Austin, TX Cost of Living [2024 Guide]

Moving to a new city is full of excitement and maybe a few butterflies, especially when considering the area's cost of living. Austin, Texas, is famous for its music, festivals, and delicious breakfast tacos, but how much does it actually cost to live there?

How does Austin's cost of living here compare to other major cities? Will your budget stretch to accommodate both the necessities and the luxuries that make life in Austin so appealing? This is where understanding the details of Austin's cost of living is important.

As we dive deeper, we'll uncover the nuances of living expenses in Austin, from housing to dining, and explore whether the lifestyle that Austin promises is worth the price you’ll pay. But be prepared: the answer may surprise you, and it might just change the way you see this vibrant city forever.

Key Insights for the Cost of Living in Austin, TX

How Much Does it Cost to Live in Austin?

Are you drawn to the idea of living in the world's live music capital? Austin, Texas, offers a unique blend of small-town charm and big-city vibes. Recently ranked as the number one place to live in Texas and celebrated as one of the top places to live in the U.S., Austin is more than just a spot on the map; it's a community that feels like home.

Austin has become a magnet for young professionals, thanks to its booming technology hub with numerous startups. And when the workday ends, the city truly comes alive. Austin's nightlife, fueled by an unparalleled live music scene, boasts world-famous festivals like Austin City Limits and SXSW, making every night an adventure.

But what about the cost of living in this vibrant city? The cost of living index in Austin is 129.1, which is 29.1% higher than the U.S. average. In simple terms, this means you'll spend $129.1 in Austin for goods and services that would cost $100 elsewhere in the country.

Austin's higher cost of living ranks it 71st out of 500 U.S. metro areas. Despite the higher expenses, many find that the benefits outweigh the costs. With higher wages, a thriving economy, and a wealth of amenities, moving to Austin could be a wise investment.

A typical home in Austin costs $544,638, making it 76.7% more expensive than the national average of $308,121 and 10% higher than the national average of $495,100.

To live comfortably in Austin, an individual typically needs an annual income of $58,800, while families may require around $110,520. These estimates factor in median home prices, rent, utilities, and a comfortable lifestyle. As you consider your move, it's crucial to factor in your budget.

How Much Does Austin Housing Cost?

Housing prices in Austin are slightly below average when compared to other large cities in the U.S. On the other hand, when comparing the price of a home in Austin to other cities in Texas, Austin appears to be less affordable. For example, home prices in Austin are significantly lower than those found in such cities as Los Angeles or New York City. But when comparing the price of a home in Austin against what someone would pay in a city like Amarillo, Texas, Austin home prices are much higher.

Median Home Prices in Austin

When buying a home in Austin, homebuyers are presented with a wide range of prices; a basic single-family home might cost around $500,000, while waterfront homes in West Austin can have prices that exceed $4 million. Some of the most desired homes in the city boast views of Lake Travis or the dazzling Downtown Austin skyline. Homes in the southern part of Austin typically have lower prices than the homes in Central Austin.

Median Rent in Austin

Prices for renting a home or apartment in the Austin area depend primarily on the size of the residence. For studio apartments, renters should expect to pay between $450 and $1,800 per month, depending on the location.

For a one-bedroom, those looking to rent should expect to pay anywhere between $1,470 and upwards of $1,390 per month. Two-bedroom apartments can range from $1,630 to $1,720 per month. The price to rent a home with three or more bedrooms can range from $2,090 to upwards of $2,210 per month.

Price of Utilities in Austin

Living in Austin comes with various utility costs that you need to budget for. Whether you own a home or rent an apartment, these expenses are a crucial part of your monthly outlay. Here’s a breakdown to help you plan:

• Electric Bills: Expect to pay around $60 a month in the winter and up to $140 in the summer.
• Water Usage: Costs can range from $7 per month for single-person households to $35 or more for larger families.
• Natural Gas: The average monthly bill is approximately $3.29 per thousand cubic feet.
• Internet Service: Prices range from $50 to $96 per month, depending on the provider and package (around 60 Mbps or more, unlimited data, cable/ADSL).
• Cable TV: Plans vary between $65 and $140 per month, based on the chosen package.
• Landline Service: Expect to pay around $30 a month.
• Home Insurance: Your home insurance can cost between $230 and $2,000 a year, home insurance policies can depend on the home's size and value.
• Car Insurance: Yearly rates range from $1,224 to $2,330.
• Trash Collection: Fees range from $23.30 to $50.15 a month, based on the size of your trash receptacle.

