Cost of Living in Austin, TX

Here’s what to know about the cost of living in Austin, TX, where a booming economy, Southern hospitality, and low prices led to a population spike.

Austin has welcomed a population surge bigger than a 10-gallon hat. 

For 12 years, it was the fastest-growing large metro area in the country before slipping into the number 2 position in 2023. 

Whether you’re a remote worker, growing family, or retiree, this city of less than a million people has something for everybody. And, despite so many people relocating to Austin, life in the Texas capital is still affordable. Here’s everything you need to know about the cost of living in Austin, TX. 

Housing Costs in Austin

Between 2020 and 2023, 1.6 million people moved to Texas. The Austin metro region received the bulk of the population growth, ballooning 7.2%. Even with so many people flowing into Austin, it’s still small compared to the rest of the “Texas Triangle,” which connects the Dallas-Fort Worth, Houston, San Antonio, and Austin metro areas and houses a mammoth 68% of the state’s population. 

Austin is home to roughly 980,000 residents. The metro population, which extends into urban suburbs like Travis, Williamson, and Hays, has a whopping 2.2 million people. Whether you want to live in a bustling downtown neighborhood with big city amenities or in the suburbs with access to green space and family-friendly cul-de-sacs, there are many neighborhoods to choose from. 

More than a decade of population surges made Austin one of the most competitive housing markets in the country. However, the city government is proactive about calming steep price hikes and implementing policies to increase housing construction and make living in Austin more affordable. 

According to RentCafe, there’s still work to do. Housing costs in the Austin area are 9% higher than the state average and a towering 31% higher than the state average, including big cities like Dallas and Houston. On average, Austinites pay $1,707 a month in rent for an 863-square-foot apartment, and homeowners shell out an average of $521,465. But don’t get sticker shock. According to RentCafe, 45% of rentals are still below $1,500. 

Depending on location, size, and amenities, you can find somewhere to rent in Austin that accommodates different budgets. Similar to other big cities, expensive rentals tend to convene around downtown Austin neighborhoods. East Austin, Old West Austin, and Clarksville have some of the most expensive housing costs in Austin, with average rent bordering $3,000. For more affordable rent in Austin, you’ll find better options closer to the Austin city limits. Residents of Highland, Coronado Hills, and St. Johns pay closer to $1,400. 

Everyday Living Expenses

Compared to other states across the South and Midwest, it’s expensive to live in Texas. However, the cost of living in Texas per month is still more affordable than other sought-after states like California, New York, and Florida. 

According to Numbeo, the average monthly cost of living in Austin, Texas, for a single person, is $1,096.60 without including rent. That’s actually lower than Dallas and on par with Houston and San Antonio, meaning rent is your biggest expense. With the right place to live and intentional budgeting, life in Austin can be affordable. 

How do Texas living costs add up in Austin? That depends on your day-to-day lifestyle. To decide whether moving to the Lone Star’s capital is the right financial move for you, here’s a breakdown of everyday expenses: 

Utility costs

One downside of living in Texas is its deregulated energy market. When extreme weather hits Texas and stresses the energy grid, utility costs surge. The average utility bill (which includes electricity, water, and garbage) for a 915-square-foot apartment is $169.95, and the average internet and cell phone plan costs roughly $60.00 and $65.00 each. Expect the average water bill in Austin to be somewhere between $13.89 and $17.87, depending on the home. 

However, one reason to choose Austin over other cities is Austin Energy, which offers lower utility bills than other Texas cities due to energy efficiency equipment and green initiatives. Even during summer and winter surges, your energy bill will likely be lower than your Texas neighbors. 

Monthly bill amounts change based on how much power you use and the size of your home. An easy way to forget about utility costs (and cushion yourself from surges) is to look for apartment contracts that include utilities in the cost of your rent. 

Transportation

For city dwellers accustomed to a car-less lifestyle, car dependence is a major con of living in Austin. Most of your daily errands require a vehicle. According to Way, Austinites spend $564 per year on minimum coverage and $1809 per year for full coverage, which is slightly lower than the national average. This will vary based on your car history and vehicle. The average cost of gas is $3.10. 

For people living in the downtown Austin area, the Capital Metro runs a small fleet of regular and express buses and commuter rail. Service concentrates heavily around central Austin and the University of Texas campus. CapMetro fare costs $2.50 for a single ride or $2.50 for a day pass for bus services, while rail fare costs $3.50 for one ride or $7.00 for a day pass. CapMetro also offers monthly flat fares for $41.25. 

Food and Grocery Costs

Austin is a dream city for foodies, especially if you love barbecue, Tex-Mex, and farmers markets. Plus, an abundance of food trucks makes grabbing food on the go a cinch. 

The diversity of food options makes it difficult to pin down a budget, but a family of four can expect to spend a minimum of $858.00 on basic grocery runs. A trip to the world-famous Franklin Barbecue will set you back $17.00 for a brisket sandwich (without all the sides). You’ll find plenty of meals on either side of that price point, from breakfast tacos for $2.25 at El Primo to a $115.00 tasting menu at Barley Swine. 

Healthcare and Insurance Costs

A 40-year-old Texan spends roughly $584 a month for a Silver insurance premium, and a regular doctor’s visit will set you back between $89-139. The final cost of your healthcare depends enormously on your age, family size, and household income. Likewise, a significant portion of Texans are eligible for free or subsidized insurance rates in the state marketplace. 

Lifestyle and Entertainment Expenses

Austin is the live music capital of the world. On any given night, you can catch a live show at more than 200 live music venues all over the city. According to Expatisan, a movie night for two costs $27.00, a cocktail in a trendy bar costs $14.00, and a gym membership in downtown Austin costs $58.00. 

With warm weather year-round, Austinites love to stay active. There are plenty of free outdoor activities to enjoy with family and friends, like trekking on the Butler Hike and Bike Trail, swimming in Barton Springs Pool, or bat watching on Lady Bird Lake. 

Average Salary and Employment in Austin

According to a 2024 report by SmartAsset, a single Austenite needs to earn a $47.96 hourly wage or $99,757 annual salary to live comfortably. The same data suggests that a family of four needs $223,891 for the same quality of life. SmartAsset estimates salary needs based on the traditional 50/30/20 budgeting method, which designates 50% of your salary to needs, 30% to entertainment and hobbies, and 20% to pay debt, saving, and investing. 

For many workers, the average salary in Austin, TX, doesn’t meet SmartAsset’s estimates. Based on information gathered by jobs site Zip Recruiter, the average Austinite makes $39.00 hourly or $82,095 each year. 

Industries in Austin

The tech community has referred to Austin as “Silicon Hills” since the mid-1990s. Today, leading tech companies like Dell, Apple, IBM, Meta, and Google (to name a few) take up a lot of space in the local economy. 

Austin’s business landscape is diverse. Other leading industries include healthcare and pharma, venture capital, media, gaming, academia, and retail. Healthcare workers, federal workers, and managers and executives at big tech companies rake in six-figure incomes. 

Make the Move to Austin with Landing

Barbecue, live music, hill country, and incredible job opportunities — no wonder everyone wants to live in Austin. 

If you’re planning to call the Lone Star capital home, Landing has fully furnished apartments all across Austin. Our flexible leases and no hidden fees mean more money in your pocket so you’re always ready for a Tuesday night concert and food truck run. Become a Landing member to find your new home today.