Median rent is 2% lower in Houston ($1,361/mo vs $1,392/mo). Buying is cheaper in Houston, where the median home runs $277,800 versus $373,700. Households earn more in Houston ($64,813 vs $52,060 a year). Taken together, Houston is the more affordable choice with a cost index of 99.7 against 112.6 — about 11% lower overall prices. After adjusting income for local prices, a typical paycheck stretches further in Houston, TX.
Cost of living verdict
Houston is 11% cheaper overall
Cost of Living Index: 99.7 in Houston vs 112.6 in Newark (US national average = 100)
City A
Houston, TX
City B
Newark, NJ
How much would you need to earn in Newark, NJ to maintain your standard of living from Houston, TX?
Equivalent salary in Newark, NJ
$84,709
You'd need $9,709 more (13% 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
Houston
Texas
Newark
New Jersey
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
Median rents are similar in both cities: $1,361/mo in Houston and $1,392/mo in Newark. Home buyers face a steeper market in Newark: the median home is $373,700 versus $277,800 in Houston — 26% more expensive.
1BR Fair Market Rent
2BR Fair Market Rent
BLS OEWS 2023 — metro-level data
State tax data is not yet available for these cities.
Houston
Income tax: N/A
Sales tax: N/A
Newark
Income tax: N/A
Sales tax: N/A
Newark has cleaner air on average: 46.0 AQI (Good) compared to 59.0 AQI (Moderate) in the other city. Lower AQI means cleaner, healthier air.
Pick Houston if you prioritize lower overall cost of living (index 99.7 vs 112.6).
Pick Houston if you prioritize higher median household income ($64,813/yr).
Pick Newark if you prioritize cleaner air quality (avg AQI 46.0).
Is Houston cheaper than Newark?
Houston is cheaper overall, with a cost of living index of 99.7 versus 112.6 (US average = 100). That means prices run about 11% lower in Houston.
How much is rent in Houston vs Newark?
Median rent is $1,361/mo in Houston, TX and $1,392/mo in Newark, NJ. Houston, TX has the lower rent by about 2%.
Which has higher salaries — Houston or Newark?
Median household income is $64,813 in Houston, TX and $52,060 in Newark, NJ. Houston, TX has the higher median income. Note that BLS occupational wages in the table above show wages for specific jobs.
Which city has better air quality?
Newark, NJ has better air quality on average: 46.0 AQI versus 59.0 AQI. Both are EPA AirNow annual averages; lower is better.
Which has lower taxes — Houston or Newark?
State tax data is not yet available for one or both cities.
What salary do I need in Newark to match my Houston income?
To maintain the same purchasing power, a salary of $100,000 in Houston, TX is equivalent to roughly $112,945 in Newark, NJ (using the BEA Regional Price Parity ratio). Use the salary calculator above for any income amount.
Data last updated: December 1, 2026 · Sources: US Census ACS, BEA RPP, BLS OEWS, HUD FMR, EPA AirNow, Tax Foundation · Methodology
