New York City is the most expensive U.S. city to live in. Dallas and Austin are the costliest cities in Texas.

Nadia Trevino January 9, 2025

Dallas has become the most expensive city in Texas in a discovery of the expense of living throughout the United States — Credit: Unsplash

Texas – Based on the most recent numbers from Numbeo’s 2025 cost-of- living index, Dallas has become the most expensive city in Texas in a discovery of the expense of living throughout the United States. Though behind leaders like New York, San Francisco, and Honolulu, the city ranks 24th nationally and it’s leading the charge within the Lone Star State.

Covering 52 major cities, Numbeo, an online database, does comprehensive research looking at elements ranging from crime rates and healthcare quality to general living expenses—excluding rent. When one considers rent, Dallas stays at the top in Texas and rises to 21st in North America, pushing Austin, slightly behind, to the 22nd position.

Dallas’s living expenses are about 3 percent over the national average and 12 percent higher than the state average, according to financial analysts from Unbiased, a personal finance website. With eliminating housing, the data points to a single person’s monthly spending in Dallas potentially reaching roughly $1,192 while a family of four could face costs of $4,202.

The discrepancy in living costs is even more apparent when comparing Dallas to other Texas cities. Austin leads with the highest rent rates in the state even if overall living expenses are lower. Austin ranks 12th in North America according to Numbeo’s rent index, which compares rent to New York City. Dallas boasts a rent index of 46.2, meaning that, despite its general cost, rent there is 53.8% cheaper than in New York.

With regard to living and rent indices, Houston and San Antonio provide better affordability. Ranked 40th for cost of living, Houston shows greater restaurant affordability; 25th in Numbeo’s restaurant index, which contrasts dining expenses with those in New York City. This suggests that, even if overall expenses are lower, dining out in Houston may be rather more expensive than other expenditures.

Driven by events including inflation, labor expenses, and supply chain issues, the National Restaurant Association notes that U.S. menu prices have increased by 3.6 percent over the past year. Rising food prices are forcing dining establishments to change their policies. While some are using service charges or streamlining their menus to control expenses without burdening patrons, others are increasing menu pricing.

Residents and future migrants have to carefully negotiate these financial waters as living and eating expenses change, weighing both personal lifestyle choices with more general economic realities. Although it remains to be seen whether these patterns will hold in the coming years, Dallas currently has the dubious distinction of being the most expensive city in Texas to live in.