Austin’s overall cost of living sits about 2% below the national average on the BEA regional price parity index. Housing is the variable that changes the math: the City of Austin median sale price is $560,000 while the metro median is $412,000 as of August 2026, a $148,000 gap.
BEA Regional Price Parity
- Austin-Round Rock MSA: 98.1 on the BEA all-items regional price parity index for 2024, meaning overall prices in the Austin metro are about 2% below the national average of 100.
- How this compares in Texas: Dallas-Fort Worth sits at 103.1, about 3% above the national average. Houston is at 98.6, about 1% below. San Antonio is at 94.7, about 5% below. Austin falls between San Antonio and Houston.
- What the index covers: The BEA regional price parity measures the price levels of goods and services across U.S. metro areas relative to the national average, published annually by the Bureau of Economic Analysis via FRED.
Housing by Geography
- City of Austin median sale price: $560,000 in August 2026, down 4.3% year over year, per the Unlock MLS Central Texas Housing Report.
- Austin-Round Rock-San Marcos MSA median: $412,000 in August 2026, down 6.4% year over year. The gap exists because the metro includes Round Rock, Pflugerville, Cedar Park, Georgetown, Kyle, Buda, and surrounding suburbs.
- Travis County median: $489,000 in August 2026, sitting between the city and metro figures because it includes areas outside city limits.
Lease Costs Across the Metro
- MSA median MLS lease: $2,150 per month in August 2026, flat year over year, per Unlock MLS. This is the MLS lease median, which reflects properties listed through the MLS.
- City of Austin median MLS lease: $2,200 per month, down 4.3% year over year.
- County variation: Williamson County $2,150; Hays County $2,000; Bastrop County $1,950; Caldwell County $1,600.
Mortgage Rate Used in These Examples
- 30-year fixed: 7.28% as of October 1, 2026, per the Freddie Mac Primary Mortgage Market Survey.
- 15-year fixed: 6.60% for the same week.
- What this means for payment: At 7.28% on the $412,000 metro median with 5% down, principal and interest alone run roughly $2,678 per month before taxes, insurance, or any assessments.
Is Austin expensive compared to the rest of the country?
On the BEA regional price parity index, the Austin-Round Rock MSA scored 98.1 for 2024, placing it about 2% below the national average of 100. This means the overall price level of goods and services in the Austin metro is slightly below the U.S. average. However, the index covers the entire metro area. If your housing is inside Austin city limits at the $560,000 median sale price, your cost experience will differ from someone in the surrounding suburbs at the $412,000 metro median.
How much does it cost to rent in Austin?
The Unlock MLS August 2026 report shows a median MLS lease of $2,200 per month in the City of Austin and $2,150 across the full metro. These are MLS lease figures for properties listed through the MLS. County-level medians range from $1,600 in Caldwell County to $2,200 in Travis County.
Does Texas have a state income tax?
No. Texas does not levy a personal income tax. This is a meaningful cost-of-living factor for people comparing Austin to cities in states with income taxes. The tradeoff is that Texas relies on property taxes and sales taxes for revenue, so property tax bills in the Austin metro can be significant. Filing a homestead exemption after purchasing reduces your school district taxable value by $140,000.
The Bottom Line Up Front
Austin’s overall cost of living is close to the national average on the BEA regional price parity index, but the number you experience depends on where you live in the metro. The City of Austin median home price is $560,000; the metro median is $412,000. MLS lease medians range from $1,600 in Caldwell County to $2,200 in the City of Austin. Texas has no income tax, but property taxes are the counterweight. This guide walks through the sourced data so you can build a realistic budget before deciding whether to rent or buy, and where.
What the BEA Price Parity Index Shows
The Bureau of Economic Analysis publishes regional price parities annually. The index measures the price levels of goods and services across U.S. metro areas relative to the national average of 100. A value above 100 means prices are above the national average; below 100 means below.
| Metro Area | RPP Index, 2024 | vs National Avg |
|---|---|---|
| Dallas-Fort Worth-Arlington | 103.1 | 3.1% above |
| Houston-The Woodlands-Sugar Land | 98.6 | 1.4% below |
| Austin-Round Rock | 98.1 | 1.9% below |
| San Antonio-New Braunfels | 94.7 | 5.3% below |
- What this means in practice: The index says that the overall price level of goods and services in the Austin metro is about 2% below the national average. This is an all-items measure that includes housing, food, transportation, healthcare, and other categories, weighted by consumer spending patterns.
