Is it cheaper to live in Houston or New York City?

Houston, TX is cheaper. Its monthly baseline of $1,350 (1BR rent + utilities) runs about 32% below New York City, NY's $1,990, mainly because of rent.

How much more do you need to earn to live in Houston than in New York City?

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $46,000 a year in Houston versus $68,000 in New York City.

Which has lower taxes, Houston or New York City?

Houston is taxed under Texas's rules (no state income tax and a 6.25% state sales tax); New York City under New York's (a top state income tax rate of 10.90% and a 4% state sales tax).

Houston vs New York City Cost of Living 2026

Houston

Texas

$1,350/mo est.

New York City

New York

$1,990/mo est.

Monthly estimate = 1BR rent + electricity + gas

A one-person monthly baseline (1BR rent plus typical utilities) runs $1,350 in Houston, TX versus $1,990 in New York City, NY. Overall, Houston, TX is roughly 32% cheaper to live in day-to-day than New York City, NY, driven mainly by rent.

Median household income is $62,894 in Houston, TX and $79,713 in New York City, NY — about 21% higher in New York City, NY. Texas has no state income tax and a 6.25% state sales tax; New York has a top state income tax rate of 10.90% and a 4% state sales tax.

Houston, TX

New York City, NY

Rent

Studio

$1,142

$1,633

+43% in New York City, NY

1 Bedroom

$1,156

$1,705

+47% in New York City, NY

2 Bedroom

$1,375

$1,781

+30% in New York City, NY

3 Bedroom

$1,664

$2,065

+24% in New York City, NY

Buying a Home

Median Home Value

$253,400

$751,700

+197% in New York City, NY

Income

Median Household Income

$62,894

$79,713

+27% in New York City, NY

Metro Median Wage (annual)

$49,410

$61,430

+24% in New York City, NY

People & Lifestyle

Median Age

34.3 yr

38.0 yr

+3.7 yr in New York City, NY

Homeownership

42.0%

32.8%

+9.2 pp in Houston, TX

Bachelor's+ (25+)

36.0%

41.0%

+5.0 pp in New York City, NY

Avg Commute

27.3 min

40.6 min

+13.3 min in New York City, NY

Crime (per 100k/yr)

Violent Crime

1,155.2

690.9

+40% in Houston, TX

Property Crime

4,325.3

2,413.5

+44% 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

70.3°F

55.0°F

+15.3°F in Houston, TX

Annual Precipitation

54.6 in

49.9 in

+4.7 in in Houston, TX

Gas

Regular Gasoline

$3.85/gal

$4.44/gal

+15% in New York City, NY

Area: Houston vs New York City.

Public Transit

Base Fare (one-way)

$1.25

$3.00

+140% in New York City, NY

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

Utilities

Electricity (¢/kWh)

16.4

28.6

+74% in New York City, NY

Natural Gas ($/MCF)

$24.61

$18.90

+23% in Houston, TX

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

Groceries

Milk (gal)

$4.16

$4.14

+1% in Houston, TX

Bread (lb)

$1.73

$1.92

+11% in New York City, NY

Eggs (doz)

$2.19

$2.25

+3% in New York City, NY

Ground Beef (lb)

$6.56

$6.90

+5% in New York City, NY

Chicken (lb)

$1.90

$2.02

+6% in New York City, NY

Bananas (lb)

$0.61

$0.68

+11% in New York City, NY

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

State Taxes

Sales Tax (TX / NY)

6.25%

+2.3 pp in TX

Income Tax (top rate)

None

10.90%

+10.9 pp in NY

Houston vs New York City — FAQ

Is it cheaper to live in Houston or New York City?: Houston, TX is cheaper. Its monthly baseline of $1,350 (1BR rent + utilities) runs about 32% below New York City, NY's $1,990, mainly because of rent.
How much more do you need to earn to live in Houston than in New York City?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $46,000 a year in Houston versus $68,000 in New York City.
Which has lower taxes, Houston or New York City?: Houston is taxed under Texas's rules (no state income tax and a 6.25% state sales tax); New York City under New York's (a top state income tax rate of 10.90% and a 4% 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).