Austin TX Cost of Living 2024: The Real Numbers
Austin is no longer a cheap city — but compared to San Francisco, New York, or Seattle, it remains significantly more affordable. Here is an honest breakdown of what it costs to live in Austin in 2024.
Housing Costs
Buying
- Austin proper median home price: ~$520,000
- Williamson County suburbs median: $320,000-$440,000
- Hays County suburbs median: $330,000-$390,000
- Monthly mortgage payment (7%, 20% down, $380K): approximately $2,530 P&I + $700 taxes + $200 insurance = $3,430 total
Renting
- 1 bedroom Austin: $1,400-$1,900/month
- 2 bedroom Austin: $1,700-$2,400/month
- 3 bedroom Austin suburbs: $1,800-$2,600/month
- Single family home Austin suburbs: $2,200-$3,200/month
Transportation
Austin requires a car — public transit serves limited corridors. Budget:
- Two car household: $800-$1,400/month (payments, insurance, gas, maintenance)
- Average Austin gas price (2024): $2.90-$3.40/gallon
- Car insurance: $150-$250/month per vehicle
- No personal vehicle property tax (unlike some states)
Groceries and Dining
- Monthly groceries (household of 2-3): $600-$900
- Austin restaurant dinner (mid-range): $45-$75 for two
- Coffee: $5-$7 per specialty drink
- Major grocery chains: H-E-B (Texas institution — excellent and affordable), Costco, Whole Foods (founded in Austin), Walmart
Utilities
Austin's extreme summers mean high electricity bills:
- Summer electric bill (average 1,800 sq ft home): $200-$350/month (June-August)
- Winter: $80-$150/month
- Water: $40-$80/month
- Internet: $60-$100/month
- Natural gas: $20-$80/month (seasonal)
Annual utility estimate: $3,500-$5,500
Healthcare
- Employer-sponsored insurance: Widely available from major Austin employers
- ACA marketplace: Available for self-employed
- Medical costs: Generally 10-15% below national average
- UT Health Austin, St. David's, Ascension Seton: Major health systems with wide coverage
Texas Income and Other Taxes
- State income tax: $0 (Texas has no state income tax)
- Federal income tax: Standard federal rates apply
- Sales tax: 8.25% (6.25% state + 2% Austin city)
- Property tax: 1.8-2.5% of assessed value annually — plan for $600-$800/month on a $380K home
Full Monthly Budget Estimate (Family of 3, Austin Suburb)
| Expense | Monthly Cost |
|---|---|
| Mortgage/rent (3BR home) | $2,800-$3,500 |
| Cars (2) | $900-$1,200 |
| Groceries | $700-$900 |
| Utilities | $300-$450 |
| Dining out | $300-$500 |
| Healthcare (after employer) | $200-$400 |
| Entertainment | $200-$400 |
| Total | $5,400-$7,350 |
For a family of 3, a household income of $100,000-$130,000 supports a comfortable Austin suburban lifestyle.
Frequently Asked Questions
A single person renting a 1-bedroom apartment in Austin spends approximately $3,000-$4,000/month all-in (rent, car, food, utilities, entertainment). A family of 3-4 buying a suburban home spends $5,500-$8,000/month. Austin is more expensive than most Texas cities but significantly cheaper than coastal metros.
Utilities in Austin average $300-$500/month for a typical 3-bedroom home. The summer electric bill is the biggest variable — expect $200-$350/month from June through August due to air conditioning in 100°F+ heat. Choose a home with quality insulation and a recently replaced HVAC system to minimize cooling costs.
H-E-B is generally 10-15% cheaper than comparable quality grocery chains and offers excellent product selection including Texas-sourced items. It is a beloved Texas institution. For budget grocery shopping, H-E-B's store brands and weekly specials are the best value in Austin.
