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Houston ranked among the most affordable major U.S. cities for workers earning six figures, according to a 2024 GOBankingRates analysis. The Houston cost of living allowed an estimated $34,983.54 to remain after taxes and essential expenses.
The personal finance website compared how far a $100,000 salary stretched across the country’s 50 largest cities. Houston placed seventh for income remaining after expenses.
Houston Cost of Living Leaves Nearly $35,000
GOBankingRates estimated that a Houston worker earning $100,000 would retain $78,089 after taxes. Average annual expenses totaled $43,105.46, leaving nearly $35,000 for savings, debt payments and other financial priorities.
Housing represented a major part of the calculation. The analysis estimated annual rent in Houston at approximately $19,216.
Other expenses included groceries, healthcare, utilities, transportation and miscellaneous purchases. Together, those categories showed how routine costs can affect the value of the same salary in different cities.
The calculation represents a general estimate rather than a personal budget. Actual spending can vary based on household size, neighborhood, housing choices, insurance costs and outstanding debt.
Texas Cities Perform Well in National Ranking
Houston was one of three Texas cities near the top of the affordability list. El Paso placed second, while San Antonio ranked third.
A worker earning $100,000 in El Paso would have an estimated $37,685 remaining after taxes and expenses. The comparable figure for San Antonio was $37,081.
Memphis claimed the top position. The study projected that a Memphis resident earning $100,000 would retain $39,397 after essential expenses.
The results placed Texas in a strong position among states with affordable large cities. The absence of a state individual income tax also affects take-home pay, although residents still face sales, property and other taxes.
New York and San Francisco Finish Last
The financial picture changed sharply in several coastal cities. New York ranked as the most expensive city for people earning $100,000.
According to the analysis, an average New York resident would face a $6,209 shortfall after taxes and estimated expenses. San Francisco also produced a negative balance, with annual costs exceeding available income by $1,342.
Those results illustrate how rent and other local expenses can reduce the practical value of a six-figure salary. A $100,000 income does not provide the same purchasing power in every market.
How the Study Calculated Expenses
GOBankingRates examined population, taxes, rent and basic living expenses to create its rankings. Its analysis drew population information from the U.S. Census Bureau’s American Community Survey.
The study also used spending information from the Bureau of Labor Statistics Consumer Expenditure Surveys. The federal program collects information about household income, demographics and spending habits.
Cost indexes helped estimate local spending on groceries, healthcare, utilities, transportation and miscellaneous needs. Rental expenses were added to determine each city’s total annual costs.
The findings offer a useful comparison, but they reflect the data and assumptions used at the time. Prices, taxes and individual circumstances can change the amount a household retains.
For Houston residents and workers considering a move, the ranking highlights the city’s relative affordability among major metropolitan areas. Comparing current housing, transportation and insurance costs remains essential when building a household budget.