Houston vs Raleigh: cost of living compared
Raleigh is 2% more expensive than Houston overall. Houston (TX) has no state income tax; NC tops out around 4.5%.
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
Houston generally offers a more affordable cost of living compared to Raleigh. The most significant difference stems from housing expenses, which are noticeably lower in Houston for both buying and renting. While some everyday costs like utilities and transportation might be slightly higher in Houston, these are often offset by the substantial savings in housing. Overall, a household budget will likely stretch further in the Texas metro.
Housing
Housing costs present the largest divergence between these two metros. Both median home prices and typical rents for a one-bedroom apartment are considerably higher in Raleigh. Houston's housing market is notably more affordable, reflecting a greater supply of homes. Beyond the purchase price, property taxes can be a significant ownership cost in Texas, while North Carolina's property taxes are generally lower, though this is often balanced by the higher initial home values in Raleigh.
Taxes and everyday costs
Daily expenses show a mixed picture. Raleigh has a state income tax, which is absent in Texas, impacting take-home pay. Transportation costs are somewhat lower in Raleigh, and healthcare and utilities are also more affordable there. Food costs are roughly similar in both cities. However, Houston's lower housing expenses often make its overall everyday spending more manageable despite these other categories.
Lifestyle trade-offs
Houston offers a vast, sprawling urban experience with a humid subtropical climate, often experiencing hot summers and mild winters, along with hurricane season considerations. Its public transit options are more limited, leading to a longer average commute time. Raleigh provides a more moderate climate with four distinct seasons and a somewhat less dense, more suburban feel. Commutes are typically shorter there, reflecting a different urban design and transportation network.
Bottom line
For those prioritizing housing affordability, Houston presents a clear advantage, with significantly lower costs for both buying and renting. While Raleigh offers some savings in areas like transportation, healthcare, and utilities, and has a state income tax, these are often outweighed by the substantial difference in housing expenses. A move to Houston generally means a more favorable impact on a household's overall budget, particularly concerning shelter.
| Measure | Houston, TX | Raleigh, NC |
|---|---|---|
| Overall cost of living (US avg = 100) | 98 | 100 |
| Housing index | 84 | 106 |
| Transportation index | 109 | 97 |
| Food index | 95 | 95 |
| Healthcare index | 98 | 95 |
| Utilities index | 108 | 98 |
| Misc index | 92 | 90 |
| Median home price | $298,000 | $388,000 |
| Median 1-bedroom rent | $1,250/mo | $1,500/mo |
| Average commute | 31 min | 27 min |
Compare any two metros with the free cost of living tool, or see the true monthly cost of a specific Raleigh home with the True Cost Calculator.