Apartment List analyzed prices of specific goods and services in Austin compared to the average prices across the country.
AUSTIN, Texas — The overall cost of living in Austin is above the national average, according to data gathered and analyzed byApartment List.
Apartment List analyzed prices of specific goods and services in Austin compared to the average prices across the country. From there, the prices were aggregated and weighted into six groups, which were again aggregated into a single top-line cost of living stat.
The analysis found that the overall cost of living is 1% higher in Austin than the national average.
"In the case of Austin, overall cost of living is on par with the nation as a whole. But it appears to be a bit of a tradeoff between high housing costs (which are 18% higher in Austin than the rest of the USA) offset by lower costs for other day-to-day items. In particular, groceries are cheaper in Austin than in all but 5 other cities," said Rob Warnock, senior research associate for Apartment List.
On the pricier side, in addition to housing, health care is also 1% higher in Austin. But on the cheaper side, in addition to groceries, transportation is 10% cheaper than average and utilities are 3% cheaper.
Overall, Warnock said he thinks the data speaks to Austin's recent popularity.
"Relatively low cost-of-living has attracted new residents and the city has grown rapidly," he said. "But, of course, this has put strain on the housing market and, in return, home prices and rents have both increased quickly."
Earlier this month, Apartment List announced that in 2022, Austin officials approved more new housing permits than any other metro in the country.
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FAQs
"In the case of Austin, overall cost of living is on par with the nation as a whole. But it appears to be a bit of a tradeoff between high housing costs (which are 18% higher in Austin than the rest of the USA) offset by lower costs for other day-to-day items.
What is the cost of living in Austin compared to the national average? ›
Austin's cost of living index stands at 129.1, making it more affordable than some major US cities, but higher than the national average, with estimated monthly and annual incomes required to live comfortably set at $2,600 and $58,800 for singles, and $110,520 for families.
Is Austin one of the most expensive places to live? ›
Austin is one of the most expensive cities in the US. The capital of Texas comes in as the most expensive city in the state. Housing costs have skyrocketed in Austin.
How much did cost of living raise in Austin? ›
Did the Cost of Living in Austin, TX increase in 2024? Austin, TX area prices were up 1.2% from a year ago. The largest increases were found in Transportation, Food, and Housing.
Is cost of living higher in Austin than Dallas? ›
You would need around 6,700.6$ in Austin, TX to maintain the same standard of life that you can have with 6,600.0$ in Dallas, TX (assuming you rent in both cities). This calculation uses our Cost of Living Plus Rent Index to compare the cost of living and assume net earnings (after income tax).
Why is Austin cost of living so high? ›
The demand for housing in Austin has increased significantly in recent years due to the city's rapid population growth, resulting in a limited supply of affordable housing. The high cost of housing in Austin also affects the cost of rent, which is higher compared to Houston.
What is the cost of living in Texas compared to the national average? ›
The cost of living in Texas is 7% lower than the national average. Housing is 17% lower than the national average, while utilities are 3% higher. When it comes to basic necessities such as food and clothing, groceries are around 4% lower than in the rest of the country, while clothing costs 4% lower.
Where does Austin rank in expensive cities? ›
Austin now the 5th most expensive large U.S. city for renters, rental company says. AUSTIN, Texas — On top of inflation and expensive gas in 2022, if you rent your home, you're probably feeling the financial strain. This is particularly true in the Texas capital.
Is Austin becoming unaffordable? ›
In just a decade, Austin has gone from one of America's most affordable cities to one of its least. Largely driven by the expansion of the tech industry, the Texas capital is attracting high-earning transplants — in 2020, an average of 180 people moved there each day.
What Texas city has the highest cost of living? ›
Austin has the highest cost of living in Texas, study states.
As for the capital city of Austin, it ranked as the 65th most expensive city of the 99 analyzed. Individuals need roughly $100,000 to live comfortably on their own, and families of four need about $224,000.
Is Austin getting expensive? ›
The Texan city has been at the epicenter of the American housing market correction after house prices reached the national peak of $348,225 in July 2022, according to Zillow. Now prices in Austin are dropping 10 times faster than the national average.
Is Austin getting more expensive? ›
By Moody's count, Austin home prices still run 35% higher than what the city's underlying economic trends would typically support. Austin's per capita income rose 23% between 2020 and 2022, but home prices increased more than twice as much.
Is the cost of living higher in Houston or Austin? ›
Key Takeaways. Houston has a lower cost of living than Austin, but with different vibes – Houston is bustling and diverse while Austin offers an outdoor-focused atmosphere. Austin provides more economic opportunities due to its tech industry, while Houston's economy is bolstered by oil & gas companies.
Is Austin one of the most expensive cities in the US? ›
Austin went from a 'weird' oasis to one of the most expensive cities in the US. Now it's fighting runaway housing prices.
Is Dallas becoming unaffordable? ›
A new study by Realty Hop, found that Dallas housing has become 2.27x more expensive for Millennials and Gen Z than it was for Baby Boomers. In 1970, the median family income for Dallas was $10,019, and the median home value was $16,500.
What salary do you need to live comfortably in Austin? ›
Austinites would need to make a $99,757, or a $44.12 hourly wage individually to lead a comfortable lifestyle and avoid living paycheck to paycheck, says the report, which analyzed 99 major U.S. cities.
What is a livable salary in Austin Texas? ›
The City of Austin's living wage is $20.80 per hour, effective October 2023.
How expensive is Austin compared to other cities? ›
The cost of living in Austin is slightly higher than the national average, but lower than many other major US cities. According to the Council for Community and Economic Research's Cost of Living Index, Austin's cost of living is 1% higher than the national average.
Is Austin the most expensive city in the US? ›
Austin now the 5th most expensive large U.S. city for renters, rental company says. AUSTIN, Texas — On top of inflation and expensive gas in 2022, if you rent your home, you're probably feeling the financial strain.
