Cost of Living in Austin, TX

With a cost of living index of 127, Austin, TX is a notably expensive place to live. Living here is 27% more expensive than the national average and 39% above the Texas state average of 88. As a major city with a population of 967,862, Austin offers a wide range of housing options, employment opportunities, and urban amenities.

Housing costs are the biggest factor in Austin's cost of living. The median monthly rent is $1,655 (25% above the US median of $1,319), and the median home value sits at $512,700 (68% above the national median of $304,900). At current prices, the median home costs roughly 5.6x the median household income — a stretch for many buyers, though not uncommon in today's market.

The median household income in Austin is $91,461, which is 22% higher than the national median of $75,149. Residents spend roughly 22% of household income on rent. This is a comfortable ratio, well below the 30% threshold that financial experts recommend as a maximum. While incomes are above average, they do not fully offset the higher cost of living.

Everyday prices in the Austin-Round Rock-San Marcos, TX (Metropolitan Statistical Area) metro area are generally below the national average. Out of 6 common items tracked by the Bureau of Labor Statistics, 6 are priced lower than the US average. These real-world prices — from groceries to electricity — add up and should be factored into any cost of living comparison.

Data sources: US Census Bureau (ACS 2023), Zillow Home Values, HUD Fair Market Rents, BEA Regional Price Parities, BLS Average Prices, and NOAA Climate Normals. Updated monthly.