Houston is considered moderately expensive in 2025, with average rent for a 2-bedroom apartment at $1,950 and slightly higher grocery and utility costs compared to the national average.
Is the true cost of living in Houston higher than you think? As a major metropolitan area, Houston’s expenses can add up quickly. Let’s break down what it really costs to live comfortably in Space City in 2025.
Housing Costs
Housing is the biggest expense for most Houstonians. Typical options include apartments, townhomes, and single-family homes. Prices vary significantly by neighborhood and property type.
Renting a 2-bedroom apartment in Houston ranges from $1,600 in outlying areas to over $2,300 in prime locations like Montrose or The Heights. Buying a 3-bedroom house starts around $350,000 in suburbs like Katy or Cypress, climbing to $600,000+ inside the Loop.
Some key neighborhood comparisons:
- Montrose: 2BR apartment $2,100+, 3BR house $700K+
- Katy: 2BR apartment $1,700, 3BR house $375K
- The Woodlands: 2BR apartment $1,900, 3BR house $450K
Many Houston neighborhoods have Homeowners Associations (HOAs), adding $200-500/month in fees. Renters may have some utilities included.
Utilities and Energy Bills
Basic utilities in Houston cost around $200/month for an apartment or $350/month for a house. This includes electricity, water, gas, and trash.
Air conditioning is a must in Houston’s humid climate, spiking electric bills in summer months. Expect to pay $150+ for cooling a house in August. A monthly utilities estimate:
| Utility | Apartment | House |
|---|---|---|
| Electricity | $100 | $200 |
| Water | $50 | $80 |
| Gas | $30 | $50 |
| Trash | $20 | $20 |
Groceries and Daily Expenses
Groceries in Houston cost around $400/month for a single person or $1,000/month for a family of four. This assumes cooking most meals at home.
A typical grocery basket with basics like milk ($4/gallon), bread ($3/loaf), and eggs ($3/dozen) costs about 5% more than the national average. Dining out ranges from $12 fast casual meals to $50+ upscale dinners per person.
Taxes and Fees
Texas has no state income tax, but property taxes in Houston are high to make up for it. Expect to pay 2.2-2.5% of your home’s value annually. On a $400,000 house, that’s $700+/month.
Sales tax in Houston is 8.25%, adding to everyday costs. Vehicle registration is $75/year. Some neighborhoods have additional assessments for services or amenities.
Monthly Budget Summary
| Expense | Single | Couple | Family of 4 |
|---|---|---|---|
| Housing | $1,600 | $2,000 | $2,800 |
| Utilities | $200 | $250 | $400 |
| Groceries | $400 | $700 | $1,000 |
| Transportation | $300 | $500 | $800 |
| Healthcare | $300 | $600 | $1,200 |
| Other | $400 | $700 | $1,000 |
| Total | $3,200 | $4,750 | $7,200 |
Note: All figures are gross monthly estimates. Actual budgets vary.
Lifestyle Considerations
Living comfortably in Houston requires balancing housing costs with other priorities. Homes inside the Loop offer shorter commutes and better access to dining, arts and parks – at a premium price. Suburban homes are more affordable and spacious, but require more driving.
Newer luxury apartments come with amenities but higher rents and HOA fees. Older properties in established neighborhoods may have lower sticker prices but higher maintenance costs. Consider your budget, lifestyle and commute carefully.
Frequently Asked Questions
- What salary do you need to live comfortably in Houston?
A single person needs around $3,200/month ($38K/year) before taxes. A couple should budget $4,800/month ($58K/year). Families may require $7,000+/month ($85K+/year). - Is Houston cheaper than other major Texas cities?
Houston is slightly less expensive than Austin or Dallas overall. Housing and energy costs are the biggest differences. - Are property taxes higher in Houston vs the suburbs?
Property tax rates are similar (around 2.2-2.5%) across Greater Houston. Actual tax bills are higher inside the city due to higher home values. - How much should I budget for transportation in Houston?
Plan for $300/month per person for gas, insurance, and maintenance if you drive regularly. Public transit passes are $50-100/month. - What are the most and least expensive neighborhoods in Houston?
Affluent areas like River Oaks, West University and The Heights have the highest housing costs. More affordable options exist in Alief, Sunnyside and Acres Homes.