Cost of Living in Houston

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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.

Guide to Moving to Houston

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.

Getting Around in Houston

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.

Lifestyle in Houston

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