Side by Side: Comparing Houston, TX and Dallas, TX Cost of Living

With an 8% higher cost of living in Dallas, TX, you will need a household income of about $75,938 to maintain the same lifestyle standard you got for $64,526 in Houston, Texas. The Houston vs Dallas cost of living battle is clear-cut, with the Big D city taking the lead.

Assuming you plan on moving to Texas and are stuck between the choices of either city, your budget and salary can help you make the best decision.

As a single young professional or a family individual relocating, having an average review of your destination's necessary expenses can help make the perfect budget.

Let's walk you through a complete breakdown of what it takes to live in either Houston, Texas, or Dallas, Texas.

Housing Cost

Often, taking up the most significant chunk of your budget during any relocation is housing. The average house pricing and Rent are about 14% lower in Houston, TX than in Dallas, TX.

As a golden guide rule for home searching in a new place, your housing expense shouldn't be more than 30% of your total income.

However, this rule may be difficult if you move to a city with a high cost of living compared to where you are coming from. To ease your finances, you should spend more time researching homes with lower rents and mortgage rates.

Once you have decided on the preferred city, hiring helping hands to finalize your move is next. For instance, if you picked Bayou City, hiring local moving companies in Houston will make your transition much more accessible.

 Houston, TX   Dallas, TX
 Average Rent per month  $1,348  $1,575
 Average House Price  $335,000  $425,000


Compared to Houston, Dallas has an 8% difference in how much the residents pay for utilities. When moving to any new place, especially a different state in the U.S., it's always best to know the area's average utility bills and telecommunications expenses.

On average, residents in Dallas pay higher utility bills than Houston residents. This is familiar to Houston residents, as the index for utilities is below the national average. 

 Houston, TX  Dallas, TX
 Electricity Bill (kWh)  $0.14  $0.14
 Electricity Bill (per month)  $152.98  $219.02
 Mobile Phone Monthly Plan  $63.10  $60.83
 Internet  $68.45  $67.82


One of the tradeoffs of choosing Houston over Dallas is the higher cost of moving around in the city. Whether you own a car or use public transportation, you will experience a 2% higher commute bill in Bayou City.

If you are driving to work in your car, you should research the average traffic rate of your city. Intense traffic translates to more gas spent.

 Houston, TX   Dallas, TX
 Monthly Pass (Regular Price)  $60.00  $95.00
 Taxi Start (Normal Tariff)  $3.50  $3.00
 Gasoline (1 liter)  $0.82  $0.83


The significance of healthcare to residents in any area plays a vital role in determining the quality of life. Like in most states, different cities in Texas have fluctuating average costs in the health sector. 

Ready to find your dream home in Colorado?
Let us help you. Call or Text Kenna Real Estate at 303-955-4220 to get personalized assistance from our expert real estate agents. Find out what your home is worth in today's market.

If you choose Dallas as your next permanent residence, expect to pay a 13% higher healthcare bill than the national average. On the other hand, Houston offers around 5% cheaper costs than the national average.

 Houston, TX   Dallas, TX
 Doctor Visit  $106.41  $140.69
 Optometrist Visit  $143.73  $129.92
 Orthodontist Visit  $105.82  $130.53
 Prescription Drugs  $466.19  $499.87

Income and Salary

Before any move, get to know city residents' average monthly and annual income. If you already got a job in a new city like Houston or Dallas, you need to draw out a plan and make a budget. 

Most times, how much you earn determines how hard or easy the living cost in either city will be for you. Dallas could have a high cost of living, but if your earnings cover your monthly necessities, making the move will be a good choice.

   Houston, TX   Dallas, TX 
 Minimum Wage  $7.25  $7.25
 Median Annual Salary  $60,804  $65,946

Tax Rates

Living in the U.S. means taxes are an inseparable part of your life—Houston and Dallas are no exception. However, where things start getting unique and different is with individual states.

In Dallas, you get taxed on your property after a value assessment with set rates by the Dallas County Appraisal District. 

Meanwhile, the government tries to prevent excess tax billing in Houston by imposing specific caps on how much your home's tax value can increase yearly.

 Houston, TX   Dallas, TX
 Sales Tax  8.25%  8.25%
 Personal income Tax  —  —
 Property Tax  2.31%  2.5%


Living in Houston vs Dallas boils down to the little things and how much they cost. Consider the price of essential food items like Milk, bread, and eggs.

Ready to find your dream home in Colorado?
Let us help you. Call or Text Kenna Real Estate at 303-955-4220 to get personalized assistance from our expert real estate agents. Find out what your home is worth in today's market.

Whether you're a single young professional or a family of four relocating, these minor expenses add up in the long run to become a substantial part of how much you spend monthly.

 Houston, TX   Dallas, TX
 Whole Milk (1 liter)  $0.96  $0.92
 Bread (500g)  $3.09  $3.34
 Eggs (Regular, 12)  $4.00  $2.23
 Rice (White, 1kg)  $3.13  $4.09
 Coffee  $5.74  $5.71
 Water (1.5 liter bottle)  $2.23  $2.24

Goods and Services

The average cost of living in Houston, Texas, might be a fan favorite for fashionistas. The average price of purchasing clothing and engaging in entertaining activities is slightly lower in Houston than in Dallas, Texas. 

However, you should know that the price of clothing and any entertainment options would vary depending on where you shop. 

For clothing, a tip to cut costs would be investing more in thrift shops in Dallas or Houston. In the same way, you can reduce your entertainment expenses by minimizing how often you go to the cinema, go on dates, and visit restaurants.  

 Houston, TX   Dallas, TX
 A Pair of Jeans  $50.47  $59.00
 A Summer Dress from Chain Store  $47.30  $46.25
 A Pair of Nike Running Shoes (Mid-Range)  $103.43  $93.00
 Cinema (International Release, 1 Seat)  $15.00  $14.00
 Fitness Club (Monthly, 1 Adult)  $41.80  $37.00


If you are a growing family with kids, the cost of education for your children might be a worry. Parents and even young adults looking to return to college for a program need to know the average price in Houston or Dallas.

 Houston, TX  Dallas, TX 
 Preschool or Kindergarten (1 Child, Private, Monthly)  $944  $1,049
 Primary School (Private, Annually)  $15,509  $13, 712
 College (for Texans)  $6,673  $4,050


How protected are you in Houston or Dallas, and what will it cost?

The cost of living in Dallas compared to Houston based on insurance is also similar. 

 Houston, TX   Dallas, TX
 Health Insurance (Monthly)  $448  $521
 Home Insurance (Monthly)  $245   $274
 Auto Insurance (Monthly)  $186  $180


If you're an out-of-state mover new to Texas, the 8% lower cost of living compared to the national average in The Lone Star State might look attractive. 

When making the Houston vs. Dallas comparison, you should always ensure your budget is enough to cover all necessary expenses as a resident.

Here are a few reminders to have in mind as you make a decision

● House rent should preferably take only 30% of your income

● Your annual salary should match your lifestyle choices

● Always calculate utilities, transportation, and insurance cost

● Cook more, eat out less.

Contact Kenna Real Estate

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Post a Comment