Curious about the cost of living in Austin, TX? We've got you covered! With its vibrant culture, booming tech scene, and affordable housing, Austin is a hot spot that continues to draw new residents. So, if having a home in the “Live Music Capital of the World” appeals to you, let’s delve into the cost to live in Austin, TX, from housing and salaries to daily essentials and beyond.

Summary:

• Cost of Living in Austin, TX
• Comparing Average Home Prices and Rent Costs in Austin, TX
• Other Living Expenses in Austin, TX
  • Grocery Shopping and Dining Out in Austin
  • Transportation Options and Fuel Costs in Austin
  • Healthcare and Insurance Costs in Austin
  • Utilities, Internet, and Phone Expenses in Austin
  • Tax Rates in the Austin Area
  • Recreation Costs in Austin, Texas
• Average Salary in Austin, TX
• Average Cost of New Construction Homes in Austin by Neighborhood
• Conclusion

Cost of Living in Austin, TX

According to March 2024 data from the Council for Community and Economic Research (C2ER), the Austin cost of living compared to the national average is 1% lower. However, C2ER also reports the city is 9% higher in housing costs, though utility costs in Austin are more budget-friendly at 6% lower than the national average. Compared to the rest of the Lone Star State, the overall Austin cost of living index is 7% higher. 

As for childcare, Care.com® reports that as of March 2024, the average base rate for childcare providers stands at $20.50 per hour, translating to a weekly cost of $820 and a monthly expense of approximately $2,665 for 130 hours of dedicated care. 

Given the Austin, Texas, cost of living index numbers, you may wonder how much you need to earn to live in Austin. The Living Wage Calculator from MIT® reports that a single adult with no children needs an average living wage of $23.98 an hour, or $43,247 annually after taxes as of February 2024. For a household of two children and two working parents, each adult requires around $26.91 an hour or a combined annual income of $101,020 after taxes.

Comparing Average Home Prices and Rent Costs in Austin, TX

In terms of the monthly cost of living in Austin, TX, housing is the highest expense associated with the cost of living in Austin. According to the Realtor.com® February 2024 housing market report, the median listing home price in Austin was $639K, though the median sale price was $499.4K. 

In addition to this favorable housing cost, Austin, Texas, has an average home size of 2,092 square feet, according to a Filterbuy® report in 2021. That’s 200 square feet larger than the national average, so you get more room to live, play, and share with friends and loved ones. 

For those who choose to rent instead of own, you can expect an average monthly rent in Austin at around $1,753, according to RentCafe® as of March 2024.

Other Living Expenses in Austin, TX

Now, let’s look at the Austin living expenses for everyday essentials like groceries, transportation, healthcare, utilities, taxes, and, of course, for some fun and recreation.

Grocery Shopping and Dining Out in Austin

Naturally, having a well-stocked kitchen is a must. So, let's dive into what it takes to fill your pantry and indulge in dining out in this food-centric city. 

According to RentCafe data from March 2024, Austin residents pay approximately 2% less than the national average. Here's a quick rundown of the food prices you can expect to encounter based on these findings: 

• A gallon of milk: $4.64
• A carton of eggs: $3.91
• A pound of potatoes: $4.98
• A loaf of bread: $3.93 

With grocery costs on the lower side, you'll find more wiggle room in your wallet to explore Austin's incredible food scene. Various sources indicate that in 2023, a date night for two at a mid-range restaurant typically falls within the range of $87 to $100. 

Overall, food expenses come to about $4,100 annually for a single adult, whereas a household of four can expect to shell out around $12K annually, per February 2024 data from MIT.

Transportation Options and Fuel Costs in Austin

You’ve got options when it comes to getting around in Austin. For those who drive a personal vehicle, a gallon of unleaded gas in Austin is approximately $3.07, according to AAA® in March 2024, a steal compared to other areas like California, where gas hovers around $5 a gallon. 

No matter what type of vehicle you drive, keeping it in tip-top shape is just as important as keeping it fueled up. While service prices may fluctuate depending on the nature of repairs or maintenance required, March 2024 data from RentCafe suggests that an average service like a tire rotation could cost around $54 in Austin. 

However, if you prefer to leave the driving to someone else, Austin's CapMetro Bus System offers a convenient alternative. Per CapMetro’s website, you can snag a one-day pass for $2.50, while a monthly pass runs $41.25, an affordable option for navigating the city hassle-free. 

Overall, transportation expenses tally up to approximately $10K annually for one individual, while a household of four can anticipate spending roughly $17K per year, per MIT.

Healthcare and Insurance Costs in Austin

Among Austin, Texas, living expenses, healthcare services play a significant role in your budget. From routine check-ups to dental care, these services in Austin are approximately 2% lower than the national average but 5% higher than the state average, according to RentCafe as of March 2024, which also offers this glimpse at the median fees for some healthcare appointments:  

• Doctor’s visit: $108.42
• Dental appointment: $124.98
• Optometrist visit: $117.38 

In total, medical costs average just under $3K annually for a single adult, whereas a household with two adults and two children pays around $10K annually, based on findings from MIT in February 2024.

Utilities, Internet, and Phone Expenses in Austin

Whether you're a homeowner or a renter, the Austin, Texas, price of living must include utility costs in your financial planning. The cost of utilities in Austin, TX, typically includes essential services such as energy, phone, and internet. According to data from RentCafe in March 2024, the average monthly energy bill hovers around $172, while phone services cost approximately $200. The good news is, compared to the national average cost of living, Austin, Texas, lands at about 6% lower for utilities and 8% lower than the state average, per RentCafe.

