Side-by-side cost of living comparison for 2026
9% cheaper
Birmingham is 9% more affordable than Houston. A $75,000 salary in Houston is equivalent to $67,969 in Birmingham.
Index values shown. National average = 100. Lower is cheaper.
To maintain the same standard of living:
See exact take-home pay: Alabama salaries · Texas salaries
Housing is typically the biggest factor in any cost-of-living comparison. Birmingham has a housing index of 67 while Houston sits at 89 (national average = 100). The median home in Birmingham costs $165,000 compared to $250,000 in Houston, a difference of $85,000. Monthly rent follows a similar pattern: $1,000 in Birmingham versus $1,400 in Houston.
Groceries and everyday expenses show a narrower gap: Birmingham scores 96 while Houston scores 94.
Healthcare costs in Birmingham (91) are lower than Houston (96).
Median household income in Birmingham is $38,178 compared to $52,338 in Houston. When adjusted for cost of living, income goes further in Birmingham.
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