Macie Kelly / Houston Public Media
Houston Skyline as seen from the Waco Street bridge in east Houston. February 4, 2020
Houstonians spent more of their incomes on transportation than residents in most of the other major urban areas in the country between 2023 and 2024, according to a new report from the federal government.
The U.S. Bureau of Labor Statistics (BLS) reported residents in the greater Houston area allocated almost 20% of their spending on transportation, nearly 3 percentage points higher than the national average.
That’s also a higher percentage than any of the other 21 major metropolitan areas measured in the new BLS report, including Los Angeles, Miami and San Francisco.
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Greater Houston residents are also spending marginally more on housing than the average American. Houstonians spent 33.9% of their budget on housing, compared to the nationwide average of 33.2%.
Dallas-Fort Worth area residents similarly spend more of their budget on transportation and housing, though not in such disparate proportions as Houston. In terms of spending on transportation, DFW is second only to Houston.
“Individuals are moving into the Texas Triangle from other parts of Texas just because that has become a very, very high economic spot over the last 10, 15 years,” said Edward Leps, an economist at BLS. “I mean, it’s always been a very bustling area in terms of economies.”
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Though greater Houston residents are spending marginally higher shares of their incomes on housing, some other major U.S. cities are spending more, like Honolulu (36.9%), New York (38.2%) and Miami (40%).
Houston residents’ average income during 2023 and 2024 was $105,800, about $2,800 higher than the national average. Yet, Houstonians are spending roughly $7,500 more in expenditures than the average American.
One other key disparity between Houston and the national average in spending is entertainment. While the average American spent 4.6% of their budget on entertainment, Houstonians dedicated 6.1%.
In certain categories, though, Houstonians are spending less of their money than the average American. That includes food, healthcare and education.