Cost of Living in Austin, TX
Austin is about 17% more expensive than the national average.
What Things Cost
Compared to the US average (100)
Census ACS 2024
Census ACS 2024
BEA RPP 2023
BEA RPP 2023
Austin at a Glance
No state income tax. That saves a typical household thousands per year compared to states like California (13.3%) or New York (10.9%).
Sources: Census ACS 2024, Tax Foundation.
Austin spent a decade as America's "it" city for relocation, and the price tag has caught up. The median home price has roughly doubled since 2018, landing around $475,000, well above the Texas average and above the national median. The live music, SXSW, and "Keep Austin Weird" brand remain, but the financial picture has shifted from genuinely affordable to moderately above average. The no-income-tax advantage is real but partially offset by property taxes averaging about 1.8% in the metro, among the highest rates in Texas. For someone coming from California or the Northeast, Austin still offers meaningful savings. For someone coming from San Antonio or Dallas, it now costs noticeably more.
How People Get Around
Source: Census ACS 2024.
Who Lives Here
Source: Census ACS 2024.
Why People Move to Austin
The tech sector has transformed Austin from a college-and-government town to a legitimate tech hub. Tesla's Gigafactory, Oracle's relocated headquarters, Apple's billion-dollar campus, and Google's growing presence have created a job market that rivals older tech centers. The University of Texas anchors the city's creative and intellectual energy. The music scene, while evolving, remains the deepest in Texas. Barton Springs, Lady Bird Lake, and the Hill Country provide outdoor access. The food scene, especially barbecue and Tex-Mex, is nationally acclaimed.
Neighborhoods
South Congress (SoCo) is Austin's most iconic strip, with boutiques, music venues, and food trailers. East Austin has gentrified rapidly and is now pricey. The Domain in North Austin is a mixed-use development that functions as a second downtown for tech workers. Mueller is a planned community on a former airport with walkable design. Round Rock and Cedar Park to the north offer more affordable suburban living. Buda and Kyle to the south are the fastest-growing affordable alternatives.
Things to Consider
Traffic has become Austin's defining complaint. The city's infrastructure was not built for its current population, and congestion on I-35 and MoPac is severe. Summer heat is intense, with temperatures exceeding 100°F regularly from June through September. The affordability that drew people here has eroded, and local residents have mixed feelings about the growth. Cedar allergies in winter are notorious. The property tax rate is a hidden cost that can add $700+ per month on a median-priced home.
Compare Austin To...
Frequently Asked Questions About Austin
Compared to where it was five years ago, no. The median home price has roughly doubled. Compared to California tech hubs, yes, Austin still offers significant savings. A household earning $80,000 can live reasonably well if renting, though homeownership requires more. The no-income-tax advantage adds roughly $4,000 to $8,000 in annual savings compared to California, but property taxes of 1.8% add a substantial cost that partially offsets the housing savings.
Very hot. Austin averages about 20 days above 100°F per year, and the stretch from June through September consistently exceeds 95°F. The heat is humid enough to be oppressive. Air conditioning is not optional; it is a survival necessity, and electricity bills during summer months can reach $200 to $400. Spring and fall are genuinely pleasant, and winter is mild by national standards with highs in the 50s and 60s.
Dramatically. Austin's median home price of $571,000 is roughly one-third of San Francisco's $1.35 million. There is no state income tax in Texas, saving a Bay Area transplant earning $150,000 roughly $10,000 to $14,000 per year in state taxes. Property taxes are higher in Austin (1.8% vs 0.72% in California), but on a much cheaper home, the absolute dollars are still lower. Overall, a move from SF to Austin typically saves $2,000 to $4,000 per month.