Houston Cost of Living: What to Expect Before You Move

Thinking about moving to Houston? You’re not alone. Every year, thousands of people relocate to the Houston metro area for its thriving job market, diverse neighborhoods, and warm Southern charm. But one of the biggest questions new residents ask is:

“How does the cost of living in Houston compare to where I live now?”

Whether you’re relocating from the West Coast, East Coast, or another Texas city, the answer often surprises people — Houston is one of the most affordable major cities in the country.

Let’s break down what you can expect when budgeting for life in Houston, League City, Friendswood, Clear Lake, or Galveston.

🏡 Affordable Housing

Housing is where Houston really shines. Compared to cities like Los Angeles, San Francisco, or New York, you get significantly more space for your dollar here.

• Average Rent (1 Bedroom): ~$1,450/month

• Median Home Price: ~$310,000

While home prices have risen nationwide, Houston’s market remains balanced — offering affordable options whether you’re buying your first home, upgrading, or downsizing. Many families find they can own a larger, newer home here for the same price as a small condo in other major metros.

👉 Neighborhood Insight: Suburbs like League City, Friendswood, and Clear Lake offer top-rated schools, newer homes, and easy access to Houston — all while staying budget-friendly.

🚘 Transportation: Car-Friendly, But Plan for It

Houston is known for being a car-dependent city, and most residents rely on their vehicles for daily life. While public transit exists, it’s limited to METRO buses and light rail lines in central areas.

• Monthly Transportation Costs: $300–$450

• Gas Prices: Typically lower than the U.S. average

• Parking: Widely available and far cheaper than most urban centers

If you’re moving from a city with robust public transit like Chicago or New York, factor in the cost of owning and maintaining a car — but enjoy the freedom and space that comes with it.

🛒 Lower Everyday Costs

Houston’s overall cost of living is below the national average in key categories like groceries, dining, and entertainment.

• Groceries: ~5–10% less than the U.S. average

• Dining Out: ~$15–$20 at most casual restaurants

• Healthcare: Generally affordable, with top-rated hospitals in the Texas Medical Center

Residents often find their daily and weekly budgets stretch further here than in coastal or high-tax cities.

⚡ Utilities: Expect Higher Summer Bills

Let’s be real — Houston heat is no joke. With long summers and high humidity, air conditioning is a necessity.

• Expect higher electric bills in summer months (often $200–$300 for larger homes).

• Many newer homes in League City, Friendswood, and Pearland are built with energy-efficient systems that help keep costs manageable.

👉 Tip: Ask your Realtor to provide past utility data when buying or renting to better estimate monthly expenses.

💰 No State Income Tax = More Take-Home Pay

Here’s one of Houston’s biggest financial advantages — Texas has no state income tax. That means you keep more of your paycheck every month. Combined with affordable housing and lower daily costs, it’s easy to see why Houston attracts families, entrepreneurs, and remote workers alike.

📊 Quick Comparison: Houston vs. Major U.S. Cities

Depending on where you’re moving from, you could save 20–40% on overall living expenses by relocating to Houston or its nearby suburbs.

✅ Bottom Line: Houston Makes Financial Sense

If you’re considering a move, Houston offers one of the best affordability-to-lifestyle ratios in the U.S. You’ll find more home for your money, lower daily costs, and more financial freedom — all without sacrificing culture, dining, or opportunity.

📍 Ready to Explore Life in Houston?

Whether you’re comparing costs or ready to start house hunting, The Freund Group at FIV Realty is here to help. Our team specializes in helping relocation clients find the right home — at the right price — across Houston, League City, Friendswood, Clear Lake, and beyond.

📞 Contact The Freund Group today to get a free cost-of-living comparison and local housing guide tailored to your move.