Is it cheaper to live in Houston or Newark?

Newark, NJ is cheaper. Its monthly baseline of $1,210 (1BR rent + utilities) runs about 11% below Houston, TX's $1,360, mainly because of rent.

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

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $46,000 a year in Houston versus $39,000 in Newark.

Which has lower taxes, Houston or Newark?

Houston is taxed under Texas's rules (no state income tax and a 6.25% state sales tax); Newark under New Jersey's (a top state income tax rate of 10.75% and a 6.625% state sales tax).

Houston vs Newark Cost of Living 2026

Houston

Texas

$1,360/mo est.

Newark

New Jersey

$1,210/mo est.

Monthly estimate = 1BR rent + electricity + gas

A one-person monthly baseline (1BR rent plus typical utilities) runs $1,360 in Houston, TX versus $1,210 in Newark, NJ. Overall, Newark, NJ is roughly 11% cheaper to live in day-to-day than Houston, TX, driven mainly by rent.

Median household income is $62,894 in Houston, TX and $48,416 in Newark, NJ — about 23% higher in Houston, TX. Texas has no state income tax and a 6.25% state sales tax; New Jersey has a top state income tax rate of 10.75% and a 6.625% state sales tax.

Houston, TX

Newark, NJ

Rent

Studio

$1,142

$1,111

+3% in Houston, TX

1 Bedroom

$1,156

$978

+15% in Houston, TX

2 Bedroom

$1,375

$1,386

+1% in Newark, NJ

3 Bedroom

$1,664

$1,695

+2% in Newark, NJ

Buying a Home

Median Home Value

$253,400

$337,800

+33% in Newark, NJ

Income

Median Household Income

$62,894

$48,416

+23% in Houston, TX

Metro Median Wage (annual)

$49,410

$61,430

+24% in Newark, NJ

People & Lifestyle

Median Age

34.3 yr

34.8 yr

+0.5 yr in Newark, NJ

Homeownership

42.0%

24.1%

+17.9 pp in Houston, TX

Bachelor's+ (25+)

36.0%

17.4%

+18.6 pp in Houston, TX

Avg Commute

27.3 min

33.2 min

+5.9 min in Newark, NJ

Crime (per 100k/yr)

Violent Crime

1,153.8

582.5

+50% in Houston, TX

Property Crime

4,324.9

1,961.8

+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

70.3°F

54.9°F

+15.4°F in Houston, TX

Annual Precipitation

54.6 in

46.3 in

+8.4 in in Houston, TX

Gas

Regular Gasoline

$3.52/gal

$3.86/gal

+10% in Newark, NJ

Area: Houston vs East Coast (PADD 1).

Public Transit

Base Fare (one-way)

$1.25

—

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

Utilities

Electricity (¢/kWh)

16.4

23.3

+42% in Newark, NJ

Natural Gas ($/MCF)

$30.48

$15.93

+48% in Houston, TX

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

Groceries

Milk (gal)

$4.00

$4.31

+8% in Newark, NJ

Bread (lb)

$1.75

$1.92

+10% in Newark, NJ

Eggs (doz)

$2.21

$2.19

+1% in Houston, TX

Ground Beef (lb)

$6.45

$6.90

+7% in Newark, NJ

Chicken (lb)

$1.90

$2.19

+15% in Newark, NJ

Bananas (lb)

$0.62

$0.69

+12% in Newark, NJ

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

State Taxes

Sales Tax (TX / NJ)

6.25%

6.625%

+0.4 pp in NJ

Income Tax (top rate)

None

10.75%

+10.8 pp in NJ

Houston vs Newark — FAQ

Is it cheaper to live in Houston or Newark?: Newark, NJ is cheaper. Its monthly baseline of $1,210 (1BR rent + utilities) runs about 11% below Houston, TX's $1,360, mainly because of rent.
How much more do you need to earn to live in Houston than in Newark?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $46,000 a year in Houston versus $39,000 in Newark.
Which has lower taxes, Houston or Newark?: Houston is taxed under Texas's rules (no state income tax and a 6.25% state sales tax); Newark under New Jersey's (a top state income tax rate of 10.75% and a 6.625% 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).