Cost of Living in Katy, TX

With a cost of living index of 115, Katy, TX is somewhat more expensive than average. Living here is 15% more expensive than the national average and 27% above the Texas state average of 88. Katy is a smaller community of 23,900 residents, where everyday costs can differ substantially from nearby larger cities.

Housing costs are the biggest factor in Katy's cost of living. The median monthly rent is $1,609 (22% above the US median of $1,319), and the median home value sits at $376,800 (24% above the national median of $304,900). At current prices, the median home costs roughly 3.5x the median household income — a moderately affordable ratio by today's standards.

The median household income in Katy is $107,332, which is 43% higher than the national median of $75,149. Residents spend roughly 18% of household income on rent. This is a comfortable ratio, well below the 30% threshold that financial experts recommend as a maximum. While incomes are above average, they more than offset the higher cost of living.

Climate is another factor for anyone considering a move to Katy. The area sees an average annual temperature of 71.1°F, with summers averaging 85°F and winters around 57°F. Annual rainfall totals 49.7 inches spread over roughly 119 days. The mild climate is a draw for many residents and keeps utility costs moderate year-round.

Everyday prices in the Houston-Pasadena-The Woodlands, TX (Metropolitan Statistical Area) metro area tend to run above the national average. Out of 6 common grocery and utility items tracked by the Bureau of Labor Statistics, 5 are priced higher than the US average. These real-world prices — from groceries to electricity — add up and should be factored into any cost of living comparison.

Data sources: US Census Bureau (ACS 2023), Zillow Home Values, HUD Fair Market Rents, BEA Regional Price Parities, BLS Average Prices, and NOAA Climate Normals. Updated monthly.