Houston vs. Austin: True Cost-of-Living Breakdown (2025 Data)

Deciding between Houston and Austin? Both cities have no state income tax. But your money goes much further in Houston. Data shows that Houston's cost of living is 4.2% below the national average. Austin is 19.3% above the average.

Housing Costs: The 42% Gap

The biggest difference is the price of homes. Houston offers more space for less money.

• Houston Median Home Price: $335,000
• Austin Median Home Price: $575,000
• The Math: Austin homes are 41.7% more expensive.

With a $500,000 budget, you can buy a large 4-bedroom home in a top Houston suburb. In Austin, that same budget might only get you a small 3-bedroom home far from the city center.

Property Taxes: The Real Story

Texas has high property taxes because it has no income tax. While Austin's tax rate is slightly lower, Houston's lower home prices mean you pay less in total taxes each year.

• Harris County (Houston): 2.13% avg rate
• Travis County (Austin): 1.76% avg rate

Because Houston homes cost less, your annual tax bill is usually $3,000 - $4,500 lower than in Austin.

Daily Costs

Gas is often $0.15 cheaper in Houston. Child care is also more affordable. You'll pay about $9,200 a year in Houston versus $11,400 in Austin.