- Why different sources show different numbers: Cost-of-living calculators use different methodologies, geographies, and component weightings. The BEA RPP is an all-items metro-wide index. When you see a cost-of-living figure for Austin, check whether it refers to the city, the county, or the metro, and what categories are included.
- Austin’s RPP trend: The Austin MSA RPP was 101.1 in 2020, 100.0 in 2021, 98.8 in 2022, 98.3 in 2023, and 98.1 in 2024. The index crossed from slightly above the national average to slightly below over this period, per the BEA data on FRED.
Housing Costs by Geography
The August 2026 Unlock MLS Central Texas Housing Report breaks down housing data by geography.
Sale Prices by Geography
| Geography | Median Sale Price, Aug 2026 | YoY Change |
|---|---|---|
| City of Austin | $560,000 | -4.3% |
| Travis County | $489,000 | -6.4% |
| Austin-Round Rock-San Marcos MSA | $412,000 | -6.4% |
| Williamson County | $399,900 | -5.9% |
| Hays County | $355,000 | -1.4% |
| Bastrop County | $342,495 | -5.1% |
| Caldwell County | $270,000 | +17.4% |
The City of Austin median is $148,000 above the metro median. This gap exists because the metro stretches from Georgetown to San Marcos and includes suburbs with different price points. When someone quotes “the Austin median,” check whether they mean city or metro. The answer changes the budget math by six figures.
MLS Lease Medians by Geography
| Geography | Median MLS Lease, Aug 2026 | YoY Change |
|---|---|---|
| City of Austin | $2,200 | -4.3% |
| Travis County | $2,200 | -2.2% |
| Austin-Round Rock-San Marcos MSA | $2,150 | flat |
| Williamson County | $2,150 | +1.4% |
| Hays County | $2,000 | flat |
| Bastrop County | $1,950 | +1.3% |
| Caldwell County | $1,600 | -5.9% |
These are MLS lease medians from Unlock MLS, reflecting properties listed through the multiple listing service.
What You Actually Pay Monthly to Buy
The purchase price is the starting point, not the cost. Your actual monthly payment includes principal, interest, property taxes, homeowners insurance, and any HOA, MUD, or PID assessments at your specific address.
Principal and Interest at the Metro Median
| Input | Value |
|---|---|
| Purchase price | August 2026 metro median: $412,000 |
| Down payment | 5% conventional, $20,600 |
| Loan amount | $391,400 |
| Rate | 7.28%, 30-year fixed, PMMS week of Oct 1, 2026 |
| Principal and interest | ~$2,678 per month |
| Property taxes | Varies by taxing district. Enter your address in the escrow shock test. |
| Homeowners insurance | Get a quote for the specific property. |
| PMI | Ask your lender for a quote. |
| HOA, MUD, PID | Check the listing and the MUD and PID cost tool. |
How Geography Changes the Payment
| Geography | Aug 2026 Median | 5% Down Loan | P&I at 7.28% |
|---|---|---|---|
| City of Austin | $560,000 | $532,000 | ~$3,640 |
| Austin-Round Rock-San Marcos MSA | $412,000 | $391,400 | ~$2,678 |
| Williamson County | $399,900 | $379,905 | ~$2,599 |
| Hays County | $355,000 | $337,250 | ~$2,308 |
These are principal and interest only. Property taxes, insurance, and any MUD or PID assessments are in addition to these figures. Use the full mortgage payment calculator to see the complete number before you start looking.
Property Taxes and the Homestead Exemption
Texas does not levy a state income tax. The tradeoff is property taxes.
- Homestead exemption: After you purchase and occupy your primary residence, file Form 50-114 with the county appraisal district. This reduces your school district taxable value by $140,000. Homeowners 65 and older receive an additional $60,000 reduction. Check with the county appraisal district for filing deadlines.
- 10% appraisal cap: Under Texas Tax Code 23.23, a homestead property’s appraised value cannot increase by more than 10% per year regardless of market movement. This cap applies only after the homestead exemption is in place.
- Protests: The property tax protest guide walks through the process.
Austin vs Dallas, Houston, and San Antonio
The BEA regional price parity and Unlock MLS data let you compare Austin to the other major Texas metros on two dimensions: overall cost of living and housing.
