If you’re considering moving to Houston, knowing how Houston’s cost of living compares to where you currently live will give you a better handle on whether relocating is the right decision. This guide will cover Houston’s living costs, from housing to food and healthcare. We’ll provide data from a local-centric cost of living index and comparison tools and look at how Houston ranks for livability compared to other U.S. cities. We’ll also share a handy set of online resources to measure and compare the cost of living and expenses in other Texas cities. When you’re planning to live in a new city, the cost of living there will be a combination of expenses required to maintain your desired lifestyle. Cambridge Dictionary defines cost of living as “the amount of money people need to spend to buy basic goods or services such as food, clothes, and a place to live.” This overall cost can vary significantly based on location, even within Texas. But the living expenses you’ll pay for typically include the following categories: However, the costs often extend beyond these basics to cover other expenses, such as: These elements, when combined, establish the core costs associated with a particular way of living. However, your living standard is primarily influenced by your income and debts and how the dollar amounts compare to the costs of basic needs in your location or, in this case, the Houston community where you might want to live. Let’s take a quick look at some ways you can compare your current living cost with what you might experience if you move to Houston. A cost of living index (CLI) monitors how these basic expenses shift over time in different states, cities, or regions. They provide a way to compare the price of maintaining a particular standard of living. The CLI for a city like Houston is calculated by assessing the price of essential goods and services in different areas, such as housing, food, transportation, and healthcare. A local index is typically standardized, with a base city assigned a baseline index value (usually set at 100). Other cities are then compared against this benchmark. For example, a Texas community with a CLI of 125 would signify that living there is 25% more expensive than the base location, while an index of 75 indicates it’s 25% less expensive. A cost of living index will typically break down and score each basic expense by category. Here are separate scores for Houston from the AreaVibes Houston Cost of Living Index: Data source used: C2ER Council for Economic and Social Research According to AreaVibes, Houston is 1% higher than the national average cost of living among the U.S. cities or urban areas they analyzed (as of January 2024). While Houston’s overall cost of living is 9 percent higher than the Texas average, essential items such as groceries, goods and services, health care, and utilities are priced at a level consistent with similar urban areas.What makes up the ‘cost of living’ in Houston?
What’s a Houston cost of living index (CLI)?
Cost perspective
