Is it cheaper to live in Houston or Phoenix?

Houston, TX is cheaper. Its monthly baseline of $1,350 (1BR rent + utilities) runs about 6% below Phoenix, AZ's $1,430, mainly because of rent.

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

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $46,000 a year in Houston versus $50,000 in Phoenix.

Which has lower taxes, Houston or Phoenix?

Houston is taxed under Texas's rules (no state income tax and a 6.25% state sales tax); Phoenix under Arizona's (a top state income tax rate of 2.50% and a 5.6% state sales tax).

Houston vs Phoenix Cost of Living 2026

Houston

Texas

$1,350/mo est.

Phoenix

Arizona

$1,430/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 $1,430 in Phoenix, AZ. Overall, Houston, TX is roughly 6% cheaper to live in day-to-day than Phoenix, AZ, driven mainly by rent.

Median household income is $62,894 in Houston, TX and $77,041 in Phoenix, AZ — about 18% higher in Phoenix, AZ. Texas has no state income tax and a 6.25% state sales tax; Arizona has a top state income tax rate of 2.50% and a 5.6% state sales tax.

Houston, TX

Phoenix, AZ

Rent

Studio

$1,142

$1,127

+1% in Houston, TX

1 Bedroom

$1,156

$1,253

+8% in Phoenix, AZ

2 Bedroom

$1,375

$1,493

+9% in Phoenix, AZ

3 Bedroom

$1,664

$1,771

+6% in Phoenix, AZ

Buying a Home

Median Home Value

$253,400

$381,900

+51% in Phoenix, AZ

Income

Median Household Income

$62,894

$77,041

+22% in Phoenix, AZ

Metro Median Wage (annual)

$49,410

$51,380

+4% in Phoenix, AZ

People & Lifestyle

Median Age

34.3 yr

34.8 yr

+0.5 yr in Phoenix, AZ

Homeownership

42.0%

57.1%

+15.1 pp in Phoenix, AZ

Bachelor's+ (25+)

36.0%

32.3%

+3.7 pp in Houston, TX

Avg Commute

27.3 min

25.7 min

+1.6 min in Houston, TX

Crime (per 100k/yr)

Violent Crime

1,155.2

799.6

+31% in Houston, TX

Property Crime

4,325.3

2,338.9

+46% 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

75.1°F

+4.8°F in Phoenix, AZ

Annual Precipitation

54.6 in

8.2 in

+46.5 in in Houston, TX

Gas

Regular Gasoline

$3.85/gal

$5.57/gal

+45% in Phoenix, AZ

Area: Houston vs West Coast (PADD 5).

Public Transit

Base Fare (one-way)

$1.25

$2.00

+60% in Phoenix, AZ

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

Utilities

Electricity (¢/kWh)

16.4

15.6

+5% in Houston, TX

Natural Gas ($/MCF)

$24.61

$19.69

+20% in Houston, TX

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

Groceries

Milk (gal)

$4.16

$4.37

+5% in Phoenix, AZ

Bread (lb)

$1.73

$2.10

+21% in Phoenix, AZ

Eggs (doz)

$2.19

$2.25

+3% in Phoenix, AZ

Ground Beef (lb)

$6.56

$7.23

+10% in Phoenix, AZ

Chicken (lb)

$1.90

$2.14

+12% in Phoenix, AZ

Bananas (lb)

$0.61

$0.74

+21% in Phoenix, AZ

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

State Taxes

Sales Tax (TX / AZ)

6.25%

5.6%

+0.7 pp in TX

Income Tax (top rate)

None

2.50%

+2.5 pp in AZ

Houston vs Phoenix — FAQ

Is it cheaper to live in Houston or Phoenix?: Houston, TX is cheaper. Its monthly baseline of $1,350 (1BR rent + utilities) runs about 6% below Phoenix, AZ's $1,430, mainly because of rent.
How much more do you need to earn to live in Houston than in Phoenix?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $46,000 a year in Houston versus $50,000 in Phoenix.
Which has lower taxes, Houston or Phoenix?: Houston is taxed under Texas's rules (no state income tax and a 6.25% state sales tax); Phoenix under Arizona's (a top state income tax rate of 2.50% and a 5.6% 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).