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Houston vs Phoenix: cost of living, pay and jobs compared
Houston is the cheaper place to live: overall prices run 5% lower than in Phoenix, and housing runs 16% lower. Phoenix pays more in dollars (a typical official wage of $51,500 against $49,500), and after local prices are counted the typical paycheck goes further in Houston ($50,000 against $49,500 in average-US dollars).
The short answer
- Prices: Houston runs 5% lower than Phoenix overall, and housing runs 14% lower.
- To keep the buying power of $100,000 in Phoenix, you need about $95,500 in Houston. To keep $100,000 from Houston, you need about $105,000 in Phoenix.
- Official median wage for all jobs: $49,500 in Houston, $51,500 in Phoenix.
- Median pay listed in open postings: $127,500 in Houston, $117,500 in Phoenix.
- Open postings in our data: 2,480 in Houston from 484 employers, 2,893 in Phoenix from 443 employers.
- Unemployment: 5% in Houston, 4.9% in Phoenix (BLS).
Houston and Phoenix side by side
| Measure | Houston | Phoenix | Edge |
|---|---|---|---|
| Overall price level (US = 100) | 98.6 | 103.3 | Houston |
| Housing price level | 104.5 | 121.2 | Houston |
| Official median wage, all jobs | $49,500 | $51,500 | Phoenix |
| Paycheck power (wage adjusted for prices) | $50,000 | $49,500 | About the same |
| Median pay in open postings | $127,500 | $117,500 | Houston |
| Postings that list pay | 17.5% | 20.5% | Phoenix |
| Open postings in our data | 2,480 | 2,893 | – |
| Employers hiring in our data | 484 | 443 | – |
| Unemployment rate (BLS) | 5% | 4.9% | About the same |
| Postings open more than 60 days | 32.6% | 32.6% | About the same |
| Median days a posting has been open | 30 | 30 | About the same |
| Entry-level share of postings | 13.1% | 11.6% | – |
| Remote share of postings | 4.7% | 3% | – |
| Indeed postings index vs Feb 2020 | +15.6% | +12.8% | Houston |
"Edge" shows which area looks better on that measure (lower prices, higher pay, lower unemployment, fewer stale postings); counts and shares have no edge. Within 2% counts as about the same.
Cost of living
Houston prices sit 98.6 against a US average of 100 and Phoenix at 103.3. The biggest difference is housing: 104.5 in Houston against 121.2 in Phoenix. Utilities are 2% higher in Houston. The index covers goods and services including rent and home costs, so it measures what a typical household spends, not what your own budget looks like.
| Price level (US = 100) | Houston | Phoenix | Houston vs Phoenix |
|---|---|---|---|
| All items | 98.6 | 103.3 | 5% lower |
| Housing | 104.5 | 121.2 | 14% lower |
| Goods | 100.6 | 95 | 6% higher |
| Utilities | 95.3 | 93.3 | 2% higher |
| Other services | 95.6 | 104 | 8% lower |
What a salary is worth in each place
Each row keeps your purchasing power the same. The left half moves a salary from Phoenix to Houston; the right half moves it the other way. "If only housing moved" uses the housing price level alone, for someone whose biggest cost is rent or a mortgage.
| Salary in Phoenix | Matching salary in Houston | If only housing moved | Salary in Houston | Matching salary in Phoenix | If only housing moved |
|---|---|---|---|---|---|
| $50,000 | $47,500 | $43,000 | $50,000 | $52,500 | $58,000 |
| $75,000 | $71,500 | $64,500 | $75,000 | $78,500 | $87,000 |
| $100,000 | $95,500 | $86,000 | $100,000 | $105,000 | $116,000 |
| $125,000 | $119,500 | $108,000 | $125,000 | $131,000 | $145,000 |
| $150,000 | $143,000 | $129,500 | $150,000 | $157,000 | $174,000 |
| $200,000 | $191,000 | $172,500 | $200,000 | $209,500 | $232,000 |
As hourly pay (2,080 hours a year): $100,000 a year is about $48.10 an hour; the matching figure is about $45.90 an hour in Houston for someone earning $100,000 in Phoenix.
Pay for the same job
Across the 57 occupations that the Bureau of Labor Statistics measures in both areas, the median wage is higher in Houston for 19 and higher in Phoenix for 38. After local prices are counted, Houston comes out ahead in 33 and Phoenix in 24. The widest gap among the 15 largest occupations is waiters and waitresses: $22,100 in Houston against $47,500 in Phoenix.
