The Average Cost of Living in Austin: 2024 Guide

Texas sells itself as one of the few states in the U.S. that does not tax the personal income of its residents. However, that doesn’t stop future Austinities from worrying about other financial aspects that could add up to the total cost of living in Austin.

For instance, the cost of housing in Austin, TX, has risen significantly over the past few years. Add this to the city’s property tax, and you will have some significant monthly expenses. Plus, the scorching summers call for constant air conditioning, adding to the utility bill.

How affordable or expensive are these bills?

Is the average salary in the city enough to offset these costs?

Generally, Austin’s entire living cost falls 1% lower than the national average. But, let’s take an in-depth look into what it takes financially, on average, to live in Austin in 2024.

Housing Costs

The number one concern for many prospective residents is the rising cost of housing in Austin.

If Austin movers are helping you relocate from a city like Houston, you may wonder, ‘Is Austin more expensive than Houston?’ 

Well, yes. Austin is notably more expensive than Houston. Where the median home sale price is $312,500 in Houston, you’ll most likely pay over 60% more to get a similar home in Austin.

• Average House Rent: $1,703
• Median Home Value: $502,500

While the market maintains a hot and demanding trend in 2024, you can still buy a home below the listing price here. But, it all depends on the location — even for rentals.

For instance, if you rent a one-bedroom apartment in the city center, like downtown Austin, you are looking at around $3,376 per month. But if you are okay living a bit further out, rent drops to around $1,600.

Note:

Whether you are renting or buying in Austin, the city’s growing popularity has driven prices up, 9% higher than the national average. The home prices may seem steep, but they are nothing shocking for a booming tech hub.

Taxes — The Sweet Texan Deal

Taking a break from the high housing cost, you won’t be shelling out a single dollar in state income tax in Austin. .

Texas is one of the few states that tries to allow you to maximize your income, leaving more money in your pocket for breakfast tacos and the legendary BBQ.

But there’s a catch!

Property taxes in Austin are considered high, usually sitting between 1.8% – 2.5% of your home’s value.

The range is due to there being no single value for tax rates in different areas of Austin. You may have a certain property tax rate, and someone else only a few blocks away will have a different rate.

• Property Tax Rates: 1.8 – 2.5%
• Sales Tax Rate: 8.25%

Austin’s property tax varies due to the combined rates of the city tax rate, county rate, local school district, and other special districts. These rates vary with area.

Utilities

With Austin’s blazing summers, cranking up the A/C is non-negotiable. Thankfully, utility costs in Austin are lower than both the national and state averages at 4% and 7% respectively.

Your monthly utility bill might be around $170.08 on average, which is less than what people pay in most places. However, spending up to $300 monthly on utilities like electricity, heating, cooling, water, and garbage is not uncommon. 

Considering you will be using a lot of these, given Texas’s arid and hot climate, there’s only one answer to the question, ‘Is it expensive to live in Austin, Texas?’—no.

• Energy: $192.87 monthly
• Phone Bills: $186.57 monthly 
• Gas: $3.08 per gallon

Food and Groceries

Austin is a foodie’s paradise!

While dining out at all those trendy spots can add up, groceries are fairly reasonable, at 2% lower than the national average.

Expect your monthly grocery bill to hover around $300 – $500, depending on your eating habits.

You can snag a delicious meal for around $13 – $30. A mid-range three-course dinner for two costs an average of $78. However, depending on where you go, this may cost you as much as $120.

Income in Austin — Tech Salaries and Beyond

An important factor to consider when evaluating the average cost of living in Austin, TX, is the average income.

Austin’s booming tech industry has pushed salaries higher than the national average, averaging a base earning of $82,000.

Whether you work in tech, education, or healthcare, you will find competitive pay here. However, although the average is high, some workers may still earn below it.

Where an operations manager earns $73,496 on average, and an entry-level data analyst takes home around $68,319, a project manager could earn a little over $81,425.

Generally, if you are in the tech sector, expect to see numbers well into the six figures.

• Population: 979,882
• Median Household Income: $86,556
• Unemployment Rate: 3.7%
• Poverty Rate: 12.4%

Transportation: What Does it Cost to Scoot Around?

Austin’s traffic is not a mess, even though it can get congested, especially during rush hours.

The city’s average commute time is 3 minutes less than the national average, and there are plenty of ways to get around.

Over 80% of the residents drive themselves around. But, the CapMetro buses are also convenient enough if you need to get around the city.

A monthly bus pass costs around $45, while a single ride is just $1.50.

Healthcare — A Clean Bill of Health or a Huge Bill of Debt?

Healthcare in Austin is not the cheapest part of living here compared to other cities in the state.

In Austin, healthcare costs are 3% higher than the state average. But compared to the national average, you can yank some money off your overall cost of living in Austin as healthcare tends to have a price tag that’s 2% lower.

Goods and Services — A Mix of the Essentials

Getting essential services and items in Austin won’t cost you an arm and a leg.

The costs of goods and services here are generally 4% lower than the national average. Significantly reducing the burden on your overall cost of living in Austin.

A standard men’s haircut costs around $30, while a visit to the beauty salon will run closer to $60 – $80.

Thinking about getting fit? Prepare to pay an average of $52 for a local gym membership.

Meanwhile, movie tickets cost about $14 for one seat, and a pair of Levi’s jeans can run into an average of $63.19.

Bottom Line: The Austin Price Tag

The cost of living in Austin isn’t exactly a bargain, especially when you compare it against that of cities like Houston. However, compared to many other similar cities, Austin is quite affordable.

With no state income tax and access to a booming job market, Austin’s exciting lifestyle and quality of life make it worth the price. 

While it may seem like you’ll spend a fortune on housing, you gain in transportation, groceries, goods and services, utilities, and even healthcare.