B-
20%
Overall NAT. AVG.
4%
Goods & Services NAT. AVG.
78%
Housing NAT. AVG.
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Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.
The cost of living index is based on a national average of 100. For example, if the cost of living is 90, then it is 10% lower than average. If the cost of living is 110, then it is 10% higher than average. The breakdown for each index is as follows: goods & services (33%), groceries (13%), health care (5%), housing (30%), transportation (9%) and utilities (10%). If the cost of living data was unavailable for this city, estimates based upon nearby cities were used.
Index Austin Texas National
Cost of living12092100
Goods & Services9696100
Groceries9896100
Health care9894100
Housing17883100
Transportation8992100
Utilities95104100

An Overview of Cost of Living in Austin, TX

Are you thinking about relocating, but curious about the potential cost of living in Austin? Is it more expensive or more affordable than average? Based on the most recent report, the cost of living in Austin stands at 120, making it 20% higher than the national average. The cost of living directly affects the affordability of one's desired lifestyle. Knowing the cost of housing, transportation, groceries and other essentials in the new area allows people to gauge whether they can maintain their preferred standard of living.

If affordability is among your top priorities when searching for a new place to live, this area may not be the ideal fit, as the cost of living in Austin is among the most expensive in the United States. Just a minority of areas exhibit a cost of living at least 20% higher than the national average, and unfortunately, Austin falls into this category, which may not align with your goal of finding a budget-friendly living environment.

Housing costs significantly influence the Austin cost of living index, typically accounting for a substantial portion of one's post-tax income. Regrettably, within this particular region, expenses related to both residential ownership and renting exceeded those observed in an average city by 78.5%. This entails elements such as housing and rental prices, mortgage interest rates and insurance costs.

What Do Locals Say About the Cost of Living in Austin?

Locals have the inside scoop on their city. So, we polled 33 residents in Austin to learn how they view the cost of living. We asked how they felt about the cost of living in their area, and if they thought that prices were increasing, decreasing or staying the same. The verdict? 15% find it reasonable with decreasing prices, but 85% think it's quite pricey, with prices that continue to rise.

Is Austin Affordable?

Is Austin affordable? This is a pivotal question, especially when mulling over a move, as affordability carries substantial weight in your decision-making process. Factors such as the cost of living index (discussed earlier), housing expenses and income levels all contribute to a location's affordability. For instance, in Austin, the median home price is 94.2% higher than the national average and monthly rent prices are 41.8% higher than the typical rates. Additionally, the median income levels play a role in affordability, with Austin boasting a median household income of $75,752, 36.9% higher than the national average.

What Factors can Influence the Cost of Living in Austin?

Transportation: In situations where public transportation is limited or nonexistent, local residents may be required to own and maintain their own vehicles, contributing to an elevated cost of living. Monthly expenditures may encompass fuel costs, insurance premiums, routine vehicle upkeep and possibly lease or financing payments. In Austin, the transportation index is 11.3% lower than the national average.

Groceries: The costs associated with groceries have witnessed substantial increases over the past 2-3 years. In select markets, food prices have escalated by more than 20% during this timeframe, whereas others have seen more restrained upticks. The variances in food expenses can exert a considerable influence on the overall cost of living in a given locale. In Austin, the groceries index is 2.4% lower than the national average.

Housing: Elevated demand for housing within coveted locales has the propensity to escalate both property values and rental rates, thereby serving as a primary catalyst for an augmented cost of living. Conversely, areas witnessing diminished housing demand, particularly within less desirable environs, often experience an inversely proportional effect, leading to price reductions and subsequently contributing to a more modest cost of living. In Austin, the housing index is 78.5% higher than the national average.

Where is the Data From?

The cost of living in Austin, presented above is derived from the C2ER cost of living index, offering a practical method for assessing living cost disparities in urban areas. Published quarterly, this index compiles data from more than 300 independent researchers, encompassing over 60 goods and services in 6 categories. The weightings assigned to cost variances are informed by government survey data tracking the expenditure patterns of professional and executive households. It should be noted that the C2ER index does not include data on sales or income tax rates, however, AreaVibes incorporates tax rates into the overall cost of living score for each area.

