What Is The Cost Of Living In Houston Vs. Austin?

Jessica Stone
by Jessica Stone

When considering a new place to call home in the Lone Star State, Houston and Austin may be at the top of your list – and for good reason. On the one hand, Houston, known as the energy capital of the U.S., offers a booming real estate marking, close proximity to the Gulf of Mexico, coastal beaches, a thriving arts district, and world-renowned universities.

On the other hand, Austin has consistently been deemed one of the best cities in the country to purchase a home, is known for its vibrant music scene, and has become a favorite among California transplants. But, how do these two cities stack up when it comes to cost of living?

The overall cost of living index in Houston, Texas is 95.5, meaning it is nearly 5% cheaper to live in Houston than the national average (100). Austin, Texas, on the other hand, has a cost of living index of 129.4, so it is considerably more expensive than both Houston and the national average. Houston’s median home price is $220,000, which is a pleasant 25% lower than the national average of $291,700. Meanwhile, the median home price in Austin is $551,200 – a staggering 150.5% more than Houston.

Aside from median housing prices, let’s take a deeper look at how the cost of living compares in Houston vs. Austin.

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Home Prices in Houston vs. Austin

The cost of owning a home in Houston more affordable than the rest of the U.S. Whereas, housing prices in Austin tend to be considerably higher than the national average. The median cost of a home in Houston is only $220,000, while Austin’s median home price is $551,200. This means that you’d end up spending more than double for a home in Austin compared to Houston. Overall, cheaper housing can be seen as a major advantage to choosing to live in Houston instead of Austin.

Examining housing cost indexes can give you an even better picture of how home prices differ in Houston versus Austin. Based on a nationwide average of 100, Houston’s housing cost index is 80.2 and Austin’s is 159.6. This means that housing in Austin, Texas is 99% more expensive than Houston, Texas. Though, prices will vary based on where you specifically live in either city.

Rent Prices in Houston vs. Austin

Like home prices, rental prices vary depending on a number of factors, like size, location, and quality. The average rent for an apartment in Houston, Texas is $1,205 per month and the average apartment size is 880 square feet. Though, the rent you will pay in the city ultimately comes down to the neighborhood that you settle in.

For instance, South Park is the most affordable neighborhood in Houston, with an average rent of $625 per month. Whereas, the most expensive neighborhood is Fourth Ward, where the average monthly rent is $1,982.

With that said, examine the following table for a detailed breakdown on the average monthly rent in some of Houston’s many neighborhoods:

NeighborhoodAverage Monthly Rent
Fourth Ward$1,982
The Museum District$1,895
Memorial$1,584
Tanner Heights$1,449
Greenwood$1,324
Northside Village$1,277
Clear Lake$1,227
Turtle Lake$1,170
Ponderosa Forest$1,002
Timber Meadow$954

On the other hand, the average rent in Austin, Texas is $1,619 per month and the average apartment size is 864 square feet. This means that, on average, apartments are smaller and more expensive in Austin than Houston. However, like Houston, rental prices differ in Austin based on the specific neighborhood you rent in.

For example, the most affordable neighborhoods in Austin are Colony Park, North Point, and Agave, each of which have average rents of $1,192 per month. Whereas, Downtown Austin is the most expensive neighborhood, with an average monthly rent of $2,981.

The table below provides a more comprehensive look at the average monthly rent in some of the many neighborhoods across Austin:

NeighborhoodAverage Monthly Rent
Downtown Austin$2,981
Hancock$2,202
Steiner Ranch$1,815
South Lamar$1,724
Bee Cave Woods$1,723
South Congress$1,571
Olympic Heights$1,452
Buckingham Estates$1,408
Colorado Crossing$1,292
Georgian Acres$1,201

Taxes in Houston vs. Austin

Taxes are another critical consideration when comparing the cost of living between two different locations. Although both cities are located in the same state and enjoy the benefit of no state income tax, there are some differences between the taxes in Houston versus the taxes in Austin, highlighted in further detail below.

However, overall, the taxes in Austin, Texas are 24.7% more expensive than Houston, Texas.

Sales Taxes

Texas has a relatively modest statewide base sales tax of 6.25%. However, the total sales tax you pay is a lot higher when you factor in all the additional county and city taxes. The highest rate you could pay in the state is 8.25%, which happens to be the total sales tax rate in both Houston and Austin.

Property Taxes

The state of Texas is known for having some of the highest property taxes in the country. Harris County, which encompasses Houston and the neighboring suburbs, boasts some of the highest property taxes not just in Texas, but also in the entire nation. The average effective property tax rate in Houston is 1.19%, which is higher than the national average of 1.07%. This means that Houston residents pay 1.19% of their home’s assessed value in property taxes annually, which equates to a median annual payment of $1,004.

