Houston vs Tempe

Category-by-Category Breakdown

Index values shown. National average = 100. Lower is cheaper.

💰 Salary Equivalence

To maintain the same standard of living:

See exact take-home pay: Texas salaries · Arizona salaries

Living in Houston vs Tempe

Housing is typically the biggest factor in any cost-of-living comparison. Houston has a housing index of 89 while Tempe sits at 114 (national average = 100). The median home in Houston costs $250,000 compared to $400,000 in Tempe, a difference of $150,000. Monthly rent follows a similar pattern: $1,400 in Houston versus $1,600 in Tempe.

Groceries and everyday expenses show a notable difference: Houston scores 94 while Tempe scores 100.

Healthcare costs in Houston (96) are higher than Tempe (95). Both are close to the national average.

Median household income in Houston is $52,338 compared to $56,068 in Tempe. When adjusted for cost of living, income goes further in Houston.

Relocating: Houston vs Tempe

If you are considering a move between Houston (index: 96) and Tempe (index: 106), the 9% cost difference has real implications for your budget. Houston is the more affordable option, but the right choice depends on your income, career opportunities, and lifestyle priorities.

Housing budget reality: Using the 28% rule (spending no more than 28% of gross income on housing), the median household in Houston can afford $1,221/month, while the median household in Tempe can afford $1,308/month. With median homes at $250,000 in Houston versus $400,000 in Tempe, homeownership requires above-median income in the pricier market.

Renting vs buying: At $1,400/month in Houston and $1,600/month in Tempe, renters face similar costs in both cities. The rent-to-own ratio in each city determines whether renting or buying offers better value for your situation.

Income adjustment: A $75,000 salary goes further in Houston where costs are 4% below the national average. Before accepting a job in either city, use the salary equivalence data above to understand what you would need to earn to maintain your current standard of living.

Reading These Numbers: Houston (96) vs Tempe (106)

The cost of living index uses 100 as the national average. Houston at 96 is 4% below the US average, while Tempe at 106 is 6% above average. Both cities are close to the national average in overall costs.

A 10-point index spread separates Tempe from Houston, a moderate gap that adds up across monthly bills but is manageable with a typical dual-income household budget. The biggest category divergence is housing, where Houston scores 89 and Tempe scores 114. That 25-point gap is the primary driver of the overall cost difference between these two metros. Housing, the largest line item for most households, favors Houston with indices of 89 versus 114. Median home prices of $250,000 in Houston and $400,000 in Tempe underscore this gap. Neither city is cheaper across the board: Houston has an edge in housing and groceries, while Tempe is more affordable for utilities and transportation. Your actual savings depend on which categories consume the biggest share of your personal budget.

For renters: With median rents of $1,400/month in Houston and $1,600/month in Tempe, the annual rent difference is approximately $2,400. Over a 5-year period, that compounds to $12,000 in savings by choosing the more affordable city.

For homebuyers: The $150,000 difference in median home prices between Houston and Tempe translates to roughly $9,000 per month in mortgage payments at current rates. Factor this into your budget alongside property taxes and insurance, which also vary by location.

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