When it comes to the cheapest cities in Texas, United States, Austin and Houston come to mind. But even beyond the cost of living, these cities are a magnet for young professionals. The job market is booming, especially in tech, healthcare, and energy. In fact, in Texas alone, companies like Apple, Dell, and Tesla have their offices stationed there, so there are many job opportunities right after school. Add these to the top-tier universities, and the diverse cultures all contribute to making these cities a great place for life, school, and work.
However, the question of which is more affordable comes to mind. Austin or Houston?
Understanding their cost differences helps you with your budget. This article compares the cost of living in Austin, TX, vs. Houston, TX, across all fronts, including rent, food, transportation, education expenses, and safety and security costs. You’ll also learn smart tips to boost your savings.
Overview of Cost of Living in Austin vs Houston
On average, the total cost of living in Houston is 2.8% lower than in Austin. Houston generally has lower housing prices than Austin. The listing price is $421,489, around 14.4% lower than in Austin. However, you’ll spend more money on groceries in Houston. The average cost goes for 2.8% higher than in Austin.
Even the transportation cost is higher in Houston, with 0.7%. Utilities is however, lower in Houston, with an average cost of 7.7% lower than in Austin.
Austin vs Houston Cost of Living Comparison
Housing Costs: Austin vs Houston
Housing costs between Austin vs Houston depends whether you’re renting or purchasing your home. Most people usually rent for a start, until they get the hang of the city and decide to stay permanently, which then leads them to purchase a home. Some usually purchase right away. In either case, you’ll spend more buying and renting a home in Austin than in Houston.
Average Monthly Rent
In comparing Houston vs Austin, the average monthly rent spans:
Austin: $1,350 – $1870/month
Houston: $1,100 – $1368/month.
The cost depends on whether you’re getting a house, condo, apartment, or townhome. Apartments cost less and condos more.
Home Purchase Prices
Houston’s home purchase price is about 14% lower than in Austin. The rates are:
Austin: $460k – $550k
Houston: $345k – $430k
Although your initial payment and rate determine the monthly mortgage.
Utilities in Austin and Houston
Utilities cover your electricity, water, internet, and gas. Costs largely depend on the provider, but as housing in Austin is higher, you’ll spend more on utilities than in Houston. But here’s a budget range:
Energy Bill in Austin: $210.68
Energy Bill in Houston: $185.39
Phone Bill in Austin: $205.01
Phone Bill in Houston: $201.96
Food and Groceries Expenses
In choosing between Austin, Texas vs Houston, you should also consider your feeding expenses. Prices are generally higher in Houston than in Austin, but just a bit, about 3%. Here’s a breakdown:
| Grocery Items | Austin, TX | Houston, TX |
|---|---|---|
| Whole Milk | $4.60 | $4.60 |
| Eggs | $4.59 | $4.23 |
| Steak | $16.05 | $16.08 |
| Frying Chicken | $1.41 | $1.66 |
| Bread | $3.98 | $4.06 |
| Fresh Orange Juice | $4.92 | $5.01 |
| Sugar | $4.63 | $5.06 |
| Corn Flakes | $5.19 | $5.30 |
| Sweet Peas | $1.60 | $1.67 |
| Frozen Meal | $3.45 | $3.87 |
| Pizza | $10.22 | $12.36 |
Transportation Costs
Houston vs. Austin cost of living analysis considers how you get by in each city. But Houston costs about 0.7% more than Austin, Texas. The average gasoline prices are:
Austin: $2.65
Houston: $2.68
Tire balances costs:
Austin: $75.10
Houston: $75.02
Then, if you prefer public transport, here’s a breakdown of local bus fares:
Austin: $1.25 for a single ride. Commuter service is $3.50.
Houston: $1.25 per ride. Then, park & ride ranges from $2 to $4.50, depending on distance. Although having a monthly pass will reduce the price.
Healthcare Costs
You also want to consider your health expenses, especially if you have a health condition or are moving in with your family. Healthcare in Houston is 5.7% higher than in Austin. Looking at it critically, you’ll have:
| Health Visits | Austin | Houston |
|---|---|---|
| Optometrist Visit | $110.96 | $184.55 |
| Doctor Visit | $126.20 | $105.70 |
| Dentist Visit | $132.27 | $149.33 |
| Prescription Drug | $16.09 | $16.38 |
| Pain Relief Drug | $11.34 | $11.68 |
Lifestyle and Entertainment
If your life revolved around work, you’d break down. So, it’s best to fill your days with other leisure activities like watching a movie, doing yoga, or even hanging out with friends at a nearby bar. Our breakdown of the cost of living in Houston vs Austin considers lifestyle and entertainment prices, and here’s what you get:
| Activities | Austin | Houston |
|---|---|---|
| Movie ticket | $13.95 | $12.48 |
| Yoga Class | $23.22 | $23.47 |
| To-Go Latte | $6.59 | $6.55 |
| Beer (6-pack of Heineken) | $10.12 | $10.48 |
Safety and Security Costs
Your safety is paramount, no matter the city you decide to live in. Austin appears safer than Houston and has a lower crime rate. Yet, both cities offer safer neighborhoods and places to avoid. Still on our breakdown of the Austin vs Houston cost of living, security services for those hiring standard guards, the cost is as follows:
Austin: $15-$24/hour
Houston: $15-$30/ hour
Education Expenses
In comparing Austin, Texas, vs. Houston, your education expenses should be up your alley if you’re moving to further your schooling.
