Who would have thought that Houston, with its triple-digit heat and traffic that could test a saint, would also be one of America’s best bargains? A new study says you can actually live comfortably here—without winning the lottery first.
According to new research from GOBankingRates, residents need about $87,359 a year to live comfortably in Houston, placing the city at No. 36 nationally among America’s 50 largest metro areas. That puts the Bayou City ahead of more expensive Texas competitors like Austin, where “comfortable” living now requires an astonishing $122,875 annually.
The study examined cost-of-living data from the 2024 U.S. Census, Zillow’s Home Value Index, and the Bureau of Labor Statistics. Researchers applied the 50/30/20 budgeting rule—doubling the cost of essentials to account for savings and discretionary expenses—to determine what it really takes to maintain a balanced lifestyle in each city.
Texas might be known for wide-open spaces and no state income tax, but living “comfortably” still isn’t cheap. Here’s what GOBankingRates found for other major metros:
That makes Austin the only Texas city on the list requiring a six-figure income to sustain a comfortable lifestyle.
Compared nationally, California stands out on its own. Cities like San Jose, San Francisco, and San Diego require earning over $200,000 annually just to stay financially afloat. Meanwhile, Detroit takes the top spot for affordability, with residents needing just $65,733 for a comfortable lifestyle—less than a third of what it costs to live in California’s priciest metros.
Nationwide, the study found that over half of America’s 50 largest cities now require six-figure salaries to live comfortably. The combination of soaring housing costs, inflation, and stagnant wage growth have widened the affordability gap across much of the country.
Houston’s ranking confirms what locals already know: the city isn’t cheap, but it’s not ridiculous either. With an average single-family home priced around $273,000 and a typical monthly mortgage of $1,532, housing remains considerably more affordable than in most major metropolitan areas.
Add in reasonable costs for groceries, utilities, and transportation—about $43,679 annually, according to the study—and Houston stands out as a rare large city where residents can enjoy urban living without drowning in debt.
Houston’s livability score of 74 also helps it stand out. While that’s lower than some Sun Belt cities like Raleigh or Virginia Beach, it’s well above the most expensive coastal hubs. The mix of affordable housing, a strong job market, and a vibrant food scene seems to balance out the city’s well-known downsides: humidity, flooding, traffic and the occasional mosquito invasion.