Overall Cost of Living
| Metro | BEA RPP, 2024 | vs US Average |
|---|---|---|
| Dallas-Fort Worth | 103.1 | 3.1% above |
| Houston | 98.6 | 1.4% below |
| Austin-Round Rock | 98.1 | 1.9% below |
| San Antonio-New Braunfels | 94.7 | 5.3% below |
- Austin vs San Antonio: San Antonio’s RPP of 94.7 is 3.4 index points below Austin’s 98.1.
- Austin vs Dallas: Dallas-Fort Worth’s RPP of 103.1 is 5.0 index points above Austin’s 98.1. Dallas is the only one of the four that sits above the national average on this index.
- Austin vs Houston: Houston’s RPP of 98.6 is 0.5 index points above Austin’s 98.1. The two metros are close to each other and both close to the national average.
- What this does not capture: The RPP is an all-items annual index at the metro level. It does not isolate housing, and it does not reflect within-metro variation. This comparison covers metro areas, not neighborhoods.
Price Points by County
The Austin-Round Rock-San Marcos MSA spans multiple counties and cities, each with different price points. The table below shows August 2026 median sale prices and MLS lease medians by county, all from the Unlock MLS report.
| County | Median Sale Price | Median MLS Lease | Major Cities |
|---|---|---|---|
| Travis | $489,000 | $2,200 | Austin, Pflugerville, Manor |
| Williamson | $399,900 | $2,150 | Round Rock, Cedar Park, Leander, Georgetown |
| Hays | $355,000 | $2,000 | San Marcos, Kyle, Buda, Dripping Springs |
| Bastrop | $342,495 | $1,950 | Bastrop, Elgin |
| Caldwell | $270,000 | $1,600 | Lockhart, Luling |
- Williamson County: Round Rock, Cedar Park, Leander, and Georgetown sit in Williamson County. The median sale price of $399,900 is $160,100 below the City of Austin median. Pending sales were up 9.3% year over year in August 2026.
- Hays County: Kyle, Buda, San Marcos, and Dripping Springs sit in Hays County. The median of $355,000 is $205,000 below the City of Austin.
- Bastrop County: The median of $342,495 is below the City of Austin median. Commute to central Austin is a factor at this distance.
- Commute planning: Use the commute stress test to model drive times before choosing a geography.
Renting vs Buying: How to Think About the Decision
The rent-vs-buy calculation in Austin depends on your geography, your timeline, and your total cost tolerance.
- Metro lease vs buy gap: The metro median MLS lease is $2,150 per month. The principal and interest on the metro median home at 5% down and 7.28% is roughly $2,678 per month, before taxes, insurance, and any assessments.
- City of Austin lease vs buy: The city median MLS lease is $2,200 per month. Principal and interest on the city median at 5% down and 7.28% is roughly $3,640 per month, before taxes and insurance. The city median home price of $560,000 is above the metro median of $412,000. The gap between renting and owning is wider inside city limits.
- How to decide: The comparison depends on your timeline, down payment, and tolerance for variable costs. Use the tools below to model both scenarios with your own numbers.
- No rule of thumb replaces the real numbers: Use the full mortgage payment calculator with a specific property and your actual down payment to see what ownership costs. Use the escrow shock test to see how taxes, insurance, and MUD assessments change the payment over time.
Building Your Austin Budget
The categories below cover the major components of a monthly budget in Austin. Housing is covered in the sections above. For the remaining categories, costs vary by household size, location, and lifestyle choices.
- Housing: The figures above show the range. Your specific cost depends on whether you rent or buy, which geography you choose, and the terms of your lease or mortgage. This is the line item where Austin’s cost varies by six figures depending on geography.
- Property taxes: Only for homeowners. Filing the homestead exemption reduces your school district taxable value by $140,000.
- No state income tax: Texas does not levy a personal income tax. If you are relocating from a state with income tax, factor this into your net-pay comparison.
- Transportation: Varies by household.
- Groceries: Grocery costs are included in the BEA all-items price parity that puts Austin at 98.1. The index does not break out groceries separately at the metro level.
- Utilities: Electric, water, trash, and internet.
Where to Look Next
Narrowing from “Austin cost of living” to a specific geography and housing type is the step that turns general research into a real budget.
- Buying in Austin: The guide to buying a home in Austin covers the market data, financing, contract steps, and due diligence specific to the Austin metro.