Utilities are an essential part of living expenses in Austin, and knowing these costs upfront can help you manage your budget more effectively. By breaking down these expenses, you can get a clearer picture of what to expect and plan accordingly for your move or current stay in this vibrant city.

Cost of Food in Austin

Austin residents have access to an abundance of delicious food options, whether buying groceries at the store or dining out at local restaurants. Known for its vibrant food scene, especially its barbecue, Austin is a food lover's paradise. But how much should Austinites expect to spend on food?

Groceries in Austin

For groceries, Austin residents usually pay around $302 per month, though this varies according to household size. Grocery prices in Austin are around 12% less than the national average. Here are some common grocery items and their average costs:

• Loaf of bread: $2.79

• One gallon of milk: $0.90 to $1.40

• Carton of 12 eggs: $2.49 to $4.04

• Bunch of bananas: $1.08 to $4.41

In terms of grocery shopping, Texans have a deep love for H-E-B, and it's easy to see why. H-E-B offers unbeatable prices, a wide selection of grocery and household items, and fresh produce. Texans find their shopping experience at H-E-B incomparable, thanks to attentive customer service and convenient store locations spread throughout the Lone Star State. By shopping smart and taking advantage of the variety of food options available, Austin residents can enjoy a rich culinary lifestyle without breaking the bank.

Restaurants in Austin

From casual eateries to upscale establishments, the options are endless. But how much can you expect to pay for a meal out in Austin?

When dining out, Austin residents can expect to pay around $15 per meal at casual restaurants, which is comparable to the national average. However, prices can soar to $50 or more per meal at high-end establishments.

The number of people in your group also plays a significant role in determining the final bill. Whether you're dining solo or with a large group, it's essential to consider the following price ranges according to restaurant type:

• Fast Food: $8 to $12, depending on the number of people
• Casual Dining: $12 to $30, depending on the restaurant
• Fine Dining: $50 to $120 or more

When planning a night out, consider the type of restaurant and the number of people in your group to get an estimate of the final cost. This will help you budget accordingly and ensure a stress-free dining experience.

Public Transportation Costs in Austin

Austin's public transportation is another factor that residents must budget for when searching for Austin's cost of living. While some neighborhoods in Austin are quite walkable, residents rely on their own vehicles or other modes of transportation to get around.

Commuting by car is common, with 72% of residents driving to work alone. This heavy reliance on cars makes gasoline a significant expense, with gas prices ranging from $2.85 to $3.19 per gallon. However, prices can fluctuate. For those looking for alternatives, Austin offers a vast public transit system.

Capital Metro Bus System covers 535 square miles. Fares are affordable:

• Single ride: $1.25
• Day pass: $2.50
• Weekly pass: $11.25
• 31-day pass: $41.25

MetroRail train fares provide another convenient option:

• Single ride: $3.50
• Day pass: $7.00
• Weekly pass: $27.50
• 31-day pass: $96.50

For residents, cheaper fares are available:

• Single ride: $1.25
• Day pass: $2.50
• Weekly pass: $11.25
• 31-day pass: $41.25

Taxi fares depend on distance and wait time:

• First 1/11 mile: $2.50
• Each additional 1/11 mile: $0.20
• Wait time: $29 per hour
• Airport surcharge: $2.50

Living in Austin means having various transportation options, from driving your own car to using public transit or taking a taxi. Understanding these costs can help you better manage your budget and make the most of the city's diverse transportation system.

Healthcare Costs in Austin

The cost of health care is an important consideration of the cost of living in any city. Fortunately, doctor visits and prescriptions in Austin are slightly lower than the national average.

A visit to an Austin area doctor typically costs residents around $110 per visit. This varies according to whether patients have any procedures done while at the doctor. A trip to the dentist, meanwhile, costs slightly less, at about $95. Residents who need new eyeglasses can expect to pay around $113 to visit the eye doctor.

The prices that Austin residents pay at the pharmacy vary according to their age and insurance coverage, but the average cost for prescriptions is about $439 each year. Residents who have pets should expect to pay around $52 for each visit to the veterinarian.

Child Care Costs in Austin

Research shows that Austin residents can spend more than 25% of their annual income on child care. This makes it even more important for families to find affordable child care in their area.

Daycare centers in Austin are the ideal choice for many households. On average, Austin residents can expect to pay about $680 per month, per child, for enrollment at a daycare center.