| Occupation (15 largest) | Houston median | Phoenix median | Houston adjusted for prices | Phoenix adjusted for prices |
|---|---|---|---|---|
| General and Operations Managers | $119,600 | $98,600 | $121,300 | $95,400 |
| Fast Food and Counter Workers | $27,600 | $34,500 | $28,000 | $33,400 |
| Retail Salespersons | $31,300 | $36,000 | $31,800 | $34,800 |
| Customer Service Representatives | $40,400 | $46,400 | $40,900 | $44,900 |
| Home Health and Personal Care Aides | $23,400 | $36,900 | $23,800 | $35,700 |
| Registered Nurses | $99,800 | $100,800 | $101,200 | $97,600 |
| Stockers and Order Fillers | $36,900 | $37,700 | $37,400 | $36,500 |
| Laborers and Freight, Stock, and Material Movers, Hand | $38,000 | $45,000 | $38,500 | $43,500 |
| Cashiers | $29,400 | $34,900 | $29,800 | $33,800 |
| Waiters and Waitresses | $22,100 | $47,500 | $22,400 | $46,000 |
| Office Clerks, General | $40,400 | $47,700 | $40,900 | $46,100 |
| Heavy and Tractor-Trailer Truck Drivers | $56,800 | $59,800 | $57,600 | $57,900 |
| Janitors and Cleaners, Except Maids and Housekeeping Cleaners | $30,700 | $36,300 | $31,100 | $35,100 |
| Construction Laborers | $41,400 | $46,900 | $41,900 | $45,400 |
| First-Line Supervisors of Office and Administrative Support Workers | $66,000 | $65,500 | $66,900 | $63,400 |
Median annual wage for everyone in the occupation, all employers, May 2025 (BLS). "Adjusted" divides the wage by the area's price level (BEA, US = 100), so dollars are comparable.
Pay employers are offering right now
The wages above are what people earn in jobs they already hold. Open postings show what employers are offering today. In the job families where both areas have at least 15 postings that list pay, the median listed salary is higher in Houston for 4 of 4 and higher in Phoenix for 0. Posted pay tends to run above the all-worker median because it leans toward hiring for experienced roles at larger employers.
| Job family | Houston median listed pay | Postings | Phoenix median listed pay | Postings |
|---|---|---|---|---|
| Sales | $124,500 | 63 | $111,000 | 57 |
| Operations and logistics | $120,500 | 15 | $107,500 | 36 |
| Legal and compliance | $210,000 | 30 | $152,500 | 17 |
| Nursing and clinical care | $141,500 | 16 | $123,500 | 19 |
Only postings that list a salary are counted. Median of the middle of each listed range. Job families need at least 15 such postings in both areas to appear.
Who is hiring
Houston's postings lean toward healthcare & life sciences (16.4%), while Phoenix's lean toward software & technology (19.1%). The mix matters because pay and hiring conditions differ a lot by industry.
- Largest posters in Houston: Greystar (68), Tamus (61), Boxlunch (60), Careers Obmc (51), Floor & Decor (40).
- Largest posters in Phoenix: Carvana (155), Axon (96), Lucid Motors (86), Intel (81), Marketechinternationalcorporationusa (77).
Counts are open postings on each employer's own career page in our data; one big employer can shape a local market.
The job market
- Postings have been open a median of 30 days in Houston and 30 in Phoenix; 32.6% and 32.6% have been open more than 60 days.
- Entry-level roles are 13.1% of postings in Houston and 11.6% in Phoenix; senior and above are 30.4% and 34%.
- Fully remote roles are 4.7% of postings in Houston and 3% in Phoenix.
- Indeed's postings index sits 15.6% above its February 2020 level in Houston and 12.8% above in Phoenix.
- 17.5% of postings in Houston list pay, against 20.5% in Phoenix.
Which is better for you?
- If you can keep your current salary and move, the place with the lower price level (Houston) stretches it further: $100,000 in Phoenix has the buying power of about $95,500 in Houston.
- If you will be paid the local going rate, Houston comes out ahead after prices on the typical wage ($50,000 against $49,500).
- If housing is your biggest cost, the gap there (104.5 vs 121.2) matters more than the overall index.
No place is better for everyone. Taxes, commute, schools, climate and your own spending are not in these numbers.
Questions
Is it cheaper to live in Houston or Phoenix?
Houston is cheaper. Overall prices run 5% lower than in Phoenix, and housing runs 16% lower (BEA regional price parities, 2024, where the US average is 100).
How much do I need to earn in Houston to match $100,000 in Phoenix?
About $95,500 a year, using the ratio of overall price levels (98.6 in Houston, 103.3 in Phoenix). Prices only; taxes are not included.
Which city pays more, Houston or Phoenix?
Phoenix has the higher typical wage across all jobs: $51,500 against $49,500 (BLS, May 2025). After local prices, Houston has the higher paycheck power: $50,000 against $49,500 in average-US dollars.
Which has more job openings?
In the postings we read from employers' own career pages, Phoenix has more: 2,893 against 2,480. This is a sample of employer postings, not a census of every job.
Where do these numbers come from?
Prices come from the Bureau of Economic Analysis, wages and unemployment from the Bureau of Labor Statistics, and postings from employers' own career pages, collected October 2026. Every figure on this page is in a table or chart above.
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Updated October 2026. Prices only: taxes and personal spending are not included. Price levels: Bureau of Economic Analysis regional price parities, 2024. Wages and unemployment: Bureau of Labor Statistics (wages May 2025). Postings: employers' own career pages, October 2026. Methodology