The Real Cost of Moving to Houston
If you’re thinking of moving to Houston, you’re not alone. The Houston metropolitan area is the fifth largest in the United States, and that’s definitely a reflection on the area’s popularity. Before you make the move, just remember there are some hidden costs involved. Here are a few expenses to expect when moving to the Houston area.
Income Tax vs. Sales Tax
Texas touts its lack of an income tax as a reason to move to the state. However, it makes up for the lack of income tax with a pretty hefty sales tax (depending on where you live in the city). As a general rule, the larger the city, the higher the sales tax. Houston is no exception, and it levies a sale tax of 8.25 percent, according to SmartAsset.
Cost of Transportation
Houston has an adequate public transportation system, but it’s nowhere near as comprehensive as a city like New York. Major routes along the highways and between neighborhoods are covered by buses, and the city’s rail line connects major points around downtown and nearby neighborhoods.
However, the rail line doesn’t extend very far beyond the downtown area, and bus connections become rare the further out from the city center you go. Major suburbs surrounding Houston, like Katy, Sugar Land, and The Woodlands, aren’t connected at all. This means you’ll have to invest in a car if you plan on commuting into the city. Beyond a cost of a vehicle, this will also mean having to pay for yearly inspections and insurance.
Median Home Sale Price
Houston homes can start below $100,000, making it seem as if homes around Houston can be had for a bargain. This might be true for a few homes, but many of the city’s most heavily trafficked destinations have a much larger median sale price. The Woodlands, for instance, carries a median sale price of $346,618, while the historic and affluent neighborhood of River Oaks carries a median sale price of $985,175. Careful shopping can find you a home for an affordable price in even some of Houston’s most competitive neighborhoods, but finding these homes is easier in less trafficked parts of the city.
Parking Costs
Like many major cities, it can be difficult finding a parking space in areas like Downtown Houston. The downtown area has plenty of parking for a fee, but it can be hard to find a place to park without paying money. While people might expect this in a place like downtown, it can also be difficult to find parking in adjacent Midtown and East Downtown. This problem gets particularly bad on the weekends, when crowds flock to these areas to visit the many restaurant, bars, and entertainment venues. As a result, you can expect to pay for parking whenever you’re in the central part of Houston.
Home Buying Costs
There are a few general hidden costs when buying a home in Houston that aren’t necessarily specific to the city but require consideration. When buying a home, the cost of home inspections are the responsibility of the buyer. Buyers also have to pay for a home appraisal before the home can be purchased. When closing the purchases, there are also closing costs that include processing fees and survey fees. Buyers also have to consider the costs of paying movers, and (in some cases) the fees that will be due to the local homeowners’ association.