Why is the cost of living in Houston, TX so cheap? Is there a catch?

Answer 1

Maperoute has a good point, expensive vrs. Cheap is relative.

To answer your question though, the reason Houston is cheaper than the rest of the country is we have lower taxes, smaller government, less regulation and Texas is a right to work state so there aren't unions getting in the way to drive up prices.Houston is cheap because we are a very conservative city in a very conservative state, we don't like big government and that helps keep costs down for everybody.

Most people wonder why things are so expensive and curse nasty buisnessmen. This is called ignorance. They don't understand how much of the costs they pay for things are driven up by government action.

Houston though is a very conservative town. We don't even have zoning. That is a good example. Most people are shocked when they find out we don't have zoning. They are also shocked to see that our housing prices are literally about 1/2 of what they are in the big cities back east or on the left coast. They don't always understand that there is a connection.

When you zone land for one use, you prohibit it from being used for other uses. This restricts the supply of available land for any particular use, and everyone who passed 6th grade Civics Class should know that restricting supply increases price. (This is why it was the big developers that were pushing for zoning back during the last election we had on the issue.)

Compare this to a place like California, that has tons of regulations on what you can and can not do with your property. Think of all the earthquake safety regulations, there are zoning laws, there are air quality management boards, coastal polution boards, noise pollution rules, there are non-discriminatory housing regulations, there are arcitecture and planning rules, there historic community rules, etc. etc. etc. All those rules cost money. They have direct costs in terms of fees and taxes, they also have indirect costs in that they take time to comply with and enforce, and when you have people working for you time is money, and they also add to the costs by restricting supply. ALL these costs will get passed on to the consumer in one way or another, which is a big part of why things cost more in New York and California.

Most people don't think about this sort of thing, but the costs are still there, and over time the cost of these things really adds up.

So the reason things are cheap here in Houston is that we don't have a lot of government getting in the way and driving up the prices.

Answer 2

Um yeah, they're called hurricanes and floods, so you have to factor in flood insurance. Right now it is cheap to live anywhere in Texas except Dallas- which still isn't too bad. But you will find that, like everywhere, wages in the area fit the cost of living.

Make sure you are looking at housing in lower crime rate areas too..Houston is the third largest city in the United States, so there is lot of ghetto. And thanks to Hurricane Katrina, and the relocation of many many people, the crime rate there has sky-rocketed. (It sounds mean, but those are the facts- you can ask anyone there.)

Driving in Houston is a PAIN- again large city- so prepare for a good two hours to get to work if you work within the city.

You might want to stick with the cities surrounding Houston- like Katy, Sugar Land, and Spring.

Houston is close to the coast, and the coast is where all of the oil plants are- so lots of smog and the beach is.. well... murky.

We lived in Huntsville and took frequent trips to Houston and the Woodlands. They have great fine arts and restaurants. There is always something to do, and I like the people there. I also like their airports much, MUCH more than DFW. Right now I am giving you the lows of Houston- but I really did like it there.

Answer 3

The catch is that it isn't cheap for many people originally from this state. Harris County has just about the highest tax rates in the state. Then there are MUD taxes, state sales taxes, community association fees. Many jobs can't afford you the 'good' life. Yes, you make a living but every year the taxes go up and many jobs don't even pay cost of living increases. House prices a real bargain to out of staters but to local raised - to buy in a safe neighborhood that you don't have to commute 2/3hrs a day is a struggle. Add gas prices. Truly amazing that some midwestern states have cheaper gas then we do right next to the refineries. And then try to afford to move out of state... Yes, too cheap.

Answer 4

Compared to any city on the East Coast living in Houston will feel like a dream world where everything is free. Though if you live the the country of Maryland it'll probably be more expensive.

Answer 5

I have lived in the Houston area all my life. Some of what is said here is true, but alot of it is true of all big cities. I really didn't get the one about "lack of green spaces" though. The only part of the city that doesn't have green spaces is downtown. One thing you have to remember though, salaries are partly based on cost of living. So if you have the same job in CA, you will probably be paid more in Houston.

Answer 6

It's quality of life doesn't seem to great. Lot's of pollution. Very spread out and decentralized. High crime, low wages, horrible weather. It's just a big, sprawling, dirty, humid metropolitan area. And for all the people claiming it's the mexicans that make it so cheap, well then why the hell is CA so damn expensive to live in? Plenty more mexicans there.

Answer 7

Houston is booming. Katy area is high to live in. The rest of Houston is reasonable.

Answer 8

Texas is developing state and government wants to develope it. yesterday i saw a tv advertisement in which they were selling empty plots at cheap rates and giving a free weekend to visit their site in Texas which includes round trip air fair for two , hotel .......
In this way they are encoursging people to live there so that Texas can be developed. So is the cost of living cheap.

Answer 9

Heat
Humidity
Poor Public Transportation
Lack of green spaces
Floods
Hurricanes
Bugs

Answer 10

Very few people would want to live there otherwise. It's just a huge, industrial city, with bad pollution.