Austin is the “Live Music Capital of the World”, the Silicon Hills, and the land of breakfast tacos and barbecue. The diverse cultures and comfortable living conditions have led more and more people to regard this place as an ideal place to live. Of course, it’s not just because of these titles. The most crucial point is that the living expenses here are relatively affordable. The cost of living in Austin, Texas, is 4% higher than the state average but 4% lower than the national average. Compared with big cities, Austin is a budget-friendly city for you to explore.
Whether you are a student heading to UT Austin or a young professional chasing a tech career, this comprehensive guide will break down exactly how much it costs to live comfortably in Austin in 2025.
Is Austin Expensive to Live?
The short answer: It depends on your lifestyle. The Austin cost of living is 4% above the state average, driven by higher median home prices and rents, making it one of the most expensive cities in Texas. But compared with the national average, the cost of living is 4% lower. Compared with big cities like NYC, Los Angeles, and Chicago, Austin’s prices are much lower, making it a budget-friendly city.
| Cost of Living in Austin, TX | Compared to State Average | Compared to National Average |
|---|---|---|
| Housing (Buy and Rent) | 24% higher | 1% higher |
| Utilities (Monthly) | 4% lower | 1% lower |
| Food | 1% higher | 4% lower |
| Healthcare | 3% lower | 5% lower |
| Transportation | 1% lower | 5% lower |
| Goods & Services | 4% lower | 8% lower |
What this means for you: Your daily expenses, including food, travel, and entertainment, etc., might actually be cheaper than the national average. The real challenge lies in the housing market, which costs significantly more than the rest of Texas. This sharp contrast makes finding the right rental deal the most critical part of your move.
Cost of Living in Austin, Texas: Overview
A person’s monthly cost of living in Austin, TX, ranges from $2,700 to $4,700. Of this, 50% is allocated to essential costs such as housing, food, and entertainment, 20% to savings or debt repayment, and 30% to additional costs. The following is the budget breakdown:
| Item | Price |
|---|---|
| Housing (rent + utilities) | $1,650-$2,450 |
| Groceries | $300-$500 |
| Transportation | $100-$300 |
| Medical insurance | $200-$400 |
| Catering and entertainment | $150-$400 |
Housing & Rental Market: The Biggest Expense
When you start to break down the Austin, Texas, cost of living, you will find that housing costs account for a large part of your expenses. Whether you are a student renting a house near the campus or a professional renting in the city center, you should expect about 30% of your total monthly expenses to be spent on housing. For students aiming to live near campus, this percentage might be higher, closer to 40-50%. The latest data shows that housing prices in Austin are 3% higher than the national average. Of course, this also indicates that the city is quite popular. The high expenses and the large proportion they take up prompt you to find an apartment that offers good value for money to balance your budget.
Austin Home Purchase Prices and Property Taxes
House prices in Austin are high. Although they are not soaring as they were a few years ago, the average price still reaches $501,645 (the national average house price is $518,961). If you want to buy a house, you will face a better mortgage loan and an annual property tax of about 1.8%. When it comes to community selection, housing prices in Austin’s eastern and northern parts are more affordable. At the same time, those in the central and downtown areas are higher but closer to workplaces and entertainment venues.
| Buy Apartment | Price |
|---|---|
| Price per Square Feet to Buy Apartment in City Center | $642.73 |
| Price per Square Feet to Buy Apartment Outside of Center | $286.99 |
Average Monthly Rent Across Austin Neighborhoods
Renting a house is a more cost-effective choice for living. The average monthly cost of purchasing a home in Austin is 141% higher than the monthly rent. Overall, the average monthly rent in Austin is $1,829, while the national average is $1,559. Of course, its price may vary by region and room type.
| Rent Per Month | Price |
|---|---|
| 1 Bedroom Apartment in City Centre | $2,188.30 |
| 1 Bedroom Apartment Outside of City Centre | $1,426.62 |
| 3 Bedroom Apartment in City Centre | $4,041.90 |
| 3 Bedroom Apartment Outside of City Centre | $2,622.29 |
Student Housing in Austin
Moving to Austin to study at UT Austin? Finding an affordable, comfortable apartment is key to balancing your studies and social life. uhomes.com is an authoritative student apartment rental platform with a Trustpilot rating of 4.9/5, dedicated to helping students find their ideal home away from home. The following is an overview of the rents for our different apartment types:
| Room Types | Price |
|---|---|
| Single Room | $300-$2,300 |
| Shared Room | $300-$1,900 |
| Studio | $300-$2,300 |
| 1B apartments | $300-$1,500 |
| 2B apartments | $750-$1,500 |
| 3B apartments | $750-$1,500 |
| 4B apartments | $750-$1,500 |
| 5B+ apartments | $750-$1,500 |
Utilities & Monthly Bills in Austin
Utilities expenses are also an indispensable part of the Austin, TX cost of living. For an average Austin family, the monthly cost of public utilities is around $300-$400. If you are a student, such fees would be relatively low.
