Cost of Living in Austin: A Guide for Homebuyers
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Joseph Gordon EditorJoseph Gordon is an Editor with HomeLight. He has several years of experience reporting on the commercial real estate and insurance industries.
If you’re considering a move to Austin, understanding the cost of living in the Lone Star State can give you a better idea of if relocating is the right decision.
This guide breaks down the cost of living in Austin, from housing to homeowner’s insurance and healthcare costs. We’ll provide data from the local cost of living index and comparison tools and look at how Austin ranks for livability compared to other U.S. cities.
We’ll also share a handy set of online resources to measure and compare the cost of living and expenses in other Texas cities.
Yes, You Can Buy Before You Sell. Why Move Twice?
Through our Buy Before You Sell program, HomeLight can help you unlock a portion of your equity upfront to put toward your next home. You can then make a strong offer on your next home with no home sale contingency.
What makes up the ‘cost of living’ in Austin?
When you’re planning to live in a new city, the cost of living there will be a combination of expenses required to maintain your desired lifestyle. Cambridge Dictionary defines cost of living as “the amount of money people need to spend to buy basic goods or services such as food, clothes, and a place to live.”
This overall cost can vary significantly based on location, even within [state name]. But the living expenses you’ll pay for typically include the following categories:
- Housing (mortgage/rent)
- Energy (utility costs)
- Food (groceries)
- Transportation (vehicle or transit systems)
- Healthcare (doctors, hospitals, dentists, etc.)
However, the costs often extend beyond these basics to cover other expenses, such as:
- Clothing
- Education
- Childcare
- Entertainment
These elements, when combined, establish the core costs associated with a particular way of living. However, your living standard is largely influenced by your income and debts and how the dollar amounts compare to the costs of basic needs in your location or, in this case, the Austin community where you might want to live.
Let’s take a quick look at some ways you can compare your current living cost with what you might experience if you move to Austin.
What’s an Austin cost of living index (CLI)?
A cost of living index (CLI) monitors how these basic expenses shift over time in different states, cities, or regions. They provide a way to compare the price of maintaining a particular standard of living.
The CLI for a city like Austin is calculated by assessing the price of essential goods and services in different areas, such as housing, food, transportation, and healthcare.
A local index is typically standardized, with a base city assigned a baseline index value (usually set at 100). Other cities are then compared against this benchmark. For example, a Texas community with a CLI of 125 would signify that living there is 25% more expensive than the base location, while an index of 75 indicates it’s 25% less expensive.
A cost of living index will typically break down and score each basic expense by category. Here are separate scores for Austin from the AXIOS Austin Cost of Living Index:
- Overall CLI score: 97.8
- Housing: 104.9
- Healthcare: 95.9
- Transportation: 91.3
- Misc. goods and services: 93.8
- Grocery items: 97.0
- Utilities: 99.5
Data source used: C2ER Council for Economic and Social Research
According to AXIOS, goods and services tend to cost less in Austin than in other U.S. cities — but housing costs more (as of November 2023).
Cost perspective
AXIOM notes that while Austin’s overall cost of living is 3.2 points lower than the baseline established for the 269 cities, it is more expensive than Texas city McAllen, which — with a CLI score of 84.4 is 15.6 points lower than the base of other scored communities.
Additional cost of living data for Austin
Now, let’s look at some real-world dollar amounts collected from various cost-of-living sources. Here’s more of what you can expect if you move to Austin.
Expatistan, a cost-of-living data site, provides these monthly cost estimates for Austin:
- Family of four estimated monthly costs: $6,621
- Single-person estimated monthly costs: $4,389
Best Places lists these housing estimates on their Austin cost of living pages:
Austin housing data
| Number of homes | 433,129 |
| Median home age | 31 years |
| Median home cost | $577,400 |
| Home appreciation rate (last 12 months) | 17.0% |
| Home appreciation rate (last 5 years) | 85.7% |
| Home appreciation rate (last 10 years) | 193.9% |
| Property tax rate (per $1,000 of value) | $17.40 |
| Property taxes paid (average home) | $6,636 |
| Homes owned | 41.7% |
| Housing vacant | 6.7% |
| Homes rented | 51.6% |
Source: BestPlaces.com
Austin tax rates
- State individual income tax rate: 0.0%
- State sales tax rate: 6.25%
- Austin sales tax rate: 1.0%
- Effective property tax rate (percentage of home value): 44.58 cents per $100 taxable value
How does Austin rank for livability?
Along with the cost of living, you might be curious how Austin ranks as far as livability or quality of life. According to the AARP Livability Index of top communities in the U.S., Austin has an above-average quality of life score, ranking #18 out of the top 100 cities.
For their livability index, AARP separates cities into one of four size categories, Very Large, Large, Midsize, and Small. Austin falls in the “Very Large” city category.
The index then provides an overall score between 0-100 (higher is better) based on rankings from seven categories:
- Overall Livability Score: 59
- Housing (affordability and access): 53
- Neighborhood (proximity and security): 60
- Transportation (safety and convenience): 52
- Environment (clean air and water): 53
- Health (prevention, access, and quality): 69
- Engagement (civic and social involvement): 69
- Opportunity (inclusion and possibilities): 56
For perspective, the highest-ranked city scores in each category were:
- Very Large: San Francisco, 66
- Large: Madison, Wisconsin, 67
- Mid-size: Portland Main, 68
- Small: Aspen, Colorado, 73
No city earned a perfect score of 100. You can learn more about this livability index on AARP’s methodology page.
Check your current city’s livability score
AARP provides a Livability Index Search Page that scores communities and even neighborhoods nationwide for services and amenities that impact your life. You can check your current city score or others where you like to live near Austin. The livability index Community Finder tool allows you to filter by location, community size, livability measures, and other features, such as state and local plans to create age-friendly communities.
