HOUSTON – A recent study is shedding some troubling light on how vast the differences are when it comes to the median income in Houston versus how much residents need to earn to live comfortably.
Granted, we all have different definitions of success and what “living comfortably” looks like. For me, it’s just being able to not look at my checking account every time I make a purchase.
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The study, conducted by ConsumerAffairs, examined how much money people need to earn to make ends meet if they’re moving to a major city like Houston. According to the report, people need to earn about $62,890—or $30.24 an hour.
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Combat this with the city’s median salary (from 2022) at $60,426 and the median rent cost is $1,572. The study says many find this lifestyle out of reach.
Part of this could be because the cost of living continues to rise, but wages remain static.
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In fact, one of my colleagues, KPRC 2 digital content producer Holly Galvan looked at how in Texas, the minimum wage has remained unchanged since 2009 at $7.25 per hour.
This doesn’t mean we all shouldn’t strive for that “tophat and monocle” money.
To figure out how we do that, KPRC 2 digital content producer Ahmed Humble reached out to Ashley Eneriz, finance expert and Deputy Editor of Finance for ConsumerAffairs’ to get some answers.
For starters, Eneriz tells me via email, people should separate their financial wants and needs.
“In order to figure out how much you need to earn to stop living paycheck by paycheck, add up all of your necessary monthly expenses (this includes debt repayment) and then increase that by 25%,” she said.
Simultaneously, these numbers shared by ConsumerAffairs highlight a bigger issue on just how Houston residents are living paycheck to paycheck.
“Our data shows that the average Houstonian needs to earn $62,890 in order to afford the area, but at that income, your budget is going to feel tight, especially if you are struggling with student, credit card, or auto debt,” Eneriz explained. “Ideally, your mortgage payments or rent costs should be 28 to 35% of your gross monthly income—the money you make before taxes are taken out.”
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“The higher this percentage is compared to your income, the harder it is to breathe financially,” she added. “In some areas, to live somewhere that is clean and safe—not even spacious or luxurious—can cost you half of your paycheck.”
There are even those, like me, who genuinely love their jobs and have a master’s degree but didn’t start out making a livable income.
“At the end of the day, you have to figure out how to make your budget work with you, not against you,” Eneriz said. “My only advice here is to be open to creative and unconventional paths. Maybe this means negotiating for partial remote hours and moving further from the city lines to cut living expenses.
“This can also mean keeping your passion as a side hustle while devoting your 40 hours a week to a more stable-paying job,” she continued. “There is no right answer since everyone’s path, budget, and desires will look different.”
To read the full report by ConsumerAffairs, visit their website.