| Utilities (Monthly) | Price |
|---|---|
| Basic Utilities for 915 Square Feet Apartment (Electricity, Heating, Cooling, Water, Garbage) | $181.77 |
| Mobile Phone Plan (Monthly, with Calls and 10GB+ Data) | $53.96 |
| Broadband Internet (Unlimited Data, 60 Mbps or Higher) | $67.76 |
Such expenses can fluctuate with factors such as seasons and lifestyle, especially electricity bills. The summer in Austin is extremely hot, and people often use air conditioners, which also leads to a 30-50% increase in electricity bills from May to September. Natural gas costs will also decrease as households fully electrify. To cut costs, many residents reduce their living expenses by using energy-efficient appliances, installing smart thermostats, or enrolling in Austin Energy’s time-of-use plans.
Food Prices: Grocery vs. Dining Out
As part of living expenses, food costs are 4% below the national average, making this a very budget-friendly item. You can plan this part of the expenditure based on your living habits. If you want to save money, we recommend cooking your own meals. It’s not only healthy but also less costly.
The Cost of Grocery
For a single person who cooks mainly at home, a realistic monthly grocery budget ranges from $350 to $450. Here are the approximate prices of the food we offer for your reference:
| Food | Price |
|---|---|
| Milk (Regular, 1 Liter) | $1.01 |
| Fresh White Bread (1 lb Loaf) | $3.09 |
| Eggs (12, Large Size) | $5.06 |
| Local Cheese (1 lb) | $5.69 |
| Chicken Fillets (1 lb) | $5.39 |
| Apples (1 lb) | $2.17 |
| Tomatoes (1 lb) | $1.70 |
| Potatoes (1 lb) | $1.28 |
| Onions (1 lb) | $1.20 |
| Domestic Beer (16.9 oz Bottle) | $2.72 |
Grocery Costs at HEB vs. Whole Foods
HEB and Whole Foods are the most common grocery chains in Austin and are the go-to for most residents. So which one is more budget-friendly? In Austin, HEB’s daily grocery prices are usually much lower than those at Whole Foods. Although Whole Foods offers organic or specialty products, HEB is more affordable and the highest-rated, most affordable choice in Texas.
The Cost of Eating Out
Austin boasts a diverse culinary culture, with a wide variety of restaurants and a broad price range. Single people spend around $150- $250 a month on dining out, while families spend relatively more.
| Restaurants | Price |
|---|---|
| Meal at an Inexpensive Restaurant | $20.00 |
| Meal for Two at a Mid-Range Restaurant | $80.00 |
| Fast-Food Meal | $11.00 |
Affordable Dining Styles in Austin
- Food truck: This is a convenient and cost-effective dining option and an indispensable part of People’s daily lives. It mainly costs $10-$15 for a meal.
- Breakfast tortillas: A classic breakfast in Austin at an affordable price ($3-$5).
- Barbecue and Mexican cuisine: Local classic dishes with a wide range of prices
- High-end casual restaurant: Excellent service, high-end, and formal dining experience.
Transportation: Gas, Insurance & Public Transit
Transportation costs in Austin are 5% lower than the national average, and the share of these costs in your cost of living in Austin, Texas, depends on your mode of transportation. In this city, driving is the mainstream mode of transportation. Of course, for students or people with limited budgets, public transportation is economical and popular.
Public Transportation Costs
Public transportation in Austin is economical and can save people a lot of money. Meanwhile, cycling and carpooling are also very popular, and new bike lanes have been built in the city center.
| Transportation | Price |
|---|---|
| One-Way Ticket (Local Transport) | $1.38 |
| Monthly Public Transport Pass (Regular Price) | $41.25 |
| Taxi Base Fare (Standard Fare) | $2.50 |
| Taxi 1 mile (Standard Tariff) | $2.51 |
| Taxi 1 Hour Waiting (Standard Tariff) | $0.72 |
CapMetro Fares for Students
CapMetro offers significant student discounts to a large number of higher-education students in Austin, helping them save on transportation costs. Students at the University of Texas can ride most buses and light rails for free with their student ID cards, and college or primary and secondary school students can enjoy discounted fares (75 cents). Students can also pay the annual fee for bike-sharing services at half price. If you are a UT Austin student, you can enjoy unlimited 30-minute rides for just $30. In addition, the ACC semester Green Pass can also be used.
