Cost of Living: Houston, TX vs Newark, NJ (2026)

Houston

Texas
88
VS

Newark

New Jersey
100

Houston is 12% cheaper than Newark.

$1,313/mo ↓ 1%
Median Rent
$1,330/mo ↑ 1%
$62,894/yr ↑ 30%
Median Income
$48,416/yr ↓ 23%
$253,400 ↓ 25%
Home Value
$337,800 ↑ 33%
$1,316/mo ↓ 7%
Owner Costs
$1,419/mo ↑ 8%
2,300,419
Population
307,188

Tax Comparison

0%
Income Tax
10.75%
6.25%
State Sales Tax
6.625%
1.6%
Property Tax
2.23%

Affordability

25.1%
rent-to-income
Affordability
33.0%
rent-to-income

Detailed Comparison

When comparing Houston, TX and Newark, NJ, the overall cost of living indices are 88 and 100 respectively (national median = 100). Rent is comparable in both cities, with less than $50/month separating them.

Median household income is $14,478/year higher in Houston. Home values also differ significantly — the median in Houston is $253,400 compared to $337,800 in Newark.

Texas has no state income tax, giving Houston residents a significant tax advantage over New Jersey's 10.75% rate.

Frequently Asked Questions

Houston vs Newark — common questions

Is Houston or Newark cheaper to live in?
Based on our cost index, Houston is cheaper to live in with an index of 88 compared to 100 (US average = 100).
What is the rent difference between Houston and Newark?
Median rent in Houston is $1,313/month and in Newark it's $1,330/month — a difference of $17/month.
Which city has higher income, Houston or Newark?
Median household income is $62,894 in Houston and $48,416 in Newark. Median household income is $14,478/year higher in Houston.
How do taxes compare between Texas and New Jersey?
Texas has 0% income tax, 6.25% sales tax, and 1.6% property tax. New Jersey has 10.75% income tax, 6.625% sales tax, and 2.23% property tax.
Should I move to Houston or Newark?
It depends on your priorities. Houston has a cost index of 88 with median rent of $1,313/mo, while Newark has a cost index of 100 with rent of $1,330/mo. Consider income potential, tax burden, and lifestyle preferences alongside raw cost data.
View Houston details → View Newark details →

More Comparisons

Other cost of living comparisons for Houston and Newark

Houston vs. Chicago Houston vs. Phoenix Houston vs. Los Angeles Houston vs. Philadelphia Houston vs. New York Houston vs. San Antonio Newark vs. St. Paul Newark vs. Pittsburgh Newark vs. Irvine Newark vs. Greensboro Newark vs. Cincinnati Newark vs. St. Louis