The Cost of Living in Austin, TX in 2025

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.

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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:

  1. HOA fees – $50–$300/month (common in newer developments).

  2. Closing costs – 2–5 % of purchase price, or $11,548–$28,870 for a median-priced home.

  3. 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

  1. 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.

  2. 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.

  3. 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.

  4. 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.

  5. 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.

  6. 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.

  7. How fast do homes sell in Austin?
    Homes sell in ~50 days, often with multiple offers. LRG Realty can help craft competitive bids.

  8. 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.

  9. 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.

  10. 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.



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