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
Home-ownership in Austin is a significant investment, with prices reflecting the city’s popularity. Below, we break down buying, renting, and related costs to give you a clear picture.
The median price of a home in Austin, Texas is $577,400, according to Realtor.com. The median home price in Austin for 2025 is $577,400, a 32 % year-over-year increase.
Homes in premium neighborhoods like Tarrytown or Westlake can exceed $1 million, while suburbs such as Round Rock or Pflugerville offer options closer to $500,000. Single-family homes dominate, but condos and townhouses are gaining traction for urban dwellers.
Snapshot of Austin’s Housing Market
| Property Type | Median Price (2025) | Compared to National Avg. |
|---|---|---|
| Single-Family Home | $577,400 | 2.9% higher |
| Condo/Townhouse | $450,000–$600,000 | ~5% higher |
| Luxury/Waterfront | $600,000–$4 M+ | 20%+ higher |
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.)
Austin, TX Neighborhood Breakdown
| Neighborhood | Median Price | Snapshot |
|---|---|---|
| Zilker | ~$1.2 M | Trendy, walkable, close to Barton Springs; kaleidoscope of murals and late-night taco joints. |
| Mueller | ~$700,000 | Planned community with modern homes, parks, and amenities. |
| Pflugerville | ~$450,000 | Affordable, family-friendly, 20-minute drive to downtown. |
| East Austin | ~$600,000 | Up-and-coming, vibrant culture; gentrification pushing prices north. |
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
Renting remains a viable option for those not ready to buy. in Austin The average rent for a one-bedroom apartment is $1,400–$1,700/month, while two-bedrooms range from $1,500–$2,100. Single-family home rentals in areas like South Austin cost $2,300–$3,000/month.
| Area | Typical Rent | Notes |
|---|---|---|
| Downtown | Studios start at $1,768; one-bedrooms near $2,000 | Walk to work and nightlife |
| Budget Areas | $1,200–$1,400 for one-bedrooms | North Austin, South Manchaca |
| Pet Fees | ~$15/month per pet | City’s pet-friendly vibe |
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
| Transportation Type | Average Cost | Notes |
|---|---|---|
| Gas (per gallon) | $2.98 | Below national avg. |
| Monthly Bus Pass | $41.25 | Covers buses & MetroRail |
| Car Insurance (annual) | $1,159 | Full coverage; varies |
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
| 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.
