Is It Affordable to Live in Houston, TX?

The Short Answer

It depends on your situation. With an affordability score of 50 out of 100, Houston falls in the moderate range. Some residents find it manageable, while others — especially renters earning below the median — face significant cost burdens.

Housing Costs vs. National Average

Home prices in Houston are 24% below the national median of $410K. Rent is 7% below the national median of $1,500/month.

The price-to-income ratio in Houston is 5.3x, meaning the median home costs 5.3 times the median household income. Financial experts generally consider anything above 5x to be unaffordable.

Income You Need

To comfortably purchase the median home in Houston (spending no more than 28% of gross income on housing), you'd need an annual household income of approximately $89K. The median household income in Houston is $58K — a gap of $31K.

For renters, you'd need about $56K per year to keep rent at or below 30% of income. Currently, 31.5% of renters are cost-burdened (spending more than 30% on rent).

Market Trends

Home prices changed by 2.5% year-over-year, while rents shifted by 1.8%. Price growth is moderate.

Similar Cities to Compare

These cities have similar affordability profiles to Houston: