (TX) has no state income tax; CO tops out around 4.4%.
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 Denver and Houston reveals a substantial difference in overall cost of living. Denver stands out as considerably more expensive than the national average, while Houston offers a cost of living that is noticeably below it. This significant gap is primarily driven by housing expenses, which are dramatically higher in the Colorado capital, setting the tone for a household budget in either city.
Housing
Housing costs present a stark contrast between the two metros. Both median home prices and typical one-bedroom rents are substantially higher in Denver, making homeownership and renting much more accessible in Houston. While Denver often features more traditional homes with mountain proximity, Houston offers a diverse housing stock, often with more land for the price. Property taxes and insurance costs can also vary significantly between the states.
Taxes and everyday costs
Daily expenses also show notable differences. Colorado has a state income tax, unlike Texas, which can impact take-home pay. While transportation costs are roughly similar, Houston offers more affordable food and healthcare. Utilities, however, are typically higher in Houston, likely due to climate differences. These factors mean that everyday spending on essentials will generally be lower in Houston.
Lifestyle trade-offs
Beyond costs, a move between these cities involves significant lifestyle changes. Denver offers a high-altitude, semi-arid climate with distinct seasons and easy access to mountain recreation. Its urban core is denser, and public transit options are present. Houston, in contrast, has a humid subtropical climate, flatter terrain, and a sprawling layout. While public transit exists, car dependence is common, and the city is known for its diverse culinary scene and cultural institutions.
Bottom line
For those weighing a move, the financial implications are clear: a household budget will stretch much further in Houston than in Denver. The most impactful difference is housing, but lower everyday costs for food, healthcare, and the absence of a state income tax in Texas further contribute to Houston's affordability. Conversely, Denver offers a different climate and proximity to mountain recreation, but at a significantly higher price point across the board.
| Measure | Denver, CO | Houston, TX |
|---|---|---|
| Overall cost of living (US avg = 100) | 128 | 98 |
| Housing index | 146 | 84 |
| Transportation index | 104 | 109 |
| Food index | 105 | 95 |
| Healthcare index | 108 | 98 |
| Utilities index | 98 | 108 |
| Misc index | 108 | 92 |
| Median home price | $548,000 | $298,000 |
| Median 1-bedroom rent | $1,950/mo | $1,250/mo |
| Average commute | 28 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.