HOUSTON — For those living in the Bayou City, the daily grind on the 610 Loop or the Katy Freeway is more than just a headache—it’s a major financial burden. A new report from the U.S. Bureau of Labor Statistics (BLS) confirms that Houston-area residents spend a higher percentage of their income on transportation than those in any other major American city.
The report, which details consumer spending through late 2024 and early 2025, highlights a growing “affordability gap” in a city long praised for its low cost of living.
The Price of the Drive
According to the BLS data, transportation now consumes 19.8% of the average Houston household budget. This sits significantly above the national average of 17.0%.
- Total Annual Spend: Houstonians spend an average of $16,931 per year just to get around.
- Car Dependency: Unlike cities with robust rail systems, 92.7% of Houston’s transportation spending goes toward buying, insuring, and maintaining private vehicles.
- The “Traffic Tax”: Congestion and long commutes cost the average local driver roughly 69 hours in delays and over $1,600 in wasted fuel and productivity annually.
Housing and Lifestyle Costs also on the Rise
While transportation is the standout statistic, it isn’t the only area where Houstonians are feeling the squeeze. The report found that residents are also allocating larger-than-average shares of their income to housing and leisure.
| Spending Category | Houston Share | National Average |
| Transportation | 19.8% | 17.0% |
| Housing | 33.9% | 33.2% |
| Entertainment | 6.1% | 4.6% |