A+
4%
Overall NAT. AVG.
1%
Goods & Services NAT. AVG.
15%
Housing NAT. AVG.
Search Homes for Sale
Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.
The cost of living index is based on a national average of 100. For example, if the cost of living is 90, then it is 10% lower than average. If the cost of living is 110, then it is 10% higher than average. The breakdown for each index is as follows: goods & services (33%), groceries (13%), health care (5%), housing (30%), transportation (9%) and utilities (10%). If the cost of living data was unavailable for this city, estimates based upon nearby cities were used.
Index Katy Texas National
Cost of living10492100
Goods & Services10196100
Groceries10096100
Health care9494100
Housing11583100
Transportation9092100
Utilities103104100

An Overview of Cost of Living in Katy, TX

Knowing the cost of living in Katy allows individuals to create a realistic budget. This helps them understand how their income will cover expenses and whether they need to make financial adjustments. The cost of living in any region can fluctuate due to various factors. To assess the cost of living consistently across different areas, a national average of 100 serves as the basis for the cost of living index. The cost of living in Katy stands at 104, marking it 4% higher than the national average.

The cost of living in Katy is about average when compared to all other cities across the nation. You can expect that everyday items like food, goods and services and utility bills will be no more expensive than any other average city. Residents can anticipate living expenses that remain in line with the national average, ensuring a manageable financial burden, making it an attractive choice for those seeking affordability without the constraints of higher everyday expenditures.

Is Katy Affordable?

Is Katy an affordable place to live? That's a valid question to ask when you're thinking about moving to a new city. After all, how much it costs to live somewhere can be a huge factor in your decision. Affordability can be broken down into 3 common categories. The cost of living index (we talked about it earlier), housing expenses and income levels all play a big role in figuring out if a place is affordable. For instance, in Katy, the median home price is 13% higher than what most folks pay across the country, and monthly rent prices are 20.9% higher than the usual rates. Income levels in Katy come in at $87,179, which is 57.6% higher than the national average.

What Factors can Influence the Cost of Living in Katy?

Urbanization: Larger, urban areas boasting abundant amenities and robust employment prospects often exhibit a heightened cost of living, driven by the increased demand for services and residential relocation. Consequently, this leads to elevated home prices and higher rental rates. In contrast, sparsely populated rural locales or regions marked by diminished demand typically offer a more limited range of amenities and experience slower job market expansion. This translates into a more affordable cost of living.

Healthcare: Healthcare costs and insurance premiums can fluctuate greatly based on the city or state. Access to healthcare facilities, out-of-pocket expenses for doctor\’s visits, dentist costs, medication costs and specialized care costs can all impact the cost of living. In Katy, the healthcare costs are 6.1% lower than the national average.

Transportation: In cities with limited or no public transportation, residents may find it necessary to own and maintain vehicles, thereby elevating the cost of living. Monthly expenditures include fuel, insurance, routine maintenance and potential lease or financing commitments. In Katy, the transportation index stands at 9.6% lower than the national average.

Where is the Data From?

The Katy cost of living data displayed above is derived from the C2ER cost of living index to provide a useful and reasonably accurate measure of living cost differences in urban areas. Published on a quarterly basis, it compiles data from more than 300 independent researchers, encompassing over 60 goods and services. These items have been meticulously selected to represent various consumer expenditure categories, in 6 categories. Weightings assigned to cost differentials draw from government survey data tracking spending patterns among professional and executive households. While the C2ER index excludes data on sales or income tax rates, AreaVibes incorporates tax rates into the overall cost of living score for each region.