- Neighborhoods in Austin: The Austin neighborhoods guide covers areas across the metro.
- Travis County: The Travis County neighborhoods guide covers areas inside and outside Austin city limits across Travis County.
- Your total monthly payment: Use the full mortgage payment calculator to see principal, interest, taxes, insurance, and any MUD or PID in one number. Use the cash-to-close calculator to model your closing costs and down payment.
Frequently Asked Questions
Is Austin expensive to live in?
The BEA regional price parity index for the Austin-Round Rock MSA is 98.1 for 2024, meaning overall prices in the metro are about 2% below the national average. The City of Austin median sale price is $560,000 while the metro median is $412,000. Your cost experience depends on whether you are renting or buying, and whether you live inside the city or in the surrounding metro.
What is the median home price in Austin?
It depends on the geography. The City of Austin median sale price was $560,000 in August 2026. The Austin-Round Rock-San Marcos MSA median was $412,000. Travis County was $489,000. These come from the Unlock MLS Central Texas Housing Report. When someone quotes “the Austin median,” check whether they mean city or metro.
How much does rent cost in Austin?
The Unlock MLS August 2026 median MLS lease was $2,200 per month in the City of Austin and $2,150 across the metro. These are MLS lease figures for properties listed through the MLS. County-level MLS lease medians range from $1,600 in Caldwell County to $2,200 in Travis County.
Does Texas have a state income tax?
No. Texas does not levy a personal income tax. This affects your net pay if you are relocating from a state that does. The tradeoff is that Texas relies on property taxes and sales taxes, so property tax bills carry a significant share of the revenue load.
How do property taxes work in Austin?
Filing a homestead exemption reduces your school district taxable value by $140,000. The 10% appraisal cap under Texas Tax Code 23.23 limits how much your appraised value can increase each year.
What is the homestead exemption and how do I file?
The homestead exemption reduces your school district taxable value by $140,000. Homeowners 65 and older receive an additional $60,000 reduction. File Form 50-114 with the county appraisal district. Contact the county appraisal district for filing deadlines and details.
How does Austin’s cost of living compare to Dallas and Houston?
On the BEA regional price parity index for 2024, Austin at 98.1 is below Dallas-Fort Worth at 103.1 and close to Houston at 98.6. Austin’s metro-wide all-items price level is below the national average and below Dallas. However, this is a metro-wide measure. City-of-Austin housing prices are well above the metro median, and housing is the category where Austin can feel expensive.
What are the median prices in Austin suburbs?
August 2026 Unlock MLS data shows these county medians: Williamson $399,900; Hays $355,000; Bastrop $342,495; Caldwell $270,000. All are below the City of Austin median of $560,000. Round Rock, Cedar Park, Pflugerville, Kyle, Buda, and Georgetown are the primary suburban alternatives in the metro. Each has different tax structures, school districts, and commute patterns.
How much is a mortgage payment on the Austin metro median?
At the August 2026 metro median of $412,000 with 5% down on a 30-year fixed at 7.28%, the principal and interest alone are roughly $2,678 per month. Property taxes, homeowners insurance, and any MUD or PID assessment are in addition to this figure. The total monthly payment depends on the specific property. Use the full mortgage payment calculator to see the complete number.
What is the difference between the city median and the metro median?
The City of Austin median was $560,000 in August 2026. The Austin-Round Rock-San Marcos MSA median was $412,000. The gap of $148,000 exists because the metro includes suburbs like Round Rock, Pflugerville, Cedar Park, Georgetown, Kyle, and Buda, with different price points. The city figure covers only transactions within Austin city limits. When comparing cost of living, the median you use changes the math by six figures.
Data and Methodology
The cost-of-living comparison in this guide uses the Bureau of Economic Analysis regional price parity index for 2024, 2024 data, published on FRED. Housing and lease statistics come from the Unlock MLS August 2026 Central Texas Housing Report, which covers the Austin-Round Rock-San Marcos MSA and is published by the Austin Board of REALTORS. Mortgage rates are from the Freddie Mac Primary Mortgage Market Survey for the week ending October 1, 2026. Property tax information references the Texas Tax Code and the Texas Comptroller of Public Accounts. Payment calculations use the stated inputs with a standard amortization formula. The MLS lease median reflects properties listed through the multiple listing service.
