- Download our Moving to Houston Guide (PDF)
If you’re an expat or new arrival from elsewhere in the US moving to Houston, you’ll be glad to know that your hard-earned dollars will have higher buying power here than in many other major metropolitan areas in the country. The cost of living in Houston is significantly cheaper than in other major US cities such as New York, San Francisco, Los Angeles, and Chicago.
In Mercer’s 2024 Cost of Living City Ranking, Houston is ranked 50th out of 226 cities worldwide. While the cost of living in Houston tends to be more affordable than in other large US cities, it will still likely vary according to your priorities and lifestyle choices.
Cost of accommodation in Houston
Although the cost of purchasing a house has risen significantly over the last few years, accommodation in Houston is plentiful. This has largely been driven by a strong job market, low mortgage rates, and a growing population. Renting tends to be a more affordable option in many areas and may be the better choice if you plan to be in Houston for a limited time.
Rental rates vary widely depending on the neighbourhood, with areas such as Downtown Houston and West University pricier. In contrast, more suburban areas like Katy offer more budget-friendly options.
Most rental accommodation in Houston comes unfurnished, while even unfurnished units usually include basic appliances such as a washing machine, dishwasher, and fridge. The initial cost of renting a property in Houston will typically include a security deposit equivalent to at least one month’s rent. You will also need to cover monthly utility bills over and above your rent. Utilities can include water, gas, electricity, and rubbish removal, depending on where in Houston you live.
Accommodation and Utilities in Houston
Areas and Suburbs in Houston
Cost of transport in Houston
If you’re relocating to Houston, one expense to budget for is the cost of owning and maintaining a car. While Houston has a public transport network operated by METRO, it’s somewhat limited, so many residents find owning a car essential for daily life.
If you’d like to avoid the costs associated with car ownership, you could consider using a mixture of the light rail and bus systems and taxis. METRO has been expanding its service, and new buses are being added, which may help its reliability. Taxis are plentiful in downtown Houston, with a flat rate in the downtown area, although relying on taxis for longer distances can become costly.
Aside from maintenance and fuel, owning a car in Houston comes with additional expenses. Parking fees and insurance costs must be accounted for, so be sure to factor this in if you’re considering car ownership.
Cost of groceries in Houston
The cost of groceries in Houston is around the national median. It’s worth noting that food prices have risen quite drastically over the last few years. Despite these increases, you can still find affordable and high-quality fresh produce throughout the city, especially if you buy in-season fruits and vegetables.
Shopping at supermarkets like Kroger’s, Trader Joe’s, Aldi, and H-E-B will likely lead to significant cost savings. These chains often offer a range of discounts and are generally cheaper than speciality shops.
For health-conscious buyers, Sprouts Farmers Market offers reasonably priced organic and health-focused products. Many farmers’ markets across Houston, such as the Houston Farmers Market and Urban Harvest Farmers Market, sell fresh, local produce.
Cost of entertainment and eating out in Houston
Entertainment and nightlife in Houston can be enjoyed on a budget, with plenty of free or low-cost activities available, such as visiting one of the city’s many parks or exploring its museums. For those who enjoy shopping, Houston boasts several outlet malls where you can find designer clothing at discounted rates.
With a wealth of award-winning restaurants and a thriving culinary scene, Houston is one of the best foodie cities in the country. Eating out is relatively affordable, and restaurant portions are usually generous, making dining out excellent value for money. Neighbourhoods like Midtown, The Heights, and Downtown are known for their high density of dining options, catering to all tastes and budgets.
The cost of entertainment venues, including concerts, sports events, and theatres, has risen, but you can still find promotions and discounts that help mitigate these rising costs. Many restaurants in Houston also offer lunch specials and happy hour deals, which are great for enjoying the city’s thriving culinary scene without spending too much. Using apps like Groupon or restaurant loyalty programmes can also help you save money when dining out.
Cost of education in Houston
There are several good public schools in Houston that can be attended free of charge, but admission is based on catchment zones. Catchment zones, also known as attendance boundaries, are determined by factors like population density, school capacity, and geographic considerations.
The Houston Independent School District (HISD) uses these criteria to assign schools based on home addresses, so it’s essential to consider which areas and suburbs you choose to live in. Public schools in more affluent areas generally offer better teaching standards and facilities, but this often comes with a higher accommodation cost.
Private and international schools in Houston offer diverse curricula for families seeking alternative education options. Options include the International Baccalaureate (IB), Advanced Placement (AP), and even the British or French curricula. Private schooling comes with high fees, and additional costs for uniforms, extracurricular activities, and textbooks should also be considered. The IB programme, for example, can be quite costly.
Education and Schools in Houston
Cost of healthcare in Houston
The healthcare in Houston is among the best in the US, and the city has become a well-known destination for medical tourism. The US lacks universal healthcare, so the cost of accessing healthcare services in Houston is steep. You need to secure employer-sponsored or private health insurance to affordably access healthcare in the city.
Healthcare and Health Insurance in Houston
Understanding Health Insurance in the USA
Cost of living in Houston chart
Prices may vary depending on the product and service provider. The list below shows average prices for November 2024.
Accommodation (monthly rent) | |
Three-bedroom apartment in the city centre | USD 3,300 |
Three-bedroom apartment outside the city centre | USD 2,300 |
One-bedroom apartment in the city centre | USD 1,700 |
One-bedroom apartment outside the city centre | USD 1,300 |
Food and drink | |
Dozen eggs | USD 3.65 |
Milk (1 litre) | USD 0.95 |
Rice (1kg) | USD 3.50 |
Loaf of white bread | USD 3.05 |
Chicken breasts (1kg) | USD 11.80 |
Pack of cigarettes (Marlboro) | USD 10.20 |
Eating out | |
Three-course meal for two at a mid-range restaurant | USD 80 |
Big Mac Meal | USD 9.30 |
Coca-Cola (330ml) | USD 2.60 |
Cappuccino | USD 5.45 |
Bottle of beer (local) | USD 1.95 |
Utilities/household | |
Monthly mobile phone plan (with calls and data) | USD 65 |
Internet (uncapped ADSL or cable – average per month) | USD 70 |
Basic utilities (average per month for a standard household) | USD 210 |
Transportation | |
Taxi rate/km | USD 1.95 |
City-centre public transport fare | USD 1.30 |
Gasoline/petrol (per litre) | USD 0.80 |
What do expats think of living costs in Houston?
"Gas was cheap – both for your car and for your heating. Designer clothes, bags, shoes, kid’s clothes and convenience foods – all cheap. Electricity (AC all summer!) and fresh fruit and vegetables were more expensive."
Read what else Las, an Irish expat, has to say about life in Houston in her interview.
"It is less expensive and you can have larger beautiful homes with pools for something that would be half the sq ft in Canada."
Read what Janice shared with us about her expat experience in Houston in her interview with Expat Arrivals.
Further reading
►For more on managing finances, see Banking, Money and Taxes in the USA
Are you an expat living in Houston, TX?
Expat Arrivals is looking for locals to contribute to this guide, and answer forum questions from others planning their move to Houston, TX. Please contact us if you'd like to contribute.
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