For some households, hiring a nanny is another option. When it comes to cost, Austin residents can expect to pay at least $16 an hour on average for the services of a nanny. This usually comes out to around $560 per week for the services of a full-time nanny who works about 35 hours.

A third option is an after-school care program. After-school care ranges in price from free offerings from non-profit organizations to $399 or more a month, depending on the institution, including schools, the YMCA, and other after-school programs. There are also options for childcare via apps such as Bambino, where babysitters charge anywhere from (typically) $12-25/hr in the Austin area.

Entertainment in Austin

Austin is famous as a hub for entertainment. Entertainment in Austin runs the gamut from live music to the great outdoors. Residents can also find top-notch shopping locations in Austin, as well as museums and sporting events.

Live music in Austin includes outdoor concerts music festivals, and various music venues throughout the city. The Austin City Limits Music Festival costs from $300 to $4,000 to attend all or part of the three-day event.

Residents can also enjoy music at one of the local clubs, with admission prices ranging from free to between $5 and $15 to listen to local bands. Ticket prices go up from there for national bands.

Outdoor activities are also popular in and around the Austin area, including biking, hiking, camping, swimming, and other water sports. While hiking, biking, and swimming are usually free in area parks and outdoor spaces, others, such as camping and activities on the water, cost a fee.

Camping costs anywhere from $50 a day to $575 a month to stay at one of the area's RV parks. At a local campground, residents can find rates ranging from free to $56 for a small family of two adults and two children.

The Texas Longhorns from the University of Texas at Austin hosts many sporting events each year. A Texas Longhorns' NCAA football home game ticket range from $15 to over $300, depending on the opponent and seat. The city is also home to the Austin Spurs, an NBA G League team. Tickets to a Spurs game cost around $37 on average.

Salaries in Austin

The average salary for a resident living in Austin, Texas, is around $54,673 based on the United States Census Bureau. The median household income in Austin is around $86,556. The minimum wage in Austin is $7.25/hour, which is the same as the national minimum wage.

The current unemployment rate in Austin hovers around 3.20%. This is slightly lower when compared to the unemployment of the U.S. as a whole, which is 3.6%. Texas does not have a state income tax, allowing residents to increase take-home pay.

The highest-paying jobs in Austin include transportation, storage, technology, and distribution field jobs. This is followed closely by high-level officials within the various emergency service departments and people working within the court system. The utility industry creates many jobs too. Workers in the technology sector and the medical fields are highly prevalent. Other top employers include fast-food restaurants, customer service companies, retailers, and the technology industry.

Frequently Asked Questions About Austin's Cost of Living

Is Austin expensive to live in?

While Austin's housing market can be competitive, its overall cost of living is generally on par with the national average. It all boils down to your lifestyle choices, budgetary decisions, and how effectively you leverage those cost-saving tricks that are signature to Austin.

What salary do you need to live comfortably in Austin?

This is always a tough one. A comfortable lifestyle in Austin typically requires an annual income ranging from $58,800 for individuals to around $110,520 for families, but those are just estimations based on median home prices, rents, average utility bills, and a comfortable lifestyle. When considering salary, you'll want to factor in your budget. 

Is it cheaper to live in LA vs Austin?

Ah, the battle of Texas vs. California. In general, you'll likely find the austin cost of living, especially when it comes to housing, to be a bit friendlier on your wallet than Los Angeles. It's cheaper to live in Austin than Los Angeles in most cases.

Is Austin more expensive than Dallas?

This is a closer comparison because both are in Texas. Typically, Austin has edged out Dallas slightly in cost of living in recent years, mostly due to housing. But as always, particular needs and spending habits factor greatly.

Austin is a Great Place to Live

While the cost of living in Austin is slightly higher than the U.S. average, the city still has a relatively low cost of living compared to other highly populated city centers around the country. Austin is a desirable location for anyone looking to live in a big city without most of the associated high costs. Whether residents want to spend time outdoors or check out the city life, Austin has a lot to offer.

Overall, Austin, Texas, is a great place to live. The numerous restaurants and music venues located throughout the city give it a unique charm. In addition, Austin's proximity to the University of Texas and designation as the capital of Texas create plenty of jobs in the area.

The city's friendly residents, fun entertainment options, variety of restaurants, and moderate cost of living have resulted in many newcomers moving to the area. All of this has combined has inspired people from across the country to move to Austin.

If you're considering moving to Austin, Texas, ask anything about moving, buying, or selling with our real estate consultant here or give us a call at 512-580-9338!