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Dallas vs Houston: Cost of Living Comparison
6 minute read • Last update August 2024
With so many people moving to Texas each year, the decision between living in Dallas or Houston is a common dilemma. Both cities offer a wealth of job opportunities and vibrant lifestyle choices. However, aside from weighing up the distinct benefits that each city offers, developing an understanding of the cost of living in Dallas vs Houston is also essential.
Looking for detailed information to help you choose between one city and the other? In this article, we’ll compare the average Dallas vs Houston cost of living to give you a clear picture and help you make an informed choice.
Overview of Dallas and Houston
Both Dallas and Houston are major cities, with populations of around 2.3 million and 1.3 million, respectively. Each has its own set of unique advantages and charms that attract new residents. Let’s take a quick look at the primary cost factors and examine living index income guidelines. Then, we’ll explore more specific factors regarding the cost of living in Houston and Dallas.
Dallas
Known for its thriving economy and diverse population, Dallas, TX, is a hub for industries like technology, finance, and healthcare. As for lifestyle factors, Dallas boasts a rich cultural and fine arts scene, with top attractions including the Dallas Museum of Art and the historic West End District. Explore our comprehensive list of reasons to move to Dallas to learn more!
To accurately assess the cost of living in Dallas, Texas, consider that a sustainable total income in the Big D is around $80,000 annually per person.
Houston
The largest city in the Lone Star State, Houston, TX, is famous for its cultural diversity and booming energy, tech, and healthcare sectors. For example, the Texas Medical Center, the world’s largest medical complex, is located here. Learn more about the top reasons to move to Houston.
To accurately assess the cost of living in Houston, TX, you’ll need to calculate your household income based on suggested minimum earnings of $62,890 annually per person.
Housing costs
When comparing Dallas vs Houston cost of living, housing affordability is an essential factor. Each city has a median home cost well below the national average of $338,100. As the smaller of the two, many people would expect house prices to be lower in Dallas compared to Houston. However, that’s not the case. In fact, estate agents estimate that average house prices and rent are about 14% lower in Houston than in Dallas.
While precise costs will vary between specific neighborhoods, here’s a guideline for the Houston cost of living vs Dallas in terms of housing costs and rental prices:
| Housing Category | Houston Costs | Dallas Costs |
| Median Home Price | $247,900 | $295,100 |
| Studio Apartment Rental | $1,070 | $1,200 |
| 1 Bedroom Home/ Apartment Rental | $1,130 | $1,270 |
| 2 Bedroom Home/ Apartment Rental | $1,350 | $1,500 |
| 3 Bedroom Home/ Apartment Rental | $1,780 | $1,890 |
| 4 Bedroom Home/ Apartment Rental | $2,310 | $2,460 |
Utilities
The average monthly electric bill in Texas is $157.26. But, is Houston cheaper than Dallas in this respect, too? The answer is no. Electricity prices in Houston are often slightly higher than in Dallas due to infrastructure cost differences in the energy sector. However, other utilities like water and internet are typically cheaper.
Here’s a more detailed breakdown of the Houston vs Dallas cost of living with regard to utilities.
| Utility Type | Houston Costs | Dallas Costs |
| Average Gas Bill | $110.58 | $110.58 |
| Average Electricity Bill | $155.74 | $128.50 |
| Average Water Bill | $27 | $41.23 |
| Average Internet Bill | $60.33 | $65.24 |
Transportation
Transportation costs vary depending on your lifestyle and commuting needs. Both cities are prone to traffic congestion, especially during peak hours. So, if you plan on driving rather than taking public transportation, you’ll need to budget for extra gas spent during your commute. You’ll likely use more gas driving in Houston, which is ranked #8 nationally for congestion.
However, both cities have a reliable public transit system, primarily DART (Dallas Area Rapid Transit) in Dallas and METRO (Metropolitan Transit Authority) in Houston. Both offer monthly passes. Here’s a breakdown of the average transportation cost of living in Dallas vs Houston.
| Transportation Category | Houston Costs | Dallas Costs |
| Average Commute Time | 27 minutes | 25 minutes |
| Gas Cost Per Gallon | $2.979 | $3.119 |
| Parking Fees | $7-10 per hour | $5 per hour |
| Monthly Public Transport Pass | $90 | $96 |
Food and groceries
Food prices are another essential component in comparing the cost of living in Houston vs Dallas. According to the Bureau of Labor Statistics, average food expenses for American households amount to $5,703 in groceries. Of course, Dallas and Houston living are both complimented by a rich array of fine dining and upscale restaurants that can significantly increase average costs for food.
