Is it cheaper to live in Anchorage or Houston?

Anchorage, AK is cheaper. Its monthly baseline of $1,320 (1BR rent + utilities) runs about 3% below Houston, TX's $1,360, mainly because of rent.

How much more do you need to earn to live in Anchorage than in Houston?

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $42,000 a year in Anchorage versus $46,000 in Houston.

Which has lower taxes, Anchorage or Houston?

Anchorage is taxed under Alaska's rules (no state income tax and no state sales tax); Houston under Texas's (no state income tax and a 6.25% state sales tax).

Anchorage vs Houston Cost of Living 2026

Anchorage

Alaska

$1,320/mo est.

Houston

Texas

$1,360/mo est.

Monthly estimate = 1BR rent + electricity + gas

A one-person monthly baseline (1BR rent plus typical utilities) runs $1,320 in Anchorage, AK versus $1,360 in Houston, TX. Overall, Anchorage, AK is roughly 3% cheaper to live in day-to-day than Houston, TX, driven mainly by rent.

Median household income is $98,152 in Anchorage, AK and $62,894 in Houston, TX — about 36% higher in Anchorage, AK. Alaska has no state income tax and no state sales tax; Texas has no state income tax and a 6.25% state sales tax.

Anchorage, AK

Houston, TX

Rent

Studio

$1,001

$1,142

+14% in Houston, TX

1 Bedroom

$1,052

$1,156

+10% in Houston, TX

2 Bedroom

$1,433

$1,375

+4% in Anchorage, AK

3 Bedroom

$1,952

$1,664

+15% in Anchorage, AK

Buying a Home

Median Home Value

$375,900

$253,400

+33% in Anchorage, AK

Income

Median Household Income

$98,152

$62,894

+36% in Anchorage, AK

Metro Median Wage (annual)

$60,200

$49,410

+18% in Anchorage, AK

People & Lifestyle

Median Age

34.9 yr

34.3 yr

+0.6 yr in Anchorage, AK

Homeownership

63.7%

42.0%

+21.7 pp in Anchorage, AK

Bachelor's+ (25+)

37.7%

36.0%

+1.7 pp in Anchorage, AK

Avg Commute

19.0 min

27.3 min

+8.3 min in Houston, TX

Crime (per 100k/yr)

Violent Crime

1,016.5

1,153.8

+14% in Houston, TX

Property Crime

2,796.2

4,324.9

+55% in Houston, TX

FBI Crime Data Explorer. Offenses per 100,000 residents per year; agency reporting practices vary, so this is approximate.

Climate

Avg Annual Temperature

37.4°F

70.3°F

+32.9°F in Houston, TX

Annual Precipitation

17.9 in

54.6 in

+36.7 in in Houston, TX

Gas

Regular Gasoline

$5.09/gal

$3.52/gal

+31% in Anchorage, AK

Area: West Coast (PADD 5) vs Houston.

Public Transit

Base Fare (one-way)

—

$1.25

Adult base one-way fare — — vs Houston METRO (2026).

Utilities

Electricity (¢/kWh)

28.2

16.4

+42% in Anchorage, AK

Natural Gas ($/MCF)

$14.40

$30.48

+112% in Houston, TX

Residential, state-level averages (EIA). MCF = 1,000 cubic feet.

Groceries

Milk (gal)

$4.82

$4.00

+17% in Anchorage, AK

Bread (lb)

$2.04

$1.75

+14% in Anchorage, AK

Eggs (doz)

$2.19

$2.21

+1% in Houston, TX

Ground Beef (lb)

$7.36

$6.45

+12% in Anchorage, AK

Chicken (lb)

$2.01

$1.90

+6% in Anchorage, AK

Bananas (lb)

$0.70

$0.62

+12% in Anchorage, AK

Average prices — West vs South (BLS). Regional where available, otherwise U.S. average.

State Taxes

Sales Tax (AK / TX)

None

6.25%

+6.3 pp in TX

Income Tax (top rate)

None

about equal

Anchorage vs Houston — FAQ

Is it cheaper to live in Anchorage or Houston?: Anchorage, AK is cheaper. Its monthly baseline of $1,320 (1BR rent + utilities) runs about 3% below Houston, TX's $1,360, mainly because of rent.
How much more do you need to earn to live in Anchorage than in Houston?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $42,000 a year in Anchorage versus $46,000 in Houston.
Which has lower taxes, Anchorage or Houston?: Anchorage is taxed under Alaska's rules (no state income tax and no state sales tax); Houston under Texas's (no state income tax and a 6.25% state sales tax).

Sources: US Census Bureau, ACS 5-Year (rent, income, home value, demographics); NOAA Climate Normals 1981–2010 (climate); EIA weekly retail (gas); Tax Foundation 2026 (state taxes).