Once a quirky, hidden gem of the South, Austin has rapidly transformed into one of the nation’s most desirable cities to settle down in. Fueled by a booming tech industry, a vibrant arts scene, and the promise of no state income tax, the city has attracted thousands of new residents in recent years. But with skyrocketing housing prices, growing transportation demands, and the rising cost of living across the country, many are starting to ask: should I really move to Austin? How much does it cost to live in Austin, Texas? Is it as expensive to live in Austin as it is to live in other cultural powerhouses?
In this post, we’ll break down all the major expenses in Austin to help you decide if the city’s charm is worth the price tag.
Housing
Austin’s housing market has entered a cool-down phase in 2025, offering a rare window of opportunity for both buyers and renters. According to Zillow, the average cost for a home in Austin, Texas is $523,769, which is 6.5% lower than it was last year. Of course, prices vary across neighborhoods. Central Austin neighborhoods and downtown are typically more expensive, while suburbs generally hover around $400,000 or lower.
If you’re a renter, the average cost for a one-bedroom in Austin, Texas is roughly $1,600 per month, while two-bedrooms average closer to $2,000–$2,500 per month. There is less competition and more availability than you’ll find in many major cities, so renters wield more negotiation power—though rent remains above pre‑pandemic levels in most of the city.
“The cost of living in Austin is lower than some major cities like San Francisco or New York. However, for someone like me who’s been living here for a while, the increases are hardly noticeable, though I’ve seen friends struggle to find reasonably priced apartments or houses, especially near downtown. That said, the city’s vibrant culture, job opportunities, and tech boom make it worth considering, but it’s no longer the hidden gem it once was. For anyone thinking of moving here, it’s important to weigh the cost of living against the potential career benefits, as Austin’s affordability factor isn’t what it used to be.”
Nikita Sherbina, Co-Founder & CEO at AIScreen
Utilities
The cost of basic utilities in Austin (electricity, water, garbage, heating, and cooling) averages around $170/mo. Electricity bills will be at their highest during the sweltering Texas summers and comparatively modest over the winters. Depending on your needs, the monthly water bill could be anywhere from $20 to $70.
Many residents express frustration that a large portion of their bills—sometimes 30 % or more—comes from fixed administrative fees and city surcharges that aren’t reflections of their individual usage amounts. That means even if you live conservatively, you will still pay a monthly minimum.
Food
Grocery costs in Austin hover slightly above the national average. A single person living alone can expect to shell out $150-200 for their monthly grocery runs, while a larger family is likely looking at a $300+ grocery bill. Many locals aim to save by buying in bulk from businesses like Costco or Texas staples like H-E-B.
Dining out can range from budget-friendly to exorbitant—fast‑casual combos cost about $10–12 while mid‑range dining for two can top $75 or more. In Austin, you’ll find many food trucks sporting Tex-Mex cuisine you won’t find anywhere else, all typically safe for your budget.
Healthcare
The cost of healthcare in Austin, Texas varies significantly based on the type of service and provider, but Forbes magazine ranks healthcare prices in Texas as among the highest in the country. Without insurance, doctor visits typically cost $100–200, while emergency room visits will likely be in the thousands, depending on the type of treatment you receive.
Monthly prescription costs vary, but for name-brand prescription drugs, you could easily be looking at $100-300 per month.
Transportation
Getting around in Austin can be a bit of a headache. For the vast majority of residents, a car is the default mode of transportation. Austin is full of sprawling suburbs where public transit options are very limited, and gas prices and parking fees add up quickly. While rideshares like Uber and Lyft are widely available in Austin, relying on them daily quickly gets expensive. On the flip side, biking is gaining traction, thanks to new bike lanes and trails, especially around central neighborhoods.
Goods & Services
Basic items like clothes, household supplies, and personal care products are marginally more expensive in Austin than the national average, reflecting the growing demand from recent years’ influx of new residents. Services like haircuts, dry cleaning, and gym memberships also tend to be slightly pricier, particularly in the trendier downtown neighborhoods.
One of the most expensive services in Austin, Texas is childcare. Austin is considered a “child care desert,” meaning the number of children under five years of age outnumbers available licensed childcare providers by 3:1. If you’re a childfree professional, this might not be anything to worry about, but for young parents or anyone interested in starting a family, this is a major expense to keep in mind if you’re considering moving to Austin.
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Income
Income in Austin has seen steady growth in recent years, largely driven by the city’s expanding tech sector. The average salary is higher in Austin than it is in many parts of the country. Tech workers and those in healthcare or finance tend to earn a solid six figures, but people working in education, performing service jobs, and artists often find it harder to keep up. Freelancers and remote workers also make up a growing slice of the population, and their earnings vary wildly.
For many Austinites, affordability is less about what you bring in than it is about how you spend it. That is, which parts of the city you choose to settle in and spend your time in.
Conclusion
The cost of living in Austin, Texas reflects the city’s evolution from a laid-back college town to a thriving tech and cultural hub. While there are still pockets of affordability—particularly when compared to cities like San Francisco—unpredictable utility fees and higher-than-average costs for groceries, healthcare, and everyday services can make budgeting a real challenge. At the same time, growing income opportunities and a diverse economy offer potential for those in the right industries.
So, is it expensive to live in Austin, Texas? The answer depends on your lifestyle, income, and expectations. And if you’re set on making the move to Austin, there are plenty of ways to make the move more affordable.
FAQs
Austin is more expensive than many parts of Texas, but Dallas is the most expensive metropolitan city in Texas on average. Though it is more expensive to live in Austin than in more rural parts of Texas, it’s not the most expensive major city.
To keep up with the cost of living in Austin, Texas, a single person typically needs to earn around $60,000–$70,000 annually to live comfortably. For families, a combined income of $100,000 or more is necessary to cover major expenses without stress.
People are drawn to Austin for its unique blend of opportunity, culture, and quality of life. It offers a thriving job market—especially in tech and creative industries—paired with a laid-back, outdoor-friendly lifestyle. The cost of living in Austin has grown in recent years, but many find the city’s character well worth the expense!
J. Dailey has an English degree with a focus in technical writing. When not busy blogging, find J. Dailey hiking, playing tabletop games, or spending time with cats.
