Cost of Living: Houston, TX vs Phoenix, AZ 2026

$1,313/mo ↓ 10%

Median Rent

$1,458/mo ↑ 11%

$62,894/yr ↓ 18%

Median Income

$77,041/yr ↑ 22%

$253,400 ↓ 34%

Home Value

$381,900 ↑ 51%

$1,316/mo ↓ 8%

Owner Costs

$1,430/mo ↑ 9%

2,300,419

Population

1,624,832

Detailed Comparison

When comparing Houston, TX and Phoenix, AZ, the overall cost of living indices are 88 and 109 respectively (national median = 100). Rent is $145/month cheaper in Houston, saving renters about $1,740/year.

Median household income is $14,147/year higher in Phoenix. Home values also differ significantly — the median in Houston is $253,400 compared to $381,900 in Phoenix.

Texas has no state income tax, giving Houston residents a significant tax advantage over Arizona's 2.5% rate.

Frequently Asked Questions

Houston vs Phoenix — common questions

Is Houston or Phoenix cheaper to live in?

Based on our cost index, Houston is cheaper to live in with an index of 88 compared to 109 (US average = 100).

What is the rent difference between Houston and Phoenix?

Median rent in Houston is $1,313/month and in Phoenix it's $1,458/month — a difference of $145/month.

Which city has higher income, Houston or Phoenix?

Median household income is $62,894 in Houston and $77,041 in Phoenix. Median household income is $14,147/year higher in Phoenix.

How do taxes compare between Texas and Arizona?

Texas has 0% income tax, 6.25% sales tax, and 1.6% property tax. Arizona has 2.5% income tax, 5.6% sales tax, and 0.62% property tax.

Should I move to Houston or Phoenix?

It depends on your priorities. Houston has a cost index of 88 with median rent of $1,313/mo, while Phoenix has a cost index of 109 with rent of $1,458/mo. Consider income potential, tax burden, and lifestyle preferences alongside raw cost data.

Cost of Living: Houston, TX vs Phoenix, AZ (2026)

Houston

Phoenix

Tax Comparison

Affordability

Detailed Comparison

Frequently Asked Questions