The Cost of Living in Austin, TX in 2025
Sunny patios, taco trucks on every corner, and an unmistakable hum of creativity—Austin’s vibrant culture, tech boom, and live-music scene make it a magnet for newcomers.
In 2025, Austin’s cost-of-living index is around 129.1, roughly 29 % higher than the national average, yet more affordable than cities like San Francisco or New York.
For homebuyers, the typical purchase price in Austin hovers at $577,400, reflecting a competitive market fueled by demand.
This guide dives deep into home-ownership costs—alongside utilities, groceries, and transportation—so you can picture life in the Texas capital with eyes wide open.
The Housing Market in Austin, Texas
The Austin housing market reflects everything people love—and compete for—about the city: a booming job scene, vibrant lifestyle, and incredible neighborhoods. But with that demand comes rising prices, making homeownership here both exciting and a serious investment.
As of 2025, the median home price in Austin is $577,400, marking a sharp 32% increase year over year, according to Realtor.com. Premium neighborhoods like Tarrytown and Westlake easily push past the $1 million mark, while nearby suburbs like Round Rock and Pflugerville offer more affordable alternatives around $500,000.
Most homes are single-family, but urban buyers are increasingly turning to condos and townhouses. Below, we’ll break down Austin’s home prices, rental trends, and what to expect when buying or investing.
2025 Austin Housing Market Snapshot
Below is a quick comparison of key home price metrics in Austin, Texas—highlighting year-over-year trends to help buyers and sellers understand the local market direction.
| Market Indicator | July 2024 | May 2025 | Year-over-Year Change |
|---|---|---|---|
| Median Sale Price | $311,333 | $296,885 | +0.3% |
| Average Sale Price | $376,289 | $378,792 | +2.0% |
| Median Price per Sq. Ft. | $164 | $161.42 | -3.0% |
Fifty days. That’s the average time an Austin home stays on the market—lightning-quick by Texas standards. Homes sell fast—often in 50 days—with multiple offers common. LRG Realty’s local expertise can help navigate this competitive market, from securing pre-approvals to negotiating offers.
Property Taxes and Fees
How much will you pay in annual property tax? Roughly $10,451 on a median-priced home. Austin’s property-tax rate is 1.81 %, among the highest in Texas, per the Travis County Tax Office. For a $577,400 home, expect annual taxes of about $10,451.
Additional homeowner outlays at a glance:
HOA fees – $50–$300/month (common in newer developments).
Closing costs – 2–5 % of purchase price, or $11,548–$28,870 for a median-priced home.
Annual maintenance – Budget 1–2 % of home value ($5,774–$11,548) for upkeep.
(Verify your projected tax rate using the estimator on the Travis County Tax Office website.)
Top Austin Neighborhoods and Home Prices (2025)
Looking for the best places to live in Austin? Here's a quick comparison of popular neighborhoods, their median home prices, and what makes each one unique.
| Neighborhood | Median Home Price | Key Features |
|---|---|---|
| Zilker | ~$1.2M | Trendy, walkable area near Barton Springs. Known for nightlife, parks, and festivals. |
| Mueller | ~$700,000 | Modern planned community with trails, shops, and family-friendly amenities. |
| Pflugerville | ~$450,000 | Suburban value with quick downtown access. Ideal for families and first-time buyers. |
| East Austin | ~$600,000 | Eclectic and fast-growing with a strong cultural scene. High appreciation potential. |
Since the St. Elmo Public Market opened in 2024, homes within a half-mile radius have appreciated 7 % faster than the city average—one of many hyper-local trends LRG tracks for buyers.
Renting as an Alternative in Austin
If buying isn’t the right move just yet, renting in Austin offers flexible options across neighborhoods. Here's a quick comparison of typical rental prices and key notes to help you decide where to live.
| Area | Typical Rent | Key Details |
|---|---|---|
| Downtown Austin | Studios from $1,768; 1BR near $2,000 | Walkable, near offices and entertainment |
| Budget-Friendly Zones | $1,200–$1,400 for 1BR | Includes North Austin and South Manchaca |
| Pet Policy Costs | ~$15/month per pet | Most apartments are pet-friendly |
Other Living Expenses in Austin
Once you’ve parked (or bussed) your way across town, the next budget variable is what lands in your grocery cart.
Utilities
Utilities for a 915 sq ft apartment average $170–$200/month, covering electricity, water, gas, and garbage. Electricity spikes in summer ($60–$140) due to AC use, per Austin Energy. Water and gas average $100, and internet starts at $50/month. Austin’s utilities are 6 % below the national average, offering some relief. (For the freshest figures, check the Austin Energy rate calculator before you budget.)
Transportation Costs in Austin, TX
Wondering how much it costs to get around Austin? Here's a quick look at average transportation expenses, including gas, public transit, and car insurance for 2025.
| Transportation Method | Average Cost | Details |
|---|---|---|
| Gas (per gallon) | $2.98 | Lower than the national average |
| Public Transit Pass | $41.25/month | Valid for Capital Metro buses and MetroRail |
| Car Insurance | $1,159/year | Full coverage estimate; rates vary |
Austin’s car-centric layout means most residents drive, with gas at $2.98/gallon and annual car insurance averaging $1,159, per Bramlett Partners. Public transit via CapMetro is affordable, with monthly passes at $41.25 and single rides at $1.50.
