Is Houston, TX cheaper than Phoenix, AZ?

Based on cost of living data, Houston, TX is 6.5% cheaper than Phoenix, AZ. This translates to saving $487 per month.

What salary do I need in Houston, TX to live like I do in Phoenix, AZ?

If you earn $150,000 in Phoenix, AZ, you'd need approximately $144,156.977 in Houston, TX to maintain the same standard of living.

How does housing cost compare between Phoenix, AZ and Houston, TX?

Housing in Houston, TX is 21.4% cheaper than in Phoenix, AZ. For a two-bedroom apartment, rent is $1,500/month in Houston, TX compared to $1,750/month in Phoenix, AZ.

How much can I save per month by moving from Phoenix, AZ to Houston, TX?

Moving from Phoenix, AZ to Houston, TX could save you approximately $487 per month, or $5843 per year, based on a $150,000 salary.

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Phoenix, AZ

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Houston, TX

Cost of Living Comparison 2026

Current salary in Phoenix, AZ

Numbers update automatically as you type

You'd save $487/month moving to Houston, TX

$150.0K in your current city equals $144.2K in Houston, TX

Rent data from HUD ZIP-level estimates · COL index from Phoenix-Mesa-Chandler, AZ area

Overall Cost

↓ 6.5%

Less expensive

Monthly Impact

$487

Savings

Annual Impact

$5.8K

Per year

Based on monthly living costs (rent, groceries, utilities, transport, healthcare). Home purchase prices shown separately below.

Phoenix, AZ

Population:1608K

Cost Index:100

Median Home:$414K

Houston, TX

Population:2305K

Cost Index:94

Median Home:$245K

Phoenix, AZ

The Grand Canyon State

1.6M

Population

State Tax

Yes

Climate

Hot desert

Notable Facts

•Fastest growing major city
•Desert metropolis
•Spring training capital

Major Industries

TechnologyHealthcareTourismManufacturing

Houston, TX

The Lone Star State

2.3M

Population

State Tax

No Income Tax

Climate

Humid subtropical

Notable Facts

•Energy capital of the world
•NASA Mission Control
•Diverse port city

Major Industries

EnergyAerospaceHealthcareInternational Trade

Cost Breakdown by Category

Annual spending: Phoenix, AZ vs Houston, TX

Category	Phoenix, AZ	Houston, TX	Difference	Change
🏠Housing	$2,788/mo	$2,191/mo	↓ $598less	21.4%
📦Other	$1,677/mo	$1,768/mo	↑ $90.40more	5.4%
🛒Groceries	$963/mo	$911/mo	↓ $51.96less	5.4%
🚗Transportation	$1,489/mo	$1,449/mo	↓ $39.61less	2.7%
🏥Healthcare	$589/mo	$562/mo	↓ $26.64less	4.5%
⚡All Utilities	$561/mo	$552/mo	↓ $8.74less	1.6%

🏠Housing

↓ 21.4%

Phoenix, AZ

$2,788

Houston, TX

$2,191

Difference

$598

less

📦Other

↑ 5.4%

Phoenix, AZ

$1,677

Houston, TX

$1,768

Difference

$90.40

🛒Groceries

↓ 5.4%

Phoenix, AZ

$963

Houston, TX

$911

Difference

$51.96

less

🚗Transportation

↓ 2.7%

Phoenix, AZ

$1,489

Houston, TX

$1,449

Difference

$39.61

less

🏥Healthcare

↓ 4.5%

Phoenix, AZ

$589

Houston, TX

$562

Difference

$26.64

less

⚡All Utilities

↓ 1.6%

Phoenix, AZ

$561

Houston, TX

$552

Difference

$8.74

less

🏠Rent Comparison

Studio

From$1,390

To$1,220

↓ $170

1 Bed

From$1,510

To$1,260

↓ $250

2 Bed

From$1,750

To$1,500

↓ $250

3 Bed

From$2,330

To$2,020

↓ $310

Phoenix, AZZIP-level data

1BR range: $1,300–$2,380/mo

Houston, TXZIP-level data

1BR range: $880–$1,980/mo

💡 Note: Rent prices are based on HUD Fair Market Rent data and represent median costs. Actual prices vary by neighborhood, amenities, and condition. Source: HUD Small Area Fair Market Rents FY2026.

$8,068

Monthly in Phoenix, AZ

$7,434

Monthly in Houston, TX

$634

Difference

Home Values

Phoenix

Houston

$414K

Median Value

$245K

↓ -3.1%

YoY Change

↓ -3.1%

↑ +30.2%

5-Year Change

↑ +23.4%

$274K - $957K

Price Range

$138K - $1.64M

Homes in Houston are 41% less expensive than Phoenix

Calculate payment - Phoenix Calculate payment - Houston

Source: Zillow Home Value Index (ZHVI), January 2026

Tax Comparison

Annual tax burden comparison at $150.0K salary

Tax Savings

↑ $5.2K

Per year

Monthly Difference

$436

More take-home

Effective Rate Diff

3.5%

Rate difference

Phoenix, AZ

Federal Income Tax

Effective: 18.9%

$25.5K

Arizona State Tax

Effective: 3.5%

$5.2K

FICA Taxes

Social Security + Medicare

$11.5K

Total Taxes

Effective: 28.2%

$42.2K

Take-Home Pay

$8,979/month

$107.8K

Houston, TX

Federal Income Tax

Effective: 18.9%

$25.5K

Texas State Tax

No state income tax

FICA Taxes

Social Security + Medicare

$11.5K

Total Taxes

Effective: 24.7%

$37.0K

Take-Home Pay

$9,416/month

$113.0K

Additional Tax Information

Phoenix, AZ Tax Rates

Sales Tax:8.5%

Property Tax:0.6%

Houston, TX Tax Rates

Sales Tax:8.2%

Property Tax:1.8%

💡 Note: Tax calculations are estimates based on 2024/2025 tax brackets for single filers with standard deduction. Actual taxes may vary based on filing status, deductions, credits, and local variations.