Cost of Living in Austin vs Houston

When comparing the cost of living in Austin, TX and Houston, TX, the data shows a clear difference across all major expense categories. Austin has a cost index of 128 while Houston sits at 105 — both measured against the US national average of 100.

The average 1-bedroom apartment in Austin rents for $1,950/month, compared to $1,480/month in Houston. That's a 24% difference in housing costs alone — the single largest expense for most households.

Beyond rent, everyday expenses like groceries, utilities, and transportation also vary significantly. Austin residents spend an average of $375/month on groceries, while Houston residents spend $340/month. Transportation costs are $95/month in Austin versus $80/month in Houston.

In total, the estimated monthly cost of living in Austin is $2,977, while Houston comes in at $2,372. Over a full year, that gap amounts to $7,260 — a meaningful figure for anyone planning a relocation or comparing job offers across these two cities.

Based on current cost-of-living data, Houston is the more affordable option. Living in Houston costs approximately 20% less per month than Austin, saving residents around $605/month or $7,260/year.

Housing is typically the biggest driver of this difference. The lower rent in Houston ($1,480/month) compared to Austin ($1,950/month) accounts for a significant portion of the overall savings. Utilities and groceries also tend to be lower in Houston.

That said, cost of living is only one factor in a relocation decision. Job market conditions, salary levels, quality of life, climate, and proximity to family all play important roles. Use the calculator above to personalize these numbers based on your actual spending habits — the default figures are city averages and your individual costs may vary.

For a broader comparison, explore our City vs City Comparison Tool or check the Rent Comparison Tool to see how Austin and Houston stack up against other US cities.