Tax Rates in the Austin Area

Navigating taxes, particularly as a new homeowner, can sometimes be confusing and overwhelming. So, it helps to understand tax costs no matter where you put down roots. 

As of November 2023, the Austin Chamber of Commerce website shares that the state's sales and use tax is 6.25% for tangible personal property and specific services. However, local jurisdictions, including cities, counties, and transit authorities, may impose additional sales tax rates, culminating in a maximum combined rate of 8.25%. 

According to the MIT February 2024 research, sales and use taxes add up to about $6.6K yearly for an individual, with a household of four incurring an estimated expenditure of $10.9K annually.

Recreation Costs in Austin, Texas

In addition to checking out the city’s amazing music scene, there are all kinds of things to do in Austin, TX. When it comes to entertainment costs and everyday services, expenses can vary, but the March 2024 data from RentCafe offers insight into what you might want to budget for your recreational activities: 

• Movie ticket: $12.82
• Yoga class: $18.22
• Men’s shirt: $28.80
• Trip to the salon: $53.43

Average Salary in Austin, TX

Given these everyday expenses in Austin, how much do residents typically earn in the city? ZipRecruiter® finds that, as of March 2024, Austin has a diverse salary spectrum, with most ranging between $49.6K and $87.6K annually and an average salary of $68.6K, which translates to approximately $33 per hour, $1,320 per week, or $5,723 per month. 

February 2024 data from MIT states that average salaries run from the low end of $33K yearly for cleaning and maintenance jobs to $128K for positions in management.

Average Cost of New Construction Homes in Austin by Neighborhood

Among the best suburbs in Austin, Texas, many offer options for new construction homes. Here are some of the best areas in Austin if building your dream home is a part of your homebuyer vision. 

Buda

Buda, Texas, is an adorable little town about 15 miles from downtown Austin. Buda blends small-town charm with the beauty of Texas Hill Country. Here, you get sprawling natural spaces perfect for exploring, plus an enchanting and historic downtown area straight out of a storybook. You can indulge in chef-prepared dishes at local eateries or uncover hidden gems at boutique shops in town. And if you love being out in nature, you're in luck because Buda is known as the "Outdoor Capital of Texas" for a reason. There are tons of parks and green spaces to roam, so you have numerous ways to stay active and enjoy nature. 

According to NewHomeSource™, in March 2024, the cost of a new construction home in Buda ranges from the upper $200Ks to the low $700Ks. Our new construction homes in Buda, TX, start in the low $300Ks.

Georgetown

Founded in 1848, Georgetown is the heart and soul of Williamson County and was proudly dubbed the “Red Poppy Capital of Texas” by residents and the Texas Legislature in 1990. Georgetown's historic downtown has over 40 shops to browse, 45 restaurants to dine at, and even three wine-tasting rooms to explore; it's like a little slice of paradise for potential homebuyers. Recognized nationally as a Great American Main Street City by Main Street America in 2023 and designated as the Downtown Georgetown Cultural District, whether you're into art galleries, live music, or theater, there's always something happening in Georgetown to keep you entertained. 

The cost of a new construction home in Georgetown ranges from the upper $200Ks to $1.2M per NewHomeSourcein March 2024. Our new construction homes in Georgetown, TX, start in the mid $300Ks.

Kyle

There's so much to love about Kyle, TX, especially if you’re an outdoor enthusiast. Whether picnicking at Gregg-Clarke Park, casting a line at Lake Kyle, or teeing off at Plum Creek Golf Course, there's plenty to enjoy here. The quaint, historic downtown area offers charming shops, boutiques, and eateries just waiting to be explored. From single-family homes to more modern housing options, you'll find a cozy abode here in Kyle. 

As of March 2024, NewHomeSource finds the cost of a new construction home in Kyle ranges from mid $200Ks to low $800Ks. Our new construction homes in Kyle, TX, start in the upper $200Ks.

Leander

Leander is a bustling city on the northeast edge of the Texas Hill Country, a convenient drive from Austin. This city’s popularity is largely due to its affordability, quality schools, and housing options galore. Whether you're looking for your first home or something a bit more upscale, Leander has it. It's a welcoming place where anyone can put down roots and feel part of a friendly community. 

Building a new construction home in Leander ranges from the mid $300Ks to $1.9M, per NewHomeSource in March 2024. Our new construction homes in Leander, TX, start in the upper $300Ks.

Round Rock

Part of the Central Texas Hill Country, Round Rock is 15 miles north of Austin and home to major employers like Dell, Round Rock Premium Outlets, and Amazon. Round Rock is also known for its park system and quality school district. It's an idyllic combination of suburban life and bustling growth wrapped in one neat little package. 

According to NewHomeSource, as of March 2024, the cost of a new construction home in Round Rock ranges from the low $300Ks to $1M. Explore our new construction homes in Round Rock, TX.

Conclusion

Austin stands out as a premier choice for homebuyers due to its affordability. If you're considering Austin and its surrounding suburbs for your future home, be sure to check out the diverse range of Pulte® communities. 

Explore new construction homes in Austin, TX, today or browse more Pulte blogs.

Written By: Jordan Thomson, Freelance Writer

Last Updated: 9/25/24