Houston vs New Orleans: cost of living compared
New Orleans is 6% cheaper than Houston overall. Houston (TX) has no state income tax; LA tops out around 4.25%.
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
New Orleans generally offers a more affordable overall cost of living compared to Houston. This difference is primarily driven by housing expenses, which are noticeably lower in New Orleans. While some categories like utilities are roughly similar, the significant gap in housing costs makes New Orleans the more budget-friendly option for many, even with other expenses showing smaller variations between the two metros.
Housing
Housing in New Orleans is considerably less expensive than in Houston, whether you are looking to buy or rent. The median home price shows a substantial difference, and monthly rent for a one-bedroom unit is also lower in New Orleans. Both cities feature a mix of older and newer housing stock. Property taxes and insurance costs can vary, but the initial purchase price and rental rates present a clear advantage for New Orleans.
Taxes and everyday costs
Daily expenses vary between the two metros. Louisiana has a state income tax, unlike Texas, which impacts take-home pay. Transportation costs are lower in New Orleans, and commute times are shorter on average. Food, healthcare, and utilities are quite similar between the two cities, with only minor differences. Overall, the lack of state income tax in Houston could offset some of New Orleans' housing advantage for higher earners.
Lifestyle trade-offs
Houston offers a sprawling urban environment with extensive highway networks, typical of a large Texas city, and a warm, humid climate. New Orleans, by contrast, is more compact with a distinct historic character, known for its walkability in many areas and a humid subtropical climate. Both cities are susceptible to tropical weather events, but their distinct paces and urban layouts offer different daily experiences for residents.
Bottom line
For those prioritizing lower housing costs, New Orleans presents a compelling advantage, with significantly more affordable home prices and rents. However, the absence of a state income tax in Houston could make it more attractive for some budgets, especially those with higher incomes. When considering a move, weigh the substantial housing savings in New Orleans against the income tax difference and the distinct lifestyle each vibrant city offers.
| Measure | Houston, TX | New Orleans, LA |
|---|---|---|
| Overall cost of living (US avg = 100) | 98 | 92 |
| Housing index | 84 | 74 |
| Transportation index | 109 | 93 |
| Food index | 95 | 95 |
| Healthcare index | 98 | 92 |
| Utilities index | 108 | 108 |
| Misc index | 92 | 88 |
| Median home price | $298,000 | $248,000 |
| Median 1-bedroom rent | $1,250/mo | $1,200/mo |
| Average commute | 31 min | 26 min |
Compare any two metros with the free cost of living tool, or see the true monthly cost of a specific New Orleans home with the True Cost Calculator.