Cost of Living in Lakeway, TX

With a cost of living index of 186, Lakeway, TX is one of the most expensive cities in the United States. Living here is 86% more expensive than the national average and 99% above the Texas state average of 88. Lakeway is a smaller community of 19,130 residents, where everyday costs can differ substantially from nearby larger cities.

Housing costs are the biggest factor in Lakeway's cost of living. The median monthly rent is $3,123 (137% above the US median of $1,319), and the median home value sits at $695,400 (128% above the national median of $304,900). At current prices, the median home costs roughly 4.2x the median household income — a moderately affordable ratio by today's standards.

The median household income in Lakeway is $164,978, which is 120% higher than the national median of $75,149. Residents spend roughly 23% 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 more than offset the higher cost of living.

Climate is another factor for anyone considering a move to Lakeway. The area sees an average annual temperature of 70°F, with summers averaging 85°F and winters around 54°F. Annual rainfall totals 36.3 inches spread over roughly 86 days. The mild climate is a draw for many residents and keeps utility costs moderate year-round.

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.