Cost of Living in Austin: A Complete Guide

Austin, Texas, is a rapidly growing spot in the United States thanks to the ever-changing tech scene. Austin is known for its great bar and music scene and diversity, and in recent years, it has been attracting people from all over the USA.

In 2025, the cost of living in Austin will be an important consideration for anyone planning to relocate or even visit. Moving APT is back with another great guide for you so you can make your considerations fit your budget.

1. Rising Housing Costs in Austin

Housing is the most significant single expense for most people and can be the deciding factor in whether a city is a make-it-or-break-it budget-wise. Austin’s housing market has seen many changes over the last few years and the prices are going up up up.

While it was once considered more affordable than other major cities, prices in Austin have increased significantly, especially in recent years.

In 2025, housing costs in Austin are expected to remain high thanks to the tech boom here with elevated salaries but still are lower than some of the most expensive cities in the country. You wouldn’t expect a city in Texas to be so expensive, but hey, that’s why we are here to warn you.

The average 2-bedroom home price in Austin has skyrocketed, and in 2025, it sits at around $550,000. This is a significant jump from the average price of about $450,000 in 2020.

Homes in the best spots in Downtown Austin, Westlake Hills, and Tarrytown, can reach over $1 million, showing the city’s high demand for prime location.

Austin is no longer a hidden secret.
If you’re not ready to buy a home, renting in Austin is still an option, but it’s not necessarily that cheap either. The average rent for a one-bedroom apartment in the city is around $1,750 to $2,500 a month. In the suburbs, one-bedroom rentals average around $1,200 to $1,500 per month. This is again due to the rise of the tech industry and the movement of big companies to Austin.

For families looking for something bigger, a three-bedroom apartment in the city costs about $2,600 to $3,200, with similar options ranging from $1,800 to $2,400 monthly can be found in the suberbs.

2. Classic Costs

Austin’s great weather means that electric bills stay more reasonable than in cities with extreme weather where you need the AC 24-7. You should know that as the city continues to grow, utility prices are expected to rise, so take this into account.

Texas is known for its deregulated energy market, meaning you can shop around for electric plans. The average cost is $0.12 per kilowatt-hour.

Water costs in Austin are also low, and an entire apartment or home will cost around $80 to $100 per month.

3. Get Around the City Efficiently

Transportation in Austin is relatively affordable compared to many other major cities, but traffic congestion has become a more significant problem as the city grows. It is hard not to miss the traffic issues here which is why people want to live Downtown to be able to bike to work.

In 2025, you’ll need to budget carefully for commuting, whether driving your car which is the most popular option, using public ways of getting around, or relying on Uber.

Gas prices in Austin are around $3.00 to $3.30 per gallon in 2025 although this is standard across the US and depends on international factors. Car insurance in Texas costs around $1,200 to $1,400 per year for a private basic car, which is lower than in other states.

Parking in high-demand areas like Downtown Austin is $1.50 to $3 per hour and private lots or garages can cost of $20 to $40 per day. You have lots of private options too of renting out parking spaces in the Downtown that many people opt for.

CapMetro here locally has buses, a commuter rail line, and a light rail system for $41. The MetroRapid buses are a faster way to get around the city, but it can still take time to commute during traffic hours and don’t stop everywhere needed.

Most locals opt for ride-sharing which turns out to be more expensive than public transport so don’t forget to budget with this in mind.

4. Health

Austin’s healthcare system is strong with top-rated hospitals and medical options while premiums here cost $350 to $600 per month for an individual, depending on the type of plan and coverage you select.

Family plans are around $800 to $1,500 per month. Prescription drugs and pharmacy services are affordable in Austin, and the city has a well-known healthcare system and research facilities with several highly-rated medical centers. Some people come here on medical tourism.

5. A Taste of Austin

Austin’s food scene is one of the best in the U.S., from local food trucks that rival any 5 star restaurant and Tex-Mex to fine sit down restaurants. Luckily, the cost of food is reasonable here unlike other parts of the US, and you can eat well without breaking the bank.

If you plan to cook at home, know that a family of four will spend about $400 to $500 per month on groceries in the city. Basic items like milk, bread, eggs, and vegetables are typically cheaper than in cities like San Francisco.

The average cost of milk at $2.50 to $3.00 per gallon, and bread is around $2.50 per loaf for a basic type. Eating out here at a nice restaurant will cost around $40 to $60 for a three-course meal for two, while a taco truck can be $2 per taco.

There is quite a range. The BBQ scene in Austin is one of the best and people like to say that even when you order a small drink it comes in the largest cup they have ever seen.

6. Taxes

Texas is one of the few states in the U.S. without a state income tax, which makes it a perfect place for businesses. This is why many of the top companies in the last few years have decided to move their costal locations into the state of Texas.

The sales tax rate in Texas is 6.25%, but local cities can add additional taxes. In Austin, the total sales tax rate is 8.25%, which is quite low. Property tax rate is averaging around 1.9% in Austin.

While home prices may be lower than in coastal cities, property taxes will still add significantly to your yearly expenses so factor this in when you consider all costs.