Key Takeaways
- Katy, Texas, offers affordable housing, with median monthly costs below the national average for homeowners and renters.
- The cost of living in Katy is 10% lower than the national average, with no state or local income tax.
- Katy’s master-planned communities and proximity to Houston provide retirees with modern amenities and world-class health care access.
Katy is a rapidly growing suburb west of Houston known for comfortable communities and modern amenities. With a population under 28,000, it will appeal to retirees who are seeking warm weather, safety, and everyday convenience without the crowds and fast pace of city living.
Cost of Living and Housing
Housing in Katy, Texas, is more affordable than it is in many master-planned retirement markets in the Sun Belt. Median monthly housing costs in Katy are $1,839 per month, with renters paying an even lower $1,609. This is lower than the national median cost of housing per month for homeowners, which in 2024 was $2,035. (It is slightly higher, however, than the median monthly cost for renters, which was $1,487.)
Everyday essentials in Katy are also moderately priced, further benefiting retirees on a budget. Katy is primarily located in Harris County, where in January 2026, the average cost of gas was $2.388 per gallon, compared to a national average of $2.862 per gallon. Groceries in Katy are 4% lower than the national average. And the average electricity bill for Harris County residents is $170.15 per month, which is lower than that of 169 other counties in Texas. Overall, the average cost of living in Katy is 10% lower than the national average.
Texas does not have a personal state income tax, which is a major benefit for retirement planning. There is no local income tax in Katy, either. Katy homeowners do pay property tax at a 2025 rate of $0.425 per $100, significantly lower than the national 2024 average of $0.888 per $100.
Lifestyle and Community Appeal
Katy’s neighborhoods feature a mix of single-family homes, gated communities, and condos. Many of the neighborhoods are master-planned communities with fitness centers, pools, walking trails, parks, and more. The suburb overall is a clean, well-planned environment with strong local infrastructure and services. The lifestyle in Katy will appeal to retirees who value predictability, ease, and a relaxed suburban pace…