Houston vs Memphis: cost of living compared
Memphis is 20% cheaper than Houston overall. Neither TX nor TN 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
Memphis offers a significantly lower overall cost of living compared to Houston. This difference is largely driven by housing expenses, which are considerably more affordable in Memphis. While some categories like utilities are closer, the cumulative effect of lower costs across most spending areas makes Memphis a more budget-friendly option for many. Both metros offer a wide range of amenities, but the financial footprint of daily life is distinct.
Housing
Housing costs present the most substantial difference between the two cities. Both buying a home and renting an apartment are noticeably more expensive in Houston, where median home prices are considerably higher and monthly rents for a one-bedroom are also steeper. Memphis provides a much more accessible housing market, with significantly lower median home prices and more affordable rental options, making homeownership a more immediate possibility for many.
Taxes and everyday costs
Daily expenses for food, healthcare, and miscellaneous goods and services are all more affordable in Memphis. Transportation costs are also lower in Memphis, and the average commute time is shorter. Both states do not impose a broad state income tax. However, utilities are somewhat higher in Houston, which can impact monthly budgeting. Overall, routine spending on essential goods and services will be less burdensome in Memphis.
Lifestyle trade-offs
Houston, a sprawling metropolis, offers a diverse urban experience with a generally warm, humid climate and a significant presence of the energy industry. Getting around often involves navigating extensive roadways, and the pace can feel quite active. Memphis, while still a major city, has a different character, known for its rich cultural history and a more moderate pace. Its climate is also warm and humid, but with a distinct seasonal variation.
Bottom line
For those prioritizing a lower cost of living, Memphis clearly presents a more economical choice, primarily due to its much more affordable housing market. While Houston offers a larger urban environment and a broader economic base, the financial savings in Memphis across nearly all spending categories, including housing, transportation, and daily necessities, would significantly stretch a household budget further. Both cities offer unique advantages, but the financial impact on residents varies considerably.
| Measure | Houston, TX | Memphis, TN |
|---|---|---|
| Overall cost of living (US avg = 100) | 98 | 78 |
| Housing index | 84 | 54 |
| Transportation index | 109 | 88 |
| Food index | 95 | 85 |
| Healthcare index | 98 | 88 |
| Utilities index | 108 | 92 |
| Misc index | 92 | 78 |
| Median home price | $298,000 | $178,000 |
| Median 1-bedroom rent | $1,250/mo | $900/mo |
| Average commute | 31 min | 25 min |
Compare any two metros with the free cost of living tool, or see the true monthly cost of a specific Memphis home with the True Cost Calculator.