A+
10%
Overall NAT. AVG.
0%
Goods & Services NAT. AVG.
31%
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 Minnesota National
Cost of living9099100
Goods & Services100100100
Groceries9598100
Health care100109100
Housing69100100
Transportation9697100
Utilities10493100

An Overview of Cost of Living in Austin, MN

The cost of living in Austin affects the quality of life one can afford in this new location. It allows people to assess whether they can maintain their preferred lifestyle, including housing, leisure activities and dining options. Your total monthly expenditures can varry depending on the area, as well as many other factors. The cost of living in Austin is 90, which is 10% lower than the national average. Knowledge of the cost of living can help individuals make informed decisions about retirement savings, investments, and financial goals.

In Austin, daily expenses such as food, housing, goods and services, transportation and health care are in line with comparable areas and about average when compared to all cities across the nation. This ensures that the cost of living in Austin will resemble that of an average city, contributing to a manageable cost of living.

Is Austin Affordable?

Is Austin an affordable place to live? That's a valid question to ask when you're thinking about moving to a new city. After all, how much it costs to live somewhere can be a huge factor in your decision. Affordability can be broken down into 3 common categories. The cost of living index (we talked about it earlier), housing expenses and income levels all play a big role in figuring out if a place is affordable. For instance, in Austin, the median home price is 38.2% lower than what most folks pay across the country, and monthly rent prices are 14.1% lower than the usual rates. Income levels in Austin come in at $48,730, which is 11.9% lower than the national average.

What Factors can Influence the Cost of Living in Austin?

Taxes: Cities that impose higher taxes, including sales and income taxes, can contribute to an escalated cost of living. The added expense of taxes on everyday goods like clothing and food naturally results in higher overall costs. Similarly, a higher income tax rate can further elevate the cost of living. In Austin, the general sales tax rate starts at 6.875%, and income tax rates begin at 5.35%.

Housing: When everyone's vying for homes in popular areas, it drives up property prices and rents, making the overall cost of living surge. On the flip side, in less sought-after locales, where housing demand is low, prices tend to dip, resulting in a more economical cost of living. In Austin, the housing index comes in at 31% lower than the national average.

Urbanization: Larger, urban areas boasting abundant amenities and robust employment prospects often exhibit a heightened cost of living, driven by the increased demand for services and residential relocation. Consequently, this leads to elevated home prices and higher rental rates. In contrast, sparsely populated rural locales or regions marked by diminished demand typically offer a more limited range of amenities and experience slower job market expansion. This translates into a more affordable cost of living.

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 9% lower than the Minnesota average
  • The cost of living in Austin is 10% lower than the national average
  • Austin housing is 31% lower than the national average
  • Minnesota general sales tax is 35% higher than the national average
  • Minnesota state income tax is 106% higher than the national average

Most Affordable Places to Live in and Around Austin

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Compare Austin, MN 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$63,558$5,297$1,483$1,907
      Renters$29,025$2,419$677$871
      A good indicator of the general affordability of housing in Austin, MN, is the percentage of monthly income that should be spent on housing expenses, otherwise known as the debt-to-income ratio (DTI). Generally speaking, no more than 28 percent of your total gross income should be spent on your housing expenses and not more than 36 percent of your gross income on total expenses, including debts. In Austin, the median monthly income is $63,558 for those who own their own homes. Under the standard rule, that income level would allow for $1,483 to be budgeted for housing expenses each month, at the most. Renters, on the other hand, earn about $29,025, per the median income in the area. That would allow for renters to spend up to $677 on monthly rental expenses.

      Minnesota Sales Tax

      State General Sales Tax With Max Surtax
      Minnesota 6.875% 7.875%

      Minnesota Income Tax

      State Income Tax (Low) Income Tax (High)
      Minnesota 5.35% 9.85%

      Goods & Services

      Item Austin National avg. Difference
      Haircut $32.91$24.2635.6%
      Beauty Salon $35.27$45.5622.6%
      Toothpaste $3.74$3.701.1%
      Shampoo $1.24$1.283.0%
      Movie $10.32$12.1315.0%
      Bowling $10.28$18.0042.9%

      Groceries

      Item Austin National avg. Difference
      Ground Beef $5.27$5.849.7%
      Fried Chicken $1.42$1.579.8%
      Milk $4.56$4.672.4%
      Potatoes $5.01$4.931.6%
      Pizza $11.94$12.091.3%
      Beer $9.82$10.415.7%

      Health Care

      Item Austin National avg. Difference
      Optometrist $87.93$125.6830.0%
      Doctor $153.18$135.7812.8%
      Dentist $105.03$113.297.3%
      Ibuprofen $10.25$10.653.8%
      Lipitor $501.86$468.607.1%

      Housing

      Item Austin National avg. Difference
      Home Price $114,100.00$184,700.0038.2%
      Avg. Mortgage Payment $2,232.06$2,346.694.9%
      Apartment Rent $815.00$949.0014.1%

      Transportation

      Item Austin National avg. Difference
      Gasoline $3.39$3.462.1%
      Tire Balancing $54.83$59.928.5%

      Utilities

      Item Austin National avg. Difference
      All Electricity $209.45$193.998.0%
      Phone $187.72$192.252.4%
      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.
      Mona, IA39991.0%
      Otranto, IA0991.0%
      Meyer, IA13991.0%
      Myrtle, MN697723.2%
      Mapleview, MN1427821.6%
      Austin, MN25,1809010.0%

      Cities with similar population

      City Population Cost of Living Index National Avg.
      Haines City, FL25,178963.9%
      Caledonia, WI25,1821054.6%
      Homewood, AL25,17012323.0%
      Palm Springs, FL25,1681022.1%
      Fountain Hills, AZ25,16713837.6%
      Austin, MN25,1809010.0%
      Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.