But is Dallas more expensive than Houston, or vice versa? Let’s continue our analysis of the average Houston and Dallas cost of living with some prices for everyday groceries and dining.
| Expense Type | Houston Costs | Dallas Costs |
| Basic Meal Out | $16 | $20 |
| Upscale Restaurant | $70 | $75 |
| Chicken Breast (1lb) | $4.16 | $7 |
| 1 Dozen Eggs | $3.29 | $3.65 |
| I Liter of Milk | $.80 | $1 |
| 1kg Potatoes | $1.20 | $1.93 |
Healthcare and insurance
Healthcare is a significant factor in any move to a new city because access to quality treatment at an affordable cost can significantly impact your overall well-being and financial stability.
In terms of healthcare and cost of living, Dallas is more expensive than most other cities. The higher costs can be attributed to the numerous specialized medical facilities and a higher demand for healthcare services. Conversely, the average cost of living in Houston is less due to its status as a major medical hub, which ensures competitive pricing.
Here’s a side-by-side Dallas vs Houston cost of living comparison for the most common medical expenses.
| Expense Type | Houston Costs | Dallas Costs |
| Doctor’s Visit | $93.50 | $151.25 |
| Dentist Visit | $129.33 | $129 |
| Optometrist Visit | $127 | $143.80 |
Top planning tip: In addition to healthcare itself, the cost of health insurance is also an important consideration. The average annual premium for Houston is $6,135, whereas Dallas residents pay about 13% more.
Education and childcare
Dallas and Houston both offer various educational opportunities, from preschool and charter schools to higher education. Of course, when it comes to you and your family’s education, the quality of tuition will likely be a more critical consideration than simply weighing up the Dallas cost of living vs Houston cost of living from a financial perspective. That said, here’s a quick comparison to help you budget.
| Facility Type | Houston Costs | Dallas Costs |
| Private Schooling | $1,367 | $1,213 |
| Daycare | $770 | $900 |
Higher education costs vary significantly by institution. You can compare Texas colleges and universities here for a more specific breakdown. The best institutions across both cities are:
| Houston | Dallas |
| University of Houston | The University of Texas |
| Rice University | The University of North Texas |
| University of St Thomas | Southern Methodist University |
Entertainment and lifestyle
The warm, humid climate is one of the most commonly cited reasons to move to Texas. As such, both cities have a better mix of indoor and outdoor living compared to many other locations, with activities available to suit every personal preference. However, generally speaking, Dallas offers a plethora of cultural and recreational activities, whereas Houston offers more in terms of lifestyle and entertainment options.
Let’s break down the most common lifestyle and entertainment costs so you can factor them into your overall Dallas vs Houston cost of living comparison.
| Type of Activity | Houston Costs | Dallas Costs |
| Fitness Club Monthly Membership | $37.65 | $41.09 |
| 1 Hour Tennis Court Rental | $17.50 | $17.50 |
| Cinema Tickets | $15 | $14 |
Taxes and miscellaneous expenses
Having broken down the majority of relevant living costs, there are just a few final details regarding taxes and miscellaneous expenses to iron out. For example, you now know that Houston has lower rents. But when comparing Dallas living, you’ll also need to consider property taxes, mortgage rates, crime rates, and ancillary costs like mobile phone plans and home insurance.
Here’s a quick rundown to help you make your final decision about whether to choose Dallas or Houston.
| Factor to Consider | Houston | Dallas |
| Property Tax Rate | 1.46% | 1.36% |
| Mortgage Rate (30-year fixed) | 3.20% | 3.25% |
| Mobile Phone Monthly Plan with Calls and 10GB+ Data | $58.13 | $67.95 |
| Home Insurance ($300,000 home) | $6,610 | $5,045 |
| Crime rate | High | Moderate |
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We hope this financially focused breakdown of the Dallas vs Houston debate has provided useful comparisons and helped you make a more informed decision. Still not sure about moving to the Great State of Texas? Learn more about the pros and cons of living in TX. Cost is undeniably a critically essential factor. However, you may also find these resources helpful in your research and planning:
Wherever you choose as your new home, selecting the right utility plan can help you make considerable savings. At BKVE, we offer a range of straightforward and transparent electricity plans with no base charges or usage fees.
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