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Cost Of Living Quick Facts

  • The cost of living in Austin is 30% higher than the Texas average
  • The cost of living in Austin is 20% higher than the national average
  • Austin housing is 78% higher than the national average
  • Texas general sales tax is 22% higher than the national average
  • Texas state income tax is 100% lower than the national average

Most Affordable Places to Live in and Around Austin

See all the best places to live around Austin

Compare Austin, TX Cost of Living

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      Salary Calculator

      This is how much you would need to earn in
      Price difference in compared to
      Cost of living index
      Goods & Services index
      Groceries index
      Health care index
      Housing index
      Transportation index
      Utilities index

      Median Income & Debt-To-Income Ratio

      Median Income Per Year Per Month Max Budget (28% DTI) Max Budget (36% DTI)
      Owners$112,122$9,344$2,616$3,364
      Renters$55,640$4,637$1,298$1,669
      The affordability of the housing market in Austin, TX as well as the overall cost of living can be predicted by what percent of the monthly income is spent on housing related costs. This is konwn as the debt-to-income ratio (DTI). The overall rule of thumb is that no more than 28% of your gross income should be spent on the overall costs related to housing and no more than 36% of gross income on all expenses and debts. Among Austin homeowners, the median income is $112,122. This indicates that a monthly maximum of $2,616 should be spent by homeowners on all housing related costs. Renters have a median income of $55,640. This indicates that renters would have a maximum of $1,298 for their rent related monthly costs.

      Texas Sales Tax

      State General Sales Tax With Max Surtax
      Texas 6.25% 8.25%

      Texas Income Tax

      State Income Tax (Low) Income Tax (High)
      Texas 0% 0%

      Goods & Services

      Item Austin National avg. Difference
      Haircut $30.11$24.2624.1%
      Beauty Salon $53.43$45.5617.3%
      Toothpaste $3.66$3.701.1%
      Shampoo $1.23$1.283.9%
      Movie $12.82$12.135.7%
      Bowling $18.22$18.001.2%

      Groceries

      Item Austin National avg. Difference
      Ground Beef $5.49$5.846.0%
      Fried Chicken $1.67$1.576.2%
      Milk $4.64$4.670.7%
      Potatoes $4.87$4.931.2%
      Pizza $9.57$12.0920.8%
      Beer $10.18$10.412.3%

      Health Care

      Item Austin National avg. Difference
      Optometrist $117.38$125.686.6%
      Doctor $108.42$135.7820.1%
      Dentist $124.98$113.2910.3%
      Ibuprofen $10.52$10.651.2%
      Lipitor $504.11$468.607.6%

      Housing

      Item Austin National avg. Difference
      Home Price $358,600.00$184,700.0094.2%
      Avg. Mortgage Payment $2,434.44$2,346.693.7%
      Apartment Rent $1,346.00$949.0041.8%

      Transportation

      Item Austin National avg. Difference
      Gasoline $3.06$3.4611.7%
      Tire Balancing $53.75$59.9210.3%

      Utilities

      Item Austin National avg. Difference
      All Electricity $172.60$193.9911.0%
      Phone $200.15$192.254.1%
      Although the cost of living data is updated regularly, this cost of living information is to be used as estimates only as prices can change on an ongoing basis.

      Nearby cities with low cost of living

      City Population Cost of Living Index National Avg.
      Lago Vista CDP, TX71946.0%
      Mustang Ridge, TX1,229945.5%
      Garfield, TX2,506963.5%
      Webberville, TX3951000.4%
      Hornsby Bend, TX8,5531022.1%
      Austin, TX965,87212020.2%

      Cities with similar population

      City Population Cost of Living Index National Avg.
      Jacksonville, FL902,488982.0%
      San Jose, CA1,029,409208108.2%
      Fort Worth, TX892,2211055.2%
      Columbus, OH889,079946.2%
      Edmonton, AB1,053,392n/a 
      Austin, TX965,87212020.2%
      Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.