Car Ownership Costs in Austin
If you own a car, you’ll incur many expenses each month. The average monthly cost of a new vehicle exceeds $1,000, including depreciation, fuel, insurance (about $250 per month in Austin), maintenance, and other expenses. Such fees also vary depending on the vehicle model, loan term, and driving habits. Some parking lots in the city center charge more than $150 per month.
| Transportation | Price |
|---|---|
| Gasoline (1 Gallon) | $2.76 |
| Volkswagen Golf 1.5 (or Equivalent New Compact Car) | $36,232.00 |
| Toyota Corolla Sedan 1.6 (or Equivalent New Mid-Size Car) | $26,041.96 |
Healthcare & Insurance: Medical Expenses and Coverage
Medical insurance is the most important and expensive part of the cost of living. The medical insurance expenditure in Austin is reasonable. Although such expenses are not low, wise planning will help you save some of them as much as possible.
Medical Expenses & Routine Care
Austin boasts world-class medical facilities, including Ascension Seton Medical Center and St. David’s Medical Center. For daily issues, the cost is reasonable relative to national standards.
| Item | Price |
|---|---|
| Doctor Visit | $123.58 |
| Dentist Visit | $135.45 |
| Optometrist Visit | $115.84 |
| Prescription Drug | $16.26 |
| Ibuprofen | $11.27 |
Health Insurance for Students and Renters
For international students and new immigrants, health insurance is generally mandatory and can help you avoid financial risks associated with medical care.
- University Health Insurance (UT SHIP): If you are a student at the University of Texas at Austin, you will participate in the Student Health Insurance Plan (SHIP). This provides excellent insurance for fixed semester fees, covering access to most university health Services (UHS) on campus with almost no out-of-pocket expenses.
- Private insurance: If you are not a student or you are working, you may obtain insurance through your employer. For freelancers, it is essential to review the Marketplace plan to avoid unexpected high bills.
Entertainment: Austin on a Budget
Austin boasts a diverse and vibrant cultural atmosphere, with entertainment activities everywhere. This city often hosts vibrant live music festivals, offering you unforgettable living experiences. Meanwhile, a variety of art installations, museums, sports competitions, and more are available. If you really enjoy this kind of activity, then your Austin cost of living might be quite considerable. Therefore, it is essential to make a budget for leisure activities! Austin offers many free or discounted entertainment options to help you save money.
| Item | Price |
|---|---|
| Movie ticket | $13.37 |
| Outdoor activities (Zilker Park, Lady Bird Lake) | $0.00 |
| Live music | $150.00 |
| Yoga | $21.84 |
| Beauty salon | $62.94 |
What salary do you need to live in Austin?
If you want to lead a comfortable life in Austin, your annual income is between $100,000 and $115,000. For a family of four, the cost of living is relatively high, and the yearly income required may exceed $230,000. Your Austin, Texas, cost of living varies depending on lifestyle. If you are a thrifty single person, an annual income of $50,000 to $70,000 is also acceptable. But such a price cannot handle unexpected situations in life or offer greater enjoyment. In conclusion, if you want a solid financial foundation in Austin, aim for a six-figure annual salary. Otherwise, you need to save in all aspects of life, including, but not limited to, choosing a house far from the city center and seeking various discounts.
FAQ
What is the average salary in Austin Texas?
Recent data indicate that Austin’s average hourly wage is around $34.32, with median personal income ranging from $65,000 to $86,000. Among them, industries such as technology and management have relatively high hourly wages, averaging $69.32 per hour, thereby raising the overall average hourly wage.
How much money do I need to move to Austin?
The moving cost will be at least $2,500, and your annual income will need to be approximately $114,000 to live comfortably in Austin. Of course, if you strictly control your budget for rent and daily necessities, you can also lead a relatively comfortable life.
Is $70,000 a good salary in Texas?
Yes, $70,000 is a decent salary in Texas. It is usually at the median income level and can bring you a comfortable life. But its comfort level largely depends on the city you are in and your lifestyle. It is very comfortable for single people in areas with a lower cost of living. But for an individual or family living in Austin. $70,000 might make your living expenses relatively tight, so you need to budget carefully.
What is considered upper class in Texas?
In Texas, the “upper class” is generally defined as families with annual incomes ranging from $216,000 to over $300,000. However, it also involves considerable net assets, property/investment, and lifestyle factors such as getting into prestigious schools, which set it apart from the high income of a low-cost state like Texas. Some studies suggest that a family of four needs at least $216,000, while others indicate that upper-class families need between $250,000 and $300,000, and the starting salary for the top 10% of families is around $260,000.
What is the highest paying job in Austin, Texas?
In Austin, Texas, the highest-paying jobs are typically in technology (software engineers, data scientists), healthcare (nurses, doctors, therapists), and senior management/executive positions (CEOs, directors), as well as lucrative sales (solar/residential) and professional industries (electricians/building managers). The highest annual salary in these fields exceeds 150,000 to 200,000 US dollars.