Groceries and Dining
Groceries are a bright spot, 3.4 % below the national average. A single person spends $200–$250/month at stores like H-E-B. Common items: milk ($4.07/gallon) and eggs ($3.05/dozen). Dining out at food trucks costs $8–$15, while a mid-range restaurant meal for two averages $50–$70.
Healthcare
Healthcare costs are 1.4 % below the national average. An optometry visit runs $126.98, and dental check-ups cost $135.58. Low-income residents can access subsidized care through programs listed on HealthCare.gov.
Entertainment
Austin’s entertainment is affordable, 8 % below the national average. Movie tickets cost $13.66, and Barton Springs Pool entry is $5–$9. Free festivals and parks keep costs low, with a $100–$200 monthly entertainment budget sufficient for most.
Income Needed for Home-Ownership
How much do you need to earn to buy a median-priced Austin home? A single buyer needs about $75,000 a year; a family of four, roughly $120,000.
To afford a $577,400 home with a 20 % down payment ($115,480) and a 30-year mortgage at 6.5 %, monthly payments are ~$3,100 (including taxes and insurance). A single person needs ~$75,000/year, while a family of four requires ~$120,000 to cover housing and other expenses comfortably, per the 50/30/20 budgeting rule.
Income benchmarks at a glance:
Single buyer – $75 K/year
Couple – $95–100 K/year
Family of four – $120 K+/year
(Curious what $600 K buys in East Austin? Chat with an LRG agent today.)
Comparing Austin’s Housing to Other Cities
How does Austin's housing market stack up against other major U.S. cities? This side-by-side comparison highlights key differences in cost of living, median home prices, and typical rent for a one-bedroom apartment.
| City | Cost of Living Index | Median Home Price | 1-Bedroom Rent |
|---|---|---|---|
| Austin, TX | 129.1 | $577,400 | $1,400–$1,700 |
| Dallas, TX | 121.5 | $400,000 | $1,300–$1,500 |
| San Francisco, CA | 192.3 | $1,300,000 | $3,000–$3,500 |
| Denver, CO | 127.5 | $600,000 | $1,700–$2,000 |
Tips for Buying a Home in Austin
Partnering with LRG Realty can ease the home-buying process. Because LRG tracks micro-trends block-by-block, they can tell you why east-facing lots near Brentwood Elementary command a premium every spring.
Get Pre-Approved: Secure financing to stand out in a competitive market.
Explore Suburbs: Pflugerville or Cedar Park offer lower prices ($450,000–$500,000).
Budget for Taxes: Factor in Austin’s 1.81 % property-tax rate.
Act Fast: Homes sell in ~50 days—work with LRG Realty to move quickly.
Consider Condos: Priced at $450,000–$600,000, they’re a cheaper entry point.
FAQs About Austin’s Cost of Living and Housing
What’s the median home price in Austin?
The median home price in 2025 is $577,400, 2.9 % above the national average. Prices range from $450,000 in suburbs like Pflugerville to over $1 M in Zilker.How much are property taxes in Austin?
Austin’s property-tax rate is 1.81 %, equating to ~$10,451/year for a $577,400 home. Check Travis County Tax Office for details.Is renting cheaper than buying in Austin?
Renting ($1,400–$1,700 for a one-bedroom) is often cheaper than monthly mortgage payments (~$3,100 for a median home), especially for short-term residents.What’s the most affordable neighborhood to buy in?
Pflugerville and Round Rock offer homes around $450,000–$500,000—ideal for budget-conscious buyers seeking proximity to downtown.How much income do I need to buy a home in Austin?
For a $577,400 home, you’ll need ~$75,000/year for a single person or $120,000 for a family of four.Are there first-time home-buyer programs in Austin?
Yes. Austin’s housing programs and FHA loans offer down-payment assistance and lower rates for eligible buyers.How fast do homes sell in Austin?
Homes sell in ~50 days, often with multiple offers. LRG Realty can help craft competitive bids.What are closing costs in Austin?
Closing costs are 2–5 % of the home price, or $11,548–$28,870 for a $577,400 home.Are condos a good investment in Austin?
Condos ($450,000–$600,000) are a more affordable entry point than single-family homes and suit urban lifestyles, especially in Mueller or Downtown.How can LRG Realty help me buy a home?
LRG Realty offers market insights, negotiation expertise, and access to listings, helping you find and secure your dream home in Austin’s competitive market.
Your Path to Home-Ownership with LRG Realty
Austin’s cost of living, driven by housing, reflects its status as a thriving, desirable city.
With median home prices at $577,400 and a competitive market, partnering with LRG Realty ensures you navigate the process with confidence.
From affordable suburbs to luxury downtown condos, Austin offers options for every buyer.