New Real Estate Listings in Katy Area
Search Homes for Sale in Katy, TX

Cost Of Living Quick Facts

  • The cost of living in Katy is 12% higher than the Texas average
  • The cost of living in Katy is 4% higher than the national average
  • Katy housing is 15% higher than the national average
  • Texas general sales tax is 22% higher than the national average
  • Texas state income tax is 100% lower than the national average

Most Affordable Places to Live in and Around Katy

See all the best places to live around Katy

Compare Katy, TX Cost of Living

      vs
      How would you rate the cost of living in Katy?
      Write a review to give others more information about this area.
      Is the cost of living increasing or decreasing in Katy?
      Write a review to give others more information about this area.
      See all Katy poll results

      Salary Calculator

      This is how much you would need to earn in
      Price difference in compared to
      Cost of living index
      Goods & Services index
      Groceries index
      Health care index
      Housing index
      Transportation index
      Utilities index

      Median Income & Debt-To-Income Ratio

      Median Income Per Year Per Month Max Budget (28% DTI) Max Budget (36% DTI)
      Owners$111,964$9,330$2,612$3,359
      Renters$46,318$3,860$1,081$1,390
      A good indicator of the general affordability of housing in Katy, TX, is the percentage of monthly income that should be spent on housing expenses, otherwise known as the debt-to-income ratio (DTI). Generally speaking, no more than 28 percent of your total gross income should be spent on your housing expenses and not more than 36 percent of your gross income on total expenses, including debts. In Katy, the median monthly income is $111,964 for those who own their own homes. Under the standard rule, that income level would allow for $2,612 to be budgeted for housing expenses each month, at the most. Renters, on the other hand, earn about $46,318, per the median income in the area. That would allow for renters to spend up to $1,081 on monthly rental expenses.

      Texas Sales Tax

      State General Sales Tax With Max Surtax
      Texas 6.25% 8.25%

      Texas Income Tax

      State Income Tax (Low) Income Tax (High)
      Texas 0% 0%

      Goods & Services

      Item Katy National avg. Difference
      Haircut $20.33$24.2616.2%
      Beauty Salon $47.38$45.564.0%
      Toothpaste $3.48$3.706.1%
      Shampoo $1.22$1.285.0%
      Movie $12.19$12.130.4%
      Bowling $15.83$18.0012.0%

      Groceries

      Item Katy National avg. Difference
      Ground Beef $5.25$5.8410.1%
      Fried Chicken $1.61$1.572.4%
      Milk $4.55$4.672.5%
      Potatoes $5.00$4.931.4%
      Pizza $11.82$12.092.2%
      Beer $10.38$10.410.3%

      Health Care

      Item Katy National avg. Difference
      Optometrist $125.98$125.680.2%
      Doctor $90.89$135.7833.1%
      Dentist $108.10$113.294.6%
      Ibuprofen $10.46$10.651.8%
      Lipitor $503.40$468.607.4%

      Housing

      Item Katy National avg. Difference
      Home Price $208,700.00$184,700.0013.0%
      Avg. Mortgage Payment $2,055.86$2,346.6912.4%
      Apartment Rent $1,147.00$949.0020.9%

      Transportation

      Item Katy National avg. Difference
      Gasoline $3.14$3.469.1%
      Tire Balancing $56.62$59.925.5%

      Utilities

      Item Katy National avg. Difference
      All Electricity $233.43$193.9920.3%
      Phone $208.71$192.258.6%
      Although the cost of living data is updated regularly, this cost of living information is to be used as estimates only as prices can change on an ongoing basis.

      Nearby cities with low cost of living

      City Population Cost of Living Index National Avg.
      Wallis, TX1,7558514.8%
      Brookshire, TX5,6018812.4%
      Orchard, TX166928.5%
      Richmond, TX12,592982.3%
      Meadows Place, TX4,8991011.1%
      Katy, TX20,2961043.8%

      Cities with similar population

      City Population Cost of Living Index National Avg.
      Libertyville, IL20,30013736.8%
      Ashland, OH20,3048713.5%
      Bayou Cane, LA20,307945.6%
      Warrensburg, MO20,313928.2%
      Rolla, MO20,2738911.1%
      Katy, TX20,2961043.8%
      Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.