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Salaries in Houston, Dallas-Fort Worth and Austin don't top the national charts, but a low cost of living helps stretch paychecks in the Texas cities further than in most places, according to a new ranking compiled by demographer Joel Kotkin.

The newgeography.com study looked at average annual wages in the nation's 51 largest metropolitan areas and adjusted them for the cost of living. Houston led the way by a long shot, with Dallas-Fort Worth at No. 5 and Austin at No. 8. San Antonio, where wages are much lower, ranked 36th.

The study took into account consumer prices and services, utilities and transportation costs, and, most importantly, housing prices, Kotkin said Tuesday.

"That's what really gave the Texas cities a big edge," Kotkin said, noting that housing is about 30 percent of the cost-of-living equation. "Basically, the Texas cities are pressing their advantage by showing you can have economic growth without having wild asset inflation."

The equation did not include taxes, which would have stretched the gap between the Texas cities and most other areas, he said.

"We were surprised by the Texas salaries, particularly in Houston," Kotkin said. There, the 2011 average annual wage was $59,838 and grew to $66,933 when adjusted for the cost of living.

By comparison, in No. 2 San Jose, Calif., the annual wage was $92,556, the highest in the country, but that figure slipped to $61,581 when adjusted for the cost of living.