Median rent is 21% lower in Houston ($1,361/mo vs $1,729/mo). Buying is cheaper in Houston, where the median home runs $277,800 versus $555,300. Households earn more in Austin ($93,658 vs $64,813 a year). Taken together, Austin is the more affordable choice with a cost index of 98.3 against 99.7 — about 1% lower overall prices. After adjusting income for local prices, a typical paycheck stretches further in Austin, TX.
Cost of living verdict
Austin is 1% cheaper overall
Cost of Living Index: 98.3 in Austin vs 99.7 in Houston (US national average = 100)
City A
Austin, TX
City B
Houston, TX
How much would you need to earn in Houston, TX to maintain your standard of living from Austin, TX?
Equivalent salary in Houston, TX
$76,113
You'd need $1,113 more (1% higher).
Based on BEA Regional Price Parity (cost index) for each metro area. This estimates overall purchasing power; it does not account for taxes or take-home pay differences.
Metric
Austin
Texas
Houston
Texas
Population
Median Household Income
Annual
Median Gross Rent
Per month
Median Home Value
Cost of Living Index
US avg = 100
1BR Fair Market Rent
HUD FMR
2BR Fair Market Rent
HUD FMR
3BR Fair Market Rent
HUD FMR
Air Quality Index
Lower = cleaner
Top State Income Tax
Top marginal rate
State Sales Tax
Statewide base rate
Median Age
Years
✓ = better value · Sources: Census ACS, BEA, HUD Fair Market Rents, EPA AirNow, Tax Foundation
Renters will find significantly cheaper housing in Houston — median rent of $1,361/mo versus $1,729/mo in Austin, a 21% difference. Home buyers face a steeper market in Austin: the median home is $555,300 versus $277,800 in Houston — 50% more expensive.
Metric
Austin
Houston
Software Developer
Registered Nurse
Elementary Teacher
Electrician
Accountant
Higher wage highlighted · BLS OEWS 2023 (metro-level data)
State tax data is not yet available for these cities.
Austin
Income tax: N/A
Sales tax: N/A
Houston
Income tax: N/A
Sales tax: N/A
Houston has cleaner air on average: 59.0 AQI (Moderate) compared to 65.0 AQI (Moderate) in the other city. Lower AQI means cleaner, healthier air.
Pick Austin if you prioritize higher median household income ($93,658/yr).
Pick Houston if you prioritize cheaper rent ($1,361/mo median).
Pick Houston if you prioritize cleaner air quality (avg AQI 59.0).
Austin is cheaper overall, with a cost of living index of 98.3 versus 99.7 (US average = 100). That means prices run about 1% lower in Austin.
Median rent is $1,729/mo in Austin, TX and $1,361/mo in Houston, TX. Houston, TX has the lower rent by about 21%.
Median household income is $93,658 in Austin, TX and $64,813 in Houston, TX. Austin, TX has the higher median income. Note that BLS occupational wages in the table above show wages for specific jobs.
Houston, TX has better air quality on average: 59.0 AQI versus 65.0 AQI. Both are EPA AirNow annual averages; lower is better.
State tax data is not yet available for one or both cities.
To maintain the same purchasing power, a salary of $100,000 in Austin, TX is equivalent to roughly $101,484 in Houston, TX (using the BEA Regional Price Parity ratio). Use the salary calculator above for any income amount.
Data last updated: June 1, 2026 · Sources: US Census ACS, BEA RPP, BLS OEWS, HUD FMR, EPA AirNow, Tax Foundation · Methodology