Additional cost of living indexes
Here are some cost of living index links to research additional Texas living expenses:
- Statista: Provides free access to many basic statistics. Paid subscriptions are available for more detailed information about Texas communities.
- ACCRA (C2ER): Maintained by the Council for Community and Economic Research. This is a paid service that maintains one of the largest databases of cost-of-living metrics for Austin and other Texas cities.
- World Population Review CLI page: This website provides a free search-by-state tool at the bottom of its Cost of Living Index page.
- Numbeo: This crowd-sourced CLI promotes itself as “the world’s largest database of user-contributed data about cities and countries worldwide.” This service can show you user-provided insights such as the cost of an inexpensive restaurant in Austin or the perceived presence of crime in different parts of Texas. It’s free for personal use.
Why are people moving to (or from) Texas?
According to the United Van Lines 47th Annual Movers Study that tracks migrations within the United States, here are why people are moving into Texas or away to other states.
Primary reasons people are moving
| Inbound | Reason for the move | Outbound |
| 7.50% | Retirement | 11.70% |
| 2.50% | Health | 5.10% |
| 26.60% | Family | 27.20% |
| 6.50% | Lifestyle | 9.90% |
| 38.80% | Job | 31.20% |
| 3.80% | Cost | 1.50% |
Total inbound: 52.7%
Total outbound: 47.3%
How Much Is Your Home Worth Now?
Home values have rapidly increased in recent years. How much is your current home worth now? Get a ballpark estimate from HomeLight’s free Home Value Estimator.
Property insurance
As property insurance rates continue to skyrocket in states like Texas, attributed to extreme weather trends due to climate change, it’s important to get a good idea of what you can expect regarding homeowner insurance rates when considering moving to one of these locations.
Homeowner’s insurers in Texas have steadily increased rates in the state for the past two years. At the tail-end of 2023, state regulators approved 36 double-digit insurance rate increases across several carriers, including a 16.8% rate increase from Travelers, one of the state’s largest carriers.
The Traveler’s rate hike was expected to impact 370,000 policyholders in the Lone Star State. Additionally, insurers have been less willing to write policies in the state due to the increased risk for potential losses, leaving homeowners with fewer options and, subsequently, higher premiums.
According to survey data from HomeLight’s 2023 Top Agent Insights report, 25% of agents nationwide have said they saw an increase in home sale cancellations due to rising or unexpected insurance costs.
According to Insurance.com, as of Jan. 2024, the average cost of homeowner’s insurance in Texas is $4,142 a year, or $345 a month, significantly higher than the national average. However, this will vary based on your Texas zip code, property type, and other factors.
Budgeting for your move to Austin
Below is a collection of handy online tools to help estimate your moving costs and living expenses in Austin — from how much you’ll need to pay a mover to how much your current home might sell for and the proceeds you can expect.
1. Online move cost estimators
With today’s smart technology, you can find a wide variety of tools to help you estimate the cost of paying for a mover or how to find a trusted mover for your relocation to Austin. Some examples include:
- Move.com Moving Cost Calculator
- Consumer Affairs ‘Find a Mover’ tool
- U-HAUL ‘Moving Help Cost’ resource page
2. Cost of living calculators
Cost of living calculators are different from cost of living indexes. These tools, which are typically free, provide a comparison based on income and regional costs for housing, transportation, food, healthcare, and other basic necessities in the two locations you select.
For example, if you live in Denver, you can view a side-by-side cost comparison with Austin expenses — or other nearby Texas cities. Some popular cost-of-living calculators include:
3. Living wage and budget calculators
- Living Wage Calculator: Designed by the Massachusetts Institute of Technology (MIT), this calculator can help you estimate the local wage rate that you’ll need as a full-time Austin worker in order to cover the costs of your family’s basic living expenses.
- Family Budget Calculator: This tool, provided by the Economic Policy Institute (EPI), estimates the income your family will need to attain a modest — yet adequate — standard of living in your new Austin community. Choose from 10 family types.
4. Homebuyer calculators
- Home Affordability Calculator: Understand the costs of buying a home in Austin and find out how much home you can afford before you start shopping or planning a move.
- Down Payment Calculator: Estimate how much you might need to put down on a home in Austin and learn more about the loan options that work best for you.
- Closing Costs Calculator: Find out how much cash you’ll need for closing costs on a Austin house, including estimated lender and third-party fees.
5. Home seller calculators
- Home Value Estimator: Get a preliminary estimate of what your current home is worth, along with options to help you get the best price when you’re ready to sell.
- Best Time to Sell Calculator: Use this calculator that incorporates nationwide real estate transaction data to help time your move.
- Agent Commissions Calculator: Learn how much you might pay in real estate agent commissions when selling a house in your current market.
- Net Proceeds Calculator: Get a ballpark idea of the net proceeds you could earn from the sale of your existing home.
Selling your current home and buying in Austin
To make your move smoother and less stressful, modern real estate solutions like HomeLight have created innovative programs to help you buy a house before selling your old one.
Watch the short video below to learn about HomeLight’s Buy Before You Sell program that lets you move into your new Austin home now and sell your current house with peace of mind and on your timeline.
Partner with a professional to find your new Austin home
As you plan your move, HomeLight can connect you with a top-performing, trusted real estate agent in your current city or the Austin community where you’d like to live. We analyze over 27 million transactions and thousands of reviews to determine which agent is best for you based on your needs.
For the best of both worlds — coming and going — ask your agent about HomeLight’s Buy Before You Sell program to help take the uncertainty out of your Austin home purchase.
Header Image Source: (Carlos Alfonso / Unsplash)
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