The average tuition cost in University of Texas at Austin is $42,778 – $44,908 per year.
University of Houston, on the other hand, offers an average cost of $22,700 – $23,000/year.
Job Market and Average Salaries
Job-wise, tech and innovation thrive in Austin, while Houston thrives in the energy and port sector. The average salaries for these jobs are:
Tech Industry in Austin: $50.47/hour and $104,985/year.
Energy Industry in Houston: $42.35 per hour, and $65,900 – $109,300 per year.
Of course, other industries thrive in both cities, whether you’re in the medical, creative, aerospace, transportation, or manufacturing sectors.
In the cost of living in Austin, TX vs Houston, TX comparison, salaries in Houston appear higher, but your standard of living depends on other expenses like housing, groceries, transportation, and utilities. So, it’s wise to be in control of your finances to make the best of your earnings.
Tips for Saving on Living Expenses in Texas Cities
The price of living in Austin and Houston might feel overwhelming. It doesn’t have to be so. There are many smart tips to cut down on your budget. You can:
- Consider renting a house rather than purchasing. It’s cheaper and more flexible, especially if you’re just moving into the city. If you’re schooling, you can even get a housemate to split rent with. uhomes.com helps you find an affordable student apartment no matter your budget. For example, you can find an apartment in Austin, Texas, for as low $289 per month. The properties are all verified and are located near major universities.
- Take public transport as it is much more affordable than owning and maintaining a private car. It saves you from gas prices, insurance bills, vehicle maintenance costs, and urban parking payments. Plus, it’s super comfy and easy to get by.
- Cook your own meal. Not only does it save costs, but it’s much healthier, especially as most of Texas’s cuisines are high in cholesterol and sauces. Cooking allows you to control the ingredients you use, and, in so doing, reduces illnesses such as high blood pressure, obesity, and cardiovascular disease. This, in turn, saves you healthcare costs.
- Live in safe areas. Austin and Houston are generally safe, and this safety precedes financial stability, especially if you’re purchasing a home. The low crime rates in these cities elevate property value and reduce insurance prices.
Conclusion
Again, you ask, what is the cost of living in Austin, TX, vs. Houston, TX? Your monthly expenses while in Austin are approximately $3,150, while in Houston are about $2,610. That is, adding your house rent, utilities, education, transportation costs, healthcare, life, and entertainment costs.
However, if your budget doesn’t match up, you can always reduce your spending by taking public transport, cooking your own meal, getting a housemate if you’re living alone, and living in safe neighborhoods for added protection.
FAQs on Cost of Living in Austin vs Houston
Is it more expensive to live in Houston or Austin?
Austin costs more to live in. Houston is about 2.8% lower than in Austin. But Austin is known for its live music and urban living. On the other hand, Houston has good culture institutions and a diverse job market. Education costs are equally lower there than in Austin.
Is $100,000 a good salary in Houston?
One can get by with a $100,000 salary in Houston. In fact, if you’re working in the energy industry, the average salary per year is between $65,900 – $109,300. But, from financial analysis, $100,000 equals $83,343 to $84,840 after taxes have been deducted, which still covers the local cost of living.
What is the average rent for students in Austin vs Houston?
A one-bedroom apartment in Austin costs $1,600 per month or more. Houston, on the other hand, goes for $1,200-$1,300 monthly. To make it more affordable, many students get roommates so they split the bills.
What are the cheapest grocery stores in Texas?
Some of the cheapest grocery stores in Texas are Kroger, Walmart, WinCo Foods, Aldi, and warehouse clubs like Sam’s Club and Costco. Many consider Walmart more affordable, but the prices at Costco are said to be 18% below those at Walmart.
Which city is better for international students, Austin or Houston?
Houston is a better city for international students compared to Austin. The city is more welcoming, culturally diverse, and costs less to live in. But if you’re going for a tech program, Austin has the best environment.
