Cost of Living Comparison | Houston.org (2024)

FAQs

Cost of Living Comparison | Houston.org? ›

Houston has the third lowest living costs among the most populous U.S. metro areas, according to the C2ER Cost of Living Index 2023 Annual Average. Houston's living costs are 5.9 percent below the nationwide average and 29.2 percent below the average of the nation's most populous metropolitan areas.

Published since 1968, the Cost of Living Index, published by the Council for Community and Economic Research (C2ER), has been the most consistent source of city-to-city cost comparisons available. COLI data is recognized by the U.S. Census Bureau, U.S. Bureau of Labor Statistics, and CNN Money.

The cost of living is the total amount of money required to live in a certain area and cover your basic necessities. Expenses typically factored into cost of living calculations include housing, food and taxes. It may also include such expenses as transportation, health care, entertainment and education.

Cost of Living in Houston, TX

Houston, TX area prices were up 2.3% from a year ago. The largest increases were found in Transportation, Food, and Housing.

A $100,000 salary does more for you in Houston, after accounting for taxes and cost of living, than it does in most major cities. After taxes, a Houstonian earning $100,000 takes home about $83,000 according to consumer finance website SmartAsset, placing the city ninth in a list of 72 cities.

With that in mind, a good salary in Texas is between $55K and $73K.

A popular standard for budgeting rent is to follow the 30% rule, where you spend a maximum of 30% of your monthly income before taxes (your gross income) on your rent.

Mississippi. Mississippi has the lowest cost of living in the United States. With a cost of living index of 83.3, expenses are nearly 17% less than the national average. Mississippi's housing costs are the lowest in the nation.

What percentage should cost of living be? ›

Allow up to 50% of your income for needs

Your needs — about 50% of your after-tax income — should include: Groceries. Housing. Basic utilities.

Simply take the total amount of money (salary) you're paid for the year and divide it by 12. For example, if you're paid an annual salary of $75,000 per year, the formula shows that your gross income per month is $6,250.

Supply chain bottlenecks and soaring demand for goods and services following the re-opening of the economy after the pandemic-related lockdowns sent prices for goods and services skyrocketing to four-decade highs last summer. But over the last few months, inflation has been decelerating.

Houston ranks third most affordable living among the most populous U.S. metros, according to C2ER Cost of Living Index 2023 Annual Average.

A family of four estimated monthly costs are 3,970.9$ without rent. A single person estimated monthly costs are 1,119.3$ without rent. Houston is 32.5% less expensive than New York (without rent). Rent in Houston is, on average, 58.0% lower than in New York.

Individuals need roughly $100,000 to live comfortably on their own, and families of four need about $224,000.

According to a study by GoBankingRates, the minimum income needed to be considered "rich" in Houston is $121,394.

around 30% of your total household budget. That way, you can live comfortably, build your savings, be prepared for emergency expenses, and still enjoy a good quality of life. So, if you're looking at one-bedroom apartments in Houston (and plan to live alone), your income would ideally be at least $48,520.

According to Numbeo, the monthly average cost of living is $1,446.40 for a single person (without rent) and $5,173 for a family of four (without rent). If you're thinking about or planning a move to this world-class Texan city, it's essential that you understand living costs.