CostIndexUSA

Houston, TX vs Tempe, AZ Cost of Living

Data: BEA Regional Price Parities · Census ACS · 2024

More AffordableTX
Houston
98.6
overall index
$1,600/mo rent
AZ
Tempe
103.3
overall index
$1,725/mo rent

Houston is slightly cheaper than Tempe — 4.8% lower overall cost of living.

To match an $80,000 salary in Houston, you would need $83,800 in Tempe. Calculate your salary ↓

Category Breakdown

Index values: 100 = U.S. national average. Higher = more expensive.

🏠 Housing+16.0%
Houston
104.5
Tempe
121.2
🛒 Groceries5.6%
Houston
100.6
Tempe
95
🚗 Transportation+8.8%
Houston
100.4
Tempe
109.2
🏥 Healthcare+8.8%
Houston
90.8
Tempe
98.8
Utilities2.1%
Houston
95.3
Tempe
93.3

Salary Equivalency Calculator

Enter your current salary in Houston to see what you'd need to earn in Tempe to maintain the same purchasing power.

$
Equivalent salary in Tempe, AZ
$83,800
$3,800 more needed in Tempe

Formula: salary × (103.3 ÷ 98.6) = salary × 1.0477. Based on BEA Regional Price Parities.

Housing Market

Houston, TX

Median Home Price
$302,000
Median Monthly Rent
$1,600
Housing Index
104.5
Price-to-Rent Ratio
15.7×

Tempe, AZ

Median Home Price
$442,000
Median Monthly Rent
$1,725
Housing Index
121.2
Price-to-Rent Ratio
21.4×

Tempe has 16.0% higher housing costs compared to Houston.

Income & Job Market

Houston, TX

Median Household Income
$79,500
Per Capita Income
$45,300
Unemployment Rate
5.2%
Population
2,304,580
Top Industries
EnergyHealthcareAerospaceManufacturingLogistics

Tempe, AZ

Median Household Income
$85,700
Per Capita Income
$48,800
Unemployment Rate
3.8%
Population
185,038
Top Industries
TechnologyEducationHealthcareRetailFinance

Affordability at a Glance

Income-to-rent ratio: higher is better (more income relative to housing costs).

Houston, TX
4.1×income-to-rent ratio

76% of income left after rent (median)

Tempe, AZ
4.1×income-to-rent ratio

76% of income left after rent (median)

Data Sources: Bureau of Economic Analysis (BEA) Regional Price Parities 2024; U.S. Census Bureau American Community Survey (ACS); Bureau of Labor Statistics (BLS) Local Area Unemployment Statistics; Zillow Research.

Cost indices use 100 as the U.S. national average. Values above 100 indicate costs above the national average. Data is updated annually.

This data is for informational purposes only and should not be used as the sole basis for relocation or financial decisions.