Austin’s property taxes are even higher, with an average effective property tax rate of 1.35%. This means that the median annual property tax payment for homeowners in Austin is $2,544.

Taxes in Houston vs. Austin Comparison

CitySales TaxProperty Tax
Houston, TX8.25%1.19% (average effective rate)
Austin, TX8.25%1.35% (average effective rate)

Income & Economy in Houston vs. Austin

The median household income in Houston is $49,399, which is roughly 14% lower than the national median household income of $57,652. When compared to Austin, however, Austin residents make about 29% more than Houston residents – with Austin’s median household income of $63,717. This means that, overall, there’s a better chance of you making more money in Austin than in Houston.

These two cities also differ considerably when it comes to unemployment rates. The unemployment rate in Houston is quite a bit higher than both Austin and the national average. Houston’s unemployment rate is 8% and Austin’s is 5.1%, compared to the national average of 6%.

Grocery Expenses in Houston vs. Austin

As food and groceries are expenses that people encounter on a daily basis, the overall grocery and food index is another factor that impacts the cost of living in a particular location. If you live in Austin instead of Houston, you’d be looking at about a 1.4% savings on food and groceries.

The overall grocery cost index in both Houston and Austin are below the national average of 100, coming in at 98.1 and 96.7 respectively. Refer to the following table for a more detailed look at the average prices of groceries in Houston vs. Austin.

Food ItemHoustonDenver
Bread (one loaf)$2.44$2.33
Gallon of milk$3.08$3.13
Dozen eggs$1.99$2.75
Local cheese (8 oz)$4.88$5.47
Boneless chicken breast (1 lb.)$3.55$3.79
Apples (1 lb.)$1.75$1.57
Tomatoes (1 lb.)$1.33$1.38
Bananas (1 lb.)$0.57$0.61
Potatoes (1 lb.)$0.89$1.11
Onions (1 lb.)$0.91$1.07
Bottle of water (11 fl. oz)$1.54$1.55

Transportation Costs in Houston vs. Austin

Whether you choose to move to Houston or Austin, you must also consider transportation costs in order to accurately calculate the overall cost of living in both cities. These costs include expenses like gas prices, vehicle purchase costs, bus fares, monthly transit fees, and other public transportation expenses. Transportation Costs in Houston vs. Austin

Of all the cities in Texas, Dallas is considered by some to have the best public transportation system, as the light rail can take you virtually anywhere and covers most of the city. Though, Austin ranks number nine on the U.S. News & World Report of the 10 10 U.S. cities for public transportation. The city boasts 3,000 stops and a light rail, completing 140,000 rides per day.

Although both cities have higher transportation costs than the rest of the country, with Houston’s transportation cost index of 119 and Austin’s transportation cost index of 109.9, you’d enjoy a very marginal savings of 7.6% on transportation costs in Austin.

Cost FactorHoustonAustin
Gallon of gas$2.18$2.15
Monthly public transit pass$40.00$41.25
Taxi trip in downtown (approx. five miles)$14.44$14.93
New Volkswagen Golf$24,000$21,845

Entertainment & Miscellaneous Costs in Houston vs. Austin

Cost FactorAverage Price in HoustonAverage Price in Austin
Monthly local gym membership$38.86$39.73
Movie ticket$12.00$12.00
Pack of cigarettes$7.08$7.00
Domestic beer (1 pint)$5.00$4.00
Cappuccino (mid-range area)$3.89$4.22
Pair of running shoes$75.97$83.57
Fast food combo meal$8.00$7.50
Basic meal with drink (inexpensive restaurant)$15.00$15.00

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Houston vs. Austin: Which is More Expensive?

When you consider the overall cost of living index, Houston and Austin may be located in the same state but they differ quite a bit. For starters, Houston’s cost of living index is below the national, while Austin’s is considerably higher. However, when you compare these two cities together, Austin is about 35.5% more expensive than Houston. The cost savings in Houston is primarily contributed to cheaper housing, as Austin’s median home cost is 150% more. Though, Houston residents also enjoy more affordable healthcare and utilities.

While homes tend to be more expensive in Austin than Houston, Austin residents have a better chance of earning more money, with the higher median household income. Not to mention, with an unemployment rate quite a bit lower than the national average, this is a positive sign for the economy in Austin.

Jessica Stone
Jessica Stone

Jessica considers herself a home improvement and design enthusiast. She grew up surrounded by constant home improvement projects and owes most of what she knows to helping her dad renovate her childhood home. Being a Los Angeles resident, Jessica spends a lot of her time looking for her next DIY project and sharing her love for home design.

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