According to a recent survey, Houston is among the ten most expensive cities in the United States, which may surprise some people. Surprisingly, the study revealed that the most overpriced U.S. city isn’t Los Angeles, New York, or even San Francisco, but rather Newark in New Jersey.
Highland Cabinetry, a U.S.-based custom cabinetry manufacturer, conducted the survey, which evaluates cities based on important factors like unemployment, traffic, pollution, safety, income, real estate prices, and cost of living.
For example, each city was given a score after the data was crunched, with 100 representing the lowest score. The study gave each city a number based on these measures, with 100 representing the worst or highest offender. Houston came in eighth place in the research with a score of 87.1.
“Cost of living alone doesn’t define the value of a city. What our data shows is that several high-cost urban areas come with serious trade-offs,” Highland Cabinetry states. “Whether it’s long commutes, safety issues, or environmental stress. For many residents, the price tag isn’t the only consideration; it’s what that money gets you. And in many cases, the return on investment just isn’t there.”
Houston is not only the largest city in the Lone Star State; it is also the fourth largest city in the nation. Having over 3 million inhabitants, the city is a melting pot of cultures, cuisines, and several communities.
With its booming economy, vibrant arts scene, and diverse population, Houston has much to offer. However, like many urban centers across the United States, the city is grappling with a rising cost of living that has become a pressing concern for its residents.
The company Highland Cabinetry obtained information for its analysis from Zillow, the U.S. Bureau of Labor, and other sources. Living expenses, real estate prices, unemployment, income, pollution, safety, and traffic are some of the important factors that are taken into account. The study gave each city a number based on these measures, with 100 representing the worst or highest offender.
A general rule of thumb is that a household should spend no more than 30% of its income on housing costs. But as living costs increase exponentially, much cheaper living is nonetheless a relic of a long-ago era. The Kinder Institute reported more than half of Houstonians now spend more than the above-stated percentage on rent.
The Cost of Living in Houston
A study by SmartAsset, indicated that a single adult needs to earn $90,771 to achieve a financially comfortable lifestyle in Texas, while a family of four requires $204,922. This is significantly higher than the median household income in Texas, which is about $76,000. The rising costs of housing and utilities in Houston contribute to this challenge, making even a $62,000 income feel insufficient for some.
The following factors play a vital role in the overall affordability landscape:
1. Income Levels
Income is the most significant factor affecting your affordability in Houston. According to the U.S. Bureau of Labor Statistics, the average salary in Houston is competitive compared to other major cities. However, the actual impact on affordability depends on your specific job, industry, and career trajectory.
Higher Income Brackets: Residents earning higher salaries typically have more flexibility in choosing neighborhoods, housing types, and leisure activities.
Lower Income Brackets: Those with modest incomes find it challenging to afford housing in certain desirable areas, leading to compromises in lifestyle.
2. Housing Market Trends
The Houston housing market is dynamic, with prices fluctuating based on demand, neighborhood desirability, and economic factors.
Renting vs. Buying: Depending on income, you may choose to rent or buy a home. Houston offers a variety of options, from affordable apartments in the suburbs to luxury homes in affluent neighborhoods.
Location Matters: Affordability also varies significantly by location. Areas like Memorial, River Oaks, Downtown District, Midtown, Montrose, and the Heights may offer higher rental prices, while neighborhoods far on the outskirts of the city extending into Harris County jurisdiction tend to be more budget-friendly.
The 10 Most Overpriced Cities In The US
1 Newark, New Jersey
2 New York, New York
3 Los Angeles, California
4 Detroit, Michigan
5 Wilmington, Delaware
6 Washington, D.C.
7 Chicago, Illinois
8 Houston, Texas
9 San Francisco, California
10 Miami, Florida
Texas Study
In a separate study released earlier this year, a new cost-of-living report unveiled surprising news for folks in Houston: H-town Houston is not the priciest place to live in Texas! The heavyweight title goes to Dallas, followed by Austin.
According to Numbeo’s cost-of-living index for 2025, Dallas comes in as the most expensive city in Texas and 24th in North America, scoring 65.8. This index compares living costs in other cities to New York City, which is set at 100. Austin scores 61.7, Houston is at 60.6, and San Antonio is at 58.8.
Overall, Houston ranks 40th out of 52 cities in North America according to the study. Numbeo’s index also looks at costs for things like groceries, meals out, transport, and utilities, but it doesn’t include rent.
When rent is factored in, Houston still sits in third place among Texas cities. Dallas ranks 21st in North America with a score of 57.1, just ahead of Austin at 56.6.
Houston is 35th (51.4), and San Antonio is 42nd (34.6). As for rent, while Dallas holds the top spot in the overall cost of living, Austin has the highest rent prices. Numbeo’s rent index for Austin is at 50.1, making it 12th among major cities in North America and the most expensive in Texas, beating out Dallas, Houston, and San Antonio. Houston comes in at 27th.
For reference, the rent index in New York City is 100. Numbeo explains that this index compares the cost of renting in a city to New York City. So if a city’s rent index is 50, it means renting there is about 50% cheaper than in NYC. Here’s how the rent index looks in Texas: Dallas: 46.2 – Houston: 39.8 – San Antonio: 34.6
Conclusion
Despite recent studies revealing the higher cost of living for Houstonians, Houston still reflects, to a reasonable degree, a city of affordability, particularly when taking housing expenses into account, even though it may not be as affordable as it once was, yet some studies raise concerns about certain indicators.
To put it more succinctly, affordability in Houston is influenced by each person’s income and lifestyle preferences.
Houston News Today Senior Editor and Reporter C.Walker can be reached at HoustonNewsToday@yahoo.com.
