Houston, Texas, has a lot to offer, from its diverse culture to its rapidly growing job market.
One of the biggest draws for many people moving here is its relatively affordable cost of living, especially when compared to other major U.S. cities like New York, Los Angeles, or even Austin.
But what does it really cost to live comfortably in Houston? Let’s break down the key expenses you can expect to face if you’re looking to call this sprawling, vibrant city home.
Key Highlights
- Housing and utilities are the largest expenses in Houston, with rent averaging $1,311 and utilities being higher in the summer.
- Transportation is essential due to Houston’s sprawl, with most residents needing a car and fuel costs averaging $100-$200 per month.
- A comfortable living requires an annual income of around 75,088 for a single person.
Housing Costs (Renting & Owning)
Housing is often the largest monthly expense, and in Houston, it’s no different. What sets Houston apart from other large cities is the range of options available for various budgets.
Renting
The median rent for an apartment in Houston is around $1,311 per month. Of course, that number fluctuates based on your neighborhood. If you’re eyeing places in Downtown Houston or hip spots like The Heights, expect to pay more.
On the flip side, neighborhoods like Alief or Spring Branch offer more affordable options. A one-bedroom apartment in a trendy, central area might set you back closer to $1,800, while something further out could be under $1,000. So, where you live has a massive impact on your monthly housing budget.
According to Numbeo, rent per month figures go like this:
- Apartment with one bedroom in Houston center – 1.566.14 $
- Apartment with one bedroom outside of Houston center – 1.193.38 $
- Apartment with three bedrooms in Houston center – 3.184.87 $
- Apartment with three bedrooms outside of Houston center – 2.189.97 $
Buying a Home
Houston’s median home price hovers around $343,000, which is much lower than in cities like San Francisco or Boston.
However, buying a home isn’t just about the mortgage—property taxes in Texas are notoriously high, so that’ll add a significant chunk to your monthly costs. When considering homeownership, budgeting for taxes, insurance, and maintenance is crucial.
Statistics presented by Numbeo also claim that buying an apartment in Houston center costs 2.888.41 $ per square meter, while an apartment outside of it costs 2.016.02 $ per square meter.
Utilities
When living in Houston, be prepared for utility costs, especially during the sizzling summer months. The heat can be relentless, and you’ll likely run your air conditioning 24/7 for several months of the year.
- Electricity: On average, Houston residents spend about $130 a month on electricity. However, during the summer, that number can shoot up as you crank up the AC to keep cool.
- Water and Gas: Expect to shell out about $50–$75 for water and another $30–$50 for gas, though this varies depending on your usage and home size.
- Internet and Cable: You’ll pay around $60–$100 per month for high-speed internet, depending on your service provider and package.
Transportation & the Necessity of a Car
Unlike more densely packed cities with comprehensive public transportation, Houston is sprawling, and getting around without a car can be a challenge.
Gasoline
If you own a car, gas is another regular expense to factor in. With fuel prices averaging around $3.50 per gallon in 2024, commuting daily could cost you anywhere from $100 to $200 per month, depending on your car’s fuel efficiency and the distance you travel.
Car Insurance
Be prepared for high insurance rates in Houston. The average car insurance premium is about $150 a month due to heavy traffic and the city’s vulnerability to natural disasters like floods.
Public Transportation
On the other hand, if you prefer to leave the driving to someone else, Houston’s METRO system is affordable, with a monthly pass costing around $50.
However, keep in mind that Houston’s public transit options aren’t as extensive as in other large cities, so owning a car might still be necessary for many.
Food and Groceries
Food costs in Houston are pretty reasonable, and there’s plenty of variety to suit all budgets and tastes.
Groceries
Sources from RealFX suggest that a single person spends around $450 per month on food, including groceries and dining out. The average grocery bill for a single adult in Houston is around $270 per month, while for a family of four, it is approximately $780.
Houston has no shortage of grocery stores, from high-end spots like Whole Foods to budget-friendly places like H-E-B or Fiesta Mart. It’s all about where you shop and what you eat.
Dining Out
Houston’s food scene is one of the best parts of living here. From tacos to barbecue, the options are endless.
A meal at an affordable restaurant will cost around $15, while a nice dinner for two at a mid-range place can set you back $60 to $100. If you’re someone who enjoys dining out regularly, you might want to budget for that accordingly. Also, Houston offers some great bars for a night out.
Healthcare
Healthcare is another significant part of the cost of living. Houston is known for having world-class medical facilities, including the Texas Medical Center, but that doesn’t always mean healthcare is cheap.
- Health Insurance: Monthly premiums for individual health insurance range from $200 to $500. For families, the cost can rise to $600 to $2.000 a month, depending on the type of coverage you choose.
- Out-of-Pocket Costs: Doctor visits without insurance will run you between $100 and $200. Specialist visits and emergency care are pricier, making insurance essential if you don’t want to be hit with a hefty bill after a medical issue.
Entertainment and Leisure
Houston offers plenty of ways to have fun, whether you’re into sports, theater, or outdoor activities. But entertainment costs can vary depending on your lifestyle.
- Gym Memberships: A basic gym membership will set you back around $30–$50 per month. Want a more upscale experience? Expect to pay more.
- Movies and Events: Movie tickets typically cost about $12, and if you enjoy live concerts or sports, tickets to events can range from $40 to $150. Going to a Houston Astros game, for instance, could cost between $25 and $100, depending on where you want to sit.
- Outdoor Activities: Houston’s parks and outdoor spaces are a big draw, and they’re mostly free! You can enjoy hiking, biking, or just hanging out at one of the many public parks at no cost.
Education
For families, education is a major factor when considering the cost of living. Luckily, Houston has plenty of options, from public schools to prestigious private institutions.
- Public Schools: Public education in Houston is free, but some families choose to send their kids to private or charter schools, which come with tuition fees.
- Private Schools: Private school tuition varies widely, from $10,000 to more than $30,000 per year.
- Higher Education: Houston is home to several top-tier universities like the University of Houston and Rice University. Tuition for public schools averages around $10,000 per year for in-state students, while private universities like Rice have higher tuition rates.
How Much Do You Really Need?
SmartAsset’s 2024 report states that an individual needs to make around $75,088 annually to live comfortably in Houston, which amounts to about $6,257 per month. This includes housing, transportation, food, and other essentials.
Houston’s relatively low housing costs, compared to other major cities, make it an appealing option for many people, but that doesn’t mean life here is cheap. Budgeting carefully for housing, transportation, healthcare, and entertainment is key to living comfortably.
Final Thoughts
Living in Houston can be a fantastic experience. The city offers an excellent balance of affordability and quality of life. It’s diverse, lively, and full of opportunities.
However, it’s important to have a realistic view of your finances. If you’re planning to move or settle here, keeping an eye on your spending and knowing what to expect in terms of costs will help you thrive in the Bayou City.
