Harris County · Texas
Houston cost of living (TX)
Price levels published by the Bureau of Economic Analysis for Houston-Pasadena-The Woodlands, TX, with the national average set to 100 — so 108 means things cost 8% more here than the US average.
Quick answer
Houston costs 1.4% below the national average — all-items price level 98.6, rank 55 of 94 covered metros. A $100,000 national-average salary needs to be $98,629 here. Utilities is the reason, at 95.3.
- All items
- 98.6US average = 100
- Housing
- 104.54.5% above the national average
- Goods
- 100.6in line with the national average
- Other services
- 95.64.4% below the national average
Price level by component
Where the difference actually comes from.
| Component | Index | vs US | What it covers |
|---|---|---|---|
| Goods | 100.6 | +0.6% | Groceries, fuel, clothing, durable purchases. |
| Housing | 104.5 | +4.5% | Rents and imputed rents — the biggest single swing factor. |
| Utilities | 95.3 | -4.7% | Electricity, gas, water and other household energy. |
| Other services | 95.6 | -4.4% | Healthcare, dining, repairs, personal services. |
Reading the Houston price level
What the 98.6 figure actually means for a household here.
Houston prices sit 1.4% below the US average — an all-items parity of 98.6, rank 55 of 94 covered metros. Effectively the national average. The median covered metro reads 100.8.
Utilities drives it: 95.3, 4.7% below average. Housing pulls the other way at 104.5. The spread between the cheapest and dearest component is 9.2 points, so the headline number hides real variation — a renter and an owner in Houston do not face the same cost gap versus the rest of the country.
A $100,000 national-average salary needs to be $98,629 here to buy the same basket. Run it the other way: the $62,894 median household income in Houston is worth $63,768 in national-average dollars, 18.8% below the $78,538 US median. Local pay does not cover the local price level.
Parities are published for Houston-Pasadena-The Woodlands, TX as a whole. Neighbourhood prices inside that metro diverge widely, and BEA revises the series annually.
What your salary is worth in Houston, TX
Enter a salary. We deflate it by the local price level (98.6 where 100 is the US average) and show what you would need to earn here to match the same pay somewhere average.
- Real value here
- $63,768
- Needed to match US average
- $62,032
- Monthly difference
- $-72
What a local paycheck is really worth
Nominal pay is only half the story.
$62,894 median household income in Houston is worth $63,768 in national-average dollars. BEA calls that real income: income × 100 ÷ 98.6.
Frequently asked questions
Common questions about this area.
- Is Houston expensive?
- No — 1.4% below the US average, rank 55 of 94 covered metros. utilities is the component furthest from average at 95.3.
- What salary do you need to live in Houston, TX?
- $98,629 to match a $100,000 national-average salary. The local median household earns $62,894, worth $63,768 after adjusting for the 98.6 price level.
- Why is the cost of living low in Houston?
- Utilities at 95.3 versus housing at 104.5. A 9.2-point spread between components means one category, not general inflation, sets the headline figure.
More Houston data
Other Houston datasets on this site.
- Houston population and income
- Houston sales tax rate
- Houston property tax
- Houston home values and rent
- Houston crime rates
- Houston public schools
- Houston weather normals
- Houston commute times
- Houston jobs and wages
Statewide: Texas cities · Texas ZIP codes · Texas sales tax · Texas counties
2024 BEA Regional Price Parities, published for Houston-Pasadena-The Woodlands, TX. Parities are metro-wide, so a single neighbourhood can sit well above or below these figures.