The cost of living index varies from city to city for various economic, social, and sometimes political reasons.
Knowing the different living costs in Dallas and Houston will help you decide which cities you prefer to relocate to.
Based on statistical records and studies, we have curated a comprehensive comparison of Dallas vs. Houston’s various cost of living indices.
At the end of this article, you should be armed with the information to help you decide what city you wish to relocate to, between Dallas and Houston.
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Cost of Living in Dallas vs. Houston
The cost of living in Dallas vs. Houston is determined by factors that include:
- Housing costs
- Food costs
- Utility costs
- Healthcare costs
Cost of Housing In Dallas
Experts say the Dallas-Fort Worth metroplex ranked sixth most competitive housing market in the United States in 2021.
The average cost of housing in Dallas is above the national average by 15.9 percent.
The housing market in Dallas is so competitive that properties do not stay vacant for too long.
This is because Dallas is an interesting city to pitch home to and build a life in. I Why is it called the city that never sleeps?
The most expensive places to live in Dallas include:
- Knox Henderson.
- East Dallas.
- Main Street District
- Vickery Place Avenue.
To secure a one-bedroom apartment home in any of these neighborhoods, you should pay from $2,000 to $2,500 monthly rent.
As we said earlier, these neighborhoods are the most expensive to live in Dallas.
These neighborhoods are worth every cent of your money and have a good walkability factor, great restaurant options, and virtually everything you need to be comfortable.
But no law states that you must live in these areas.
You can decide to reside in places like
- Highland Hills.
- Southeast Dallas.
- Riverway Estates.
A one-bedroom apartment home in these neighborhoods costs less than $800.
Available amenities in the home are responsible for the difference in housing cost in these areas.
If you also want to buy a house, Dallas is a great place.
Although the Dallas home market prices shot up by 17.1 percent last year, the current home sale price is between $410,000 and $353,000.
Cost of Housing in Houston
Housing in Houston neighborhoods costs 18.6 percent lower than the national average.
Renting a house in Houston is affordable as long as you have a good income.
The average rent for a one-bedroom home in Houston is $1,264, only 16 percent above the local average as of last year.
Studio apartments cost a little more than a standard one-bedroom apartment for $1,375.
However, rent varies in Houston depending on which neighborhood you prefer to live in.
Of course, fancy apartments in fancy neighborhoods will cost more than regular apartments in common areas.
Food Costs in Dallas
The cost of living in relation to the cost of food in Dallas is above the national average.
Despite the above-national average cost of food, it is still possible to feed properly without breaking the bank.
In addition, you can make up for dining out at fancy rooftop restaurants with healthy home-cooked meals prepared by you for yourself.
Grocery purchases at supermarkets have costs that include: ground beef at $4.42, a half-gallon of milk at $1.97, and a dozen of eggs at $1.15.
Weekends in Dallas feature farmers’ markets, specialty grocery stores, and low-cost grocery stores for everyday essentials.
A major benefit of living in Dallas is your access to endless meal options. Dallas allows you to find the meal that fits your budget.
When you live in Dallas, you are guaranteed access to casual eateries, mid-priced options, and five-star restaurants with professional chefs at your fingertips.
Cost of Food in Houston
The cost of living in Houston in terms of food is cheaper than in most parts of the United States.
The cost of food is estimated to be 4 percent lower than the national average.
In Houston, you can purchase a dozen Grade A eggs for $1.55, a good-sized whole wheat bread at $3.62, and a pound of ground beef at $4.14.
However, the price of certain essential grocery items like baby food costs higher in Houston than in other cities in the US.
Milk is another example of a high-price essential grocery item costing higher in Houston.
A half-gallon of milk in Houston costs around $2.04, while it costs just $1.98 in Austin.
Houston locals have the highest statistic for eating out in the world. This is because those who live in Houston find it more appealing to buy food in restaurants
Utility Costs in Dallas
Utility costs generally depend on usage rates everywhere in the world.
However, this price runs 8 percent above the national average in Dallas. This is because Dallas experiences one of the hottest summers.
A monthly energy bill in Dallas is about $200, higher than the utility cost of New York, Atlanta, and even Los Angeles.
You’ve got to stay cool through the summer in Dallas, so as you prepare to move to Dallas, get ready to crank up that A/C.
The monthly phone bill costs $185, the internet costs $45, and water bills a little below $100.
Remember, Dallas experiences hot temperatures, so the water usage is higher in Dallas, keeping the cost of water in Dallas higher than the national average.
Utility Costs in Houston
The cost of a utility in Houston is the only cost of living factor higher than the national average.
This is because of the hotness of Houston in Summer.
Residents of Houston pay an average of $194 per month on energy utility. The Houston energy utility cost is 7.4 percent higher than the national average.
A monthly energy bill in Houston is about $194, a price higher than the utility cost of New York, Atlanta, and even Los Angeles.
You’ve got to stay cool through the summer in Houston, so as you prepare to move to Houston, get ready to crank up that A/C.
The monthly phone bill costs $175, the internet costs $45, and water bills a little below $100.
Remember, Houston experiences hot temperatures, so the water usage is higher in Houston, keeping the cost of water in Dallas higher than the national average.
Healthcare Costs in Dallas
Every individual has unique healthcare requirements, so it’s almost impossible to calculate the average total cost of Healthcare in Dallas.
Dallas boasts elite healthcare providers, services, hospitals, and facilities. So, whether you need a general family doctor, an emergency, or special medical attention, Dallas has got you covered.
Medical City is a leading healthcare provider in Dallas. Medical City is also one of the largest medical centers in Dallas, with 16 hospitals employing over 17,000 employees.
Healthcare cost in Dallas is a little on the high side, consuming an income level 13.8 percent higher than the national average.
For example, a visit to a doctor’s office will cost about $121 and a dentist’s checkup costs $134 and seeing an optometrist is $98.
Healthcare Costs in Houston
Healthcare costs in Houston are 3.6 percent cheaper than the rest of the nation, despite having some of the best medical facilities in the world.
Houston hospitals score high on U.S. News & World Reports about Best Hospitals and Medical Specialties list.
Every individual has unique healthcare requirements, so it’s almost impossible to calculate the average total cost of Healthcare in Houston.
However, a visit to the doctor costs about $92, while an optometrist appointment costs just under $100, and a dentist visit just over $107.
Pets also need to be taken care of, but the good news is that in Houston, pet care is also cheap.
Therefore, a typical visit to the veterinary clinic should run just about $54.
Taxes in Dallas
In Dallas, you’ll have no state income tax munching away a large portion of your paycheck.
However, you may use some of that enormous take-home pay on property taxes if you’re a homeowner.
Dallas has the seventh-highest property tax rate in the nation.
Dallas does have a state sales tax, which is 6.25 percent. However, taxes like county or city can bring that up to 8.25 percent.
Taxes in Houston
Houston has no state or local personal income tax.
This means that you do not need to pay taxes at a state level for Social Security benefits, pensions, 401(k)s, or any other type of retirement income.
This policy is beneficial in that it helps you save money which can be used to offset the high property taxes.
However, you do not need to worry about property tax if you rent your current apartment.
Houston’s sales tax is at 6.25 percent, but total sales taxes, including county and city taxes, are 8.25 percent.
So, if you spend $100 in Dallas, you will pay $8.25 in sales tax.
Dallas also offers its residents three Texas tax-free weekends where the state and local taxes get waived.
You have come to the end of our Dallas Vs. Houston comparison for the cost of living.
These cities offer a lot in terms of standard of living, fun, and entertainment, but at a cost.
We have discussed these costs in this article in